Contracts
If a buyer in NC makes an offer with a due diligence fee of $2,000 and an earnest money deposit of $5,000, and then terminates during the due diligence period, what happens?
AThe buyer receives back both the due diligence fee and the earnest money
BThe seller keeps the due diligence fee; the buyer gets back the earnest money✓ Correct
CThe seller keeps both the due diligence fee and the earnest money
DThe buyer loses the earnest money but gets back the due diligence fee
Explanation
In NC's standard offer to purchase: the due diligence fee is paid directly to the seller and is non-refundable. The earnest money is held in trust and is refunded to the buyer if they terminate before the due diligence deadline.
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