In most states, buying a home comes with a list of contingencies—checkboxes that allow you to back out if the roof leaks or the appraisal comes in low. In North Carolina, we do things differently. We don't have standard contingencies; we have a Due Diligence Period.

For buyers in Wilmington, Hampstead, and Oak Island, this system often leads to confusion about termination fees. You might hear that you can walk away for any reason, but the price of that freedom is specific and often misunderstood. If you don't know the difference between your Due Diligence Fee and your Earnest Money Deposit, you could be leaving thousands of dollars on the table—or losing them entirely.

The Two Checks You Write

When you go under contract in New Hanover or Pender County using the standard Offer to Purchase and Contract (Form 2-T), you typically write two checks. Understanding the difference is your first line of defense.

The Due Diligence Fee (The Termination Fee): This is a non-refundable check written directly to the seller. Think of it as purchasing the exclusive right to inspect the property and the option to terminate the contract for any reason. If you walk away, this money is gone. It is effectively your termination fee.

The Earnest Money Deposit (The Good Faith Funds): This check goes into an escrow account (usually with the closing attorney). This is the money that is at risk after your Due Diligence Period expires.

Myth vs. Reality: Getting Your Money Back

Myth: "If the inspection is bad, I get all my money back."
Reality: In North Carolina, the seller is not legally obligated to make repairs, nor are they required to refund your Due Diligence fee if you find a major issue.

The Rule: If you terminate the contract before 5:00 PM on the Due Diligence Expiration Date, you get your Earnest Money back in full. You do not get your Due Diligence fee back.

The Exception: The only time you typically get both back is if the seller materially breaches the contract or the home is destroyed before closing.

Myth: "I can cancel anytime before closing if my financing falls through."
Reality: This is the most dangerous assumption in our market.

The Hard Deadline: Once the Due Diligence Period ends, your Earnest Money goes hard. If your lender denies your loan one day after that date, you will likely forfeit your Earnest Money to the seller.

Strategic Advice: If you are using a VA or FHA loan, your lender's timeline is critical. You must negotiate a Due Diligence date that gives underwriting enough time to clear the appraisal and loan conditions.

Insider Insight: The New Construction Trap

If you are buying a new build in a master-planned community in Leland or Surf City, be careful. Large national builders often use their own custom contracts, not the standard NC Form 2-T.

No Due Diligence Period: Many builder contracts structure deposits differently. They may label a large portion of your deposit as non-refundable from Day 1, regardless of inspections.

The Upgrade Trap: Money paid for design center upgrades is almost always non-refundable immediately. If you walk away, that money stays with the builder.

Your Next Step

The termination fee in North Carolina is a calculated risk. You need to know exactly how much skin you have in the game before you sign the offer. You need a partner who can negotiate a Due Diligence period that protects your Earnest Money, not just your schedule.

Aspyre Realty Group acts as your safeguards. We are experts in listening and communicating people's wants into homes that work for them. We review the dates, the dollars, and the fine print to ensure you know exactly where your exit ramps are.

Contact Aspyre Realty Group today. Let’s build an offer strategy that keeps your money safe while securing the home you want.