Escrow & Title
In a NC transaction, the 'earnest money deposit' vs. the 'due diligence fee' — which is refundable if the buyer terminates during due diligence?
ABoth are refundable
BThe earnest money is refundable; the due diligence fee is not✓ Correct
CThe due diligence fee is refundable; the earnest money is not
DNeither is refundable
Explanation
Under the NC Offer to Purchase, if the buyer terminates during the due diligence period, the earnest money is refunded but the due diligence fee is retained by the seller.
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