The South Carolina Due Diligence Period, Explained in Plain English

If you have bought a home in another state, or watched enough HGTV, you might be waiting for the famous "inspection contingency." Here in South Carolina, that is not how it works anymore. Since the South Carolina Association of REALTORS® updated the standard residential contract in June 2022, we use a due diligence period instead. Same goal, different mechanics, and the difference matters.

What the due diligence period actually is

The due diligence period is a window of time, negotiated between you and the seller, when you get to investigate the home and decide whether you still want to buy it. It starts on the effective date of the contract and ends on a specific date and time, often 6:00 PM on the final day. During that window you can do your inspections, review the HOA documents, check the survey, confirm the school zone, and look into anything else that matters to your decision.

How long is it?

It is negotiable. Historically we saw 10 to 14 days. In hot stretches of the market, I have seen buyers agree to as little as 1 to 3 days to make their offer more competitive. Shorter is riskier for you, so we decide together based on how much you need to verify and how strong the offer needs to be.

Your superpower during due diligence

Here is the part most buyers do not realize: during the due diligence period you can terminate the contract for any reason, or no reason at all, as long as you give proper written notice before the period expires. Do that correctly and on time, and you get your earnest money back. That is real protection, and it is why the clock matters so much.

Inspections happen inside that window

You hire a licensed home inspector, and they look at the big stuff: roof, HVAC, electrical, plumbing, foundation, and visible structure. If the report turns up problems, you have two paths, and both need to be wrapped up before the due diligence period ends:

• Negotiate. Ask the seller to make repairs or give you a credit at closing. They can say yes, counter, or decline.
• Walk away. If it is a deal-breaker and the seller will not budge, you can terminate within the period and recover your earnest money.

A Ridgeville note: septic and well

Many homes around Ridgeville sit on septic systems and private wells rather than public utilities. When that is the case, I want a separate septic inspection and a well water test inside the due diligence window. These are easy to overlook and expensive to fix, so we plan for them up front.

Earnest money and the termination fee

Earnest money in South Carolina usually runs about 1 to 5 percent of the purchase price and sits in escrow until closing, when it gets credited toward your purchase. Some contracts also include a separate termination fee that protects the seller during your due diligence period. Earnest money and a termination fee are two different things, and we will go over both line by line before you sign.

What happens when the clock runs out

Once the due diligence period expires, the contract essentially converts to an as-is purchase. If you back out after that point without a contractual reason, you risk losing your earnest money. Miss the deadline by even one day and you lose that easy exit, so I treat the due diligence date like the most important date on the calendar, because it is.

The bottom line

South Carolina does not hand you an inspection contingency to lean on. It gives you a due diligence period to use well. Handled right, it is one of the strongest protections you have as a buyer. When you are ready to walk through your timeline, I am here.

Educational and general guidance only. Not legal advice. Verify contract terms, deadlines, and your specific situation with your real estate attorney. Jessica Cherie Blommaert, REALTOR®, eXp Realty, LLC. SC License #146007. Equal Housing Opportunity.