Contracts
When a GAR contract has a 'due diligence fee' rather than just earnest money, the due diligence fee is typically:
AA. Refundable upon the buyer's termination of the contract for any reason during the due diligence period
BB. Non-refundable to the seller regardless of why the buyer terminates during due diligence✓ Correct
CC. Applied to closing costs only
DD. Held in escrow by the county clerk
Explanation
Under GAR contracts, a due diligence fee paid by the buyer to the seller is non-refundable and goes directly to the seller. The buyer retains the right to terminate during the due diligence period, but the fee is not returned.
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