The due diligence period in Georgia: what to do day by day

The due diligence period is the window, written into the Georgia purchase and sale agreement, during which the buyer can terminate the contract for any reason or for no reason and get the earnest money back. It is negotiated (seven to fourteen days is common), it runs in calendar days from the Binding Agreement Date, and under the GAR form it ends at 11:59 pm on the last day. Here is how to use a ten-day period well.

Day 0: the contract goes binding

Confirm the Binding Agreement Date in writing with everyone and count the days on a calendar, not in your head. Send the buyer a one-page list of what happens each day, and get the earnest money moving the same afternoon.

Day 1: order everything

Book the general home inspection for day 2 or 3. If the house is older, on a septic system, or has trees over the sewer line, book the specialty inspections too: termite, sewer scope, radon, roof, HVAC. Request the HOA documents, the seller's disclosure if it has not arrived, and ask two insurers for a homeowner's quote. Insurance surprises are a due diligence issue, not a closing issue.

Days 2 to 4: inspections

The buyer should attend the general inspection, at least the last half hour, and hear the summary in person. Ask the inspector which items are safety, which are maintenance, and which are cosmetic. A report has fifty items; a negotiation has five.

Days 5 and 6: read, price and decide

Get contractor estimates for the big items: roof, HVAC, foundation, water intrusion, electrical panel. Rank the findings into three lists: deal-breakers, things to ask for, and things to accept. This is also when the buyer reviews the HOA rules for rental restrictions, pets and parking, and checks the flood zone.

Day 7: send the repair request

Deliver the Amendment to Address Concerns with specific, itemized requests, and a date to respond. Ask for repairs by licensed contractors with receipts, or a credit, or a price reduction; do not ask for all three. Sending it on day 7 leaves three days to negotiate.

Days 8 and 9: negotiate

The seller answers, counters, or goes silent. Each round takes a day. If the gap is not closing and the buyer wants the house, this is the moment to sign an amendment extending the due diligence period, before it ends, not after.

Day 10: decide by 11:59 pm

Three ways to finish: sign the agreed amendment and continue; let the period end and continue with the house as-is; or deliver written notice of termination before 11:59 pm and recover the earnest money. There is no fourth option, and a text message to the listing agent at midnight is not notice under the contract.

What happens if the deadline is missed

The buyer is in the contract without the right to walk away for free. Termination after due diligence depends on whichever contingencies remain (financing, appraisal, title) and on their own deadlines. Missing this date is the single most expensive administrative error in a Georgia transaction, which is why a transaction coordinator treats it as a day that ends at 11:59 pm, not at 5.

Questions buyers and agents ask

Can the seller keep showing the house during due diligence? Usually yes, and can accept backup offers, but cannot sell to someone else while the contract is in force.

Does the earnest money come back automatically on termination? The contract sets the process: written termination during the period, then the holder disburses. It is routine when done on time.

Is due diligence the same as the inspection contingency? No. Georgia's due diligence right is broader: it does not require a reason. Other states use an inspection contingency tied to the inspection report.

This article is general information for real estate professionals and their clients, not legal advice. The Georgia Association of REALTORS® contract forms are at garealtor.com.