Georgia Due Diligence: What Athens Buyers Should Know

You go under contract, the clock starts ticking, and every decision matters. That is Georgia’s due diligence period in a nutshell. If you are buying in Athens, you want to use this time to uncover risks, line up inspections, and negotiate from a position of strength. In this guide, you will learn how due diligence works in Georgia contracts, what timelines and fees to expect, the right inspections for Athens properties, and how to protect your earnest money while keeping your offer competitive. Let’s dive in.

What due diligence means in Georgia

In Georgia, most buyers and sellers use Georgia Association of REALTORS (GAR) residential forms. These contracts typically include a Due Diligence Period, a Due Diligence Fee, and Earnest Money. Your specific rights and deadlines depend on the exact language you sign, so always read your contract closely and rely on your agent and attorney for interpretation.

The three moving parts

Due Diligence Period (DDP): A set number of calendar days after contract execution when you may investigate the property and terminate for any reason, as long as you give written notice before the deadline.
Due Diligence Fee (DDF): A negotiated, typically nonrefundable fee paid directly to the seller when the contract is executed. It compensates the seller for taking the home off the market during the DDP.
Earnest Money (EM): A deposit held in escrow per the contract. If you terminate properly within the DDP, earnest money is commonly returned to you under standard GAR practice, while the seller keeps the DDF.

How funds typically flow

If you terminate during the DDP with proper written notice, the seller usually keeps the DDF and you usually receive your earnest money back per typical GAR handling. Confirm your contract.
If you do not terminate on time and later default, the seller may be entitled to your earnest money and other remedies per the contract. The seller already keeps the DDF.
If you close, the DDF is often credited at closing toward the purchase price or your closing costs, even though the seller earns it upon contract execution.

How long your DDP should be

Across Georgia, 7 to 21 days is common. In many Athens transactions, 7 to 14 days covers general inspections. If a home is older, has septic, or needs specialty evaluations, you may want 14 to 21 days. Your inspection schedule, lender timeline, and market speed should drive your decision.

Key factors to consider:

Lender schedule: Mortgage underwriting and appraisal often run past short DDPs. If you want DDP protection against lender delays, ask for enough time or include solid financing language.
Inspection access: Specialist availability (sewer scope, structural engineer, radon, mold) can require more days.
Property complexity: Historic homes, older systems, or septic properties usually justify a longer DDP.
Market conditions: In faster Athens submarkets, sellers may prefer shorter DDPs and larger DDFs. Balance competitiveness with protection.

Choosing the due diligence fee

The DDF is fully negotiable. It can range from a few hundred dollars to several thousand dollars depending on price point and competitiveness. A shorter DDP and higher DDF can strengthen your offer. A longer DDP and lower DDF gives you more protection. Talk with your agent about the right tradeoffs for your situation.

Inspections Athens buyers should prioritize

A smart inspection plan is the heart of your due diligence. Start with the general home inspection, then add targeted inspections based on age, location, and what your inspector flags.

Core inspections for most Athens-area homes:

General home inspection that covers structure, roof, electrical, plumbing, and HVAC
Wood-destroying insect (termite) inspection and report
Sewer line camera scope if the home is older or has large trees nearby
Mold and moisture evaluation if you see water stains, musty odors, or prior leaks
Radon testing, since the Atlanta region and parts of Georgia see measurable radon
Lead-based paint considerations for homes built before 1978
Asbestos or insulation testing when mid-century homes are slated for renovation

Athens-specific considerations:

Soils and foundations: Northeast Georgia clay can affect settlement and drainage. Consider a foundation assessment and grading review if you see cracking or pooling water.
Older housing and historic areas: Neighborhoods near UGA and in classic districts often feature older systems and potential preservation requirements for exterior changes.
Septic systems: If the property is on septic, request septic records and plan a septic inspection. Coordinate with Clarke County Environmental Health for verification.
Flooding and floodplain: Review flood mapping and consider elevation certificates and flood insurance quotes if needed.
Utilities: Confirm water and sewer connections, tap fees, and any municipal requirements through Athens-Clarke County Utilities.

Records to review locally:

Seller disclosures and recent utility bills
Athens-Clarke County property tax records and parcel history
Existing survey or recorded plat, plus any easements
Permit and code history with the local Building and Planning departments
If in a historic overlay, check Athens Historic Preservation Commission guidelines

A smart 10 to 21 day timeline

You want to sprint early, then leave time to evaluate results and negotiate. Here is a practical planning model you can adapt to a 10 to 21 day DDP.

Day 0: Contract executed. Pay the DDF and deposit earnest money per the contract. Mark your DDP deadline and delivery method for notices.
Days 1 to 2: Order the general home inspection. Book termite, sewer scope, and any critical specialty inspections (septic, structural) immediately.
Days 3 to 6: Complete general inspection and priority specialty inspections. Start a radon test if desired.
Days 7 to 10: Receive reports, price repairs, and review records. If issues are significant, prepare your repair requests or credit ask.
Final DDP day: Either deliver written termination before the deadline, or confirm you are moving forward and shift focus to appraisal and lender milestones.

Adjust the intervals if you have a shorter or longer DDP. The key is to schedule everything in the first 48 hours and leave buffer time for analysis and negotiation.

Termination rights and deadlines

During the DDP, you have a broad right to terminate for any reason. To use that right, deliver written notice per your contract before the deadline. If you terminate properly during the DDP, the seller typically keeps the DDF and your earnest money is usually returned under standard GAR practice. Always confirm your contract terms and coordinate with your agent and closing attorney.

How to deliver notice correctly:

Use a written, dated termination notice that references your contract and DDP expiration.
Follow the contract’s allowed delivery methods, such as email or hand delivery, and meet the specified deadline.
Keep proof of delivery and agent notes for your records.

After the DDP ends, your unilateral termination right ends. You may still have separate protections under loan and appraisal contingencies if they are part of your contract and within their own deadlines. If you fail to terminate properly or default, you risk losing earnest money and facing other contract remedies.

Negotiating with confidence in Athens

Sellers value certainty of closing, reasonable DDP length, the size and firmness of the DDF, proof of financing strength, and the overall price. In areas with higher demand, strong offers often pair a shorter DDP with a more meaningful DDF and clear financing strength.

Buyer strategies:

Competitive approach: Shorten DDP to about 7 days and increase DDF, while keeping earnest money appropriate. Pre-identify inspectors so you can complete inspections quickly.
Balanced approach: Ask for 10 to 14 days and a moderate DDF. Schedule immediately and prioritize roof, foundation, sewer, and any obvious system concerns.
Risk-aware approach: Seek 14 to 21 days with a modest DDF for older homes or septic properties. Align your loan and appraisal timelines and be ready to negotiate credits for repairs.

Inspection negotiation tactics:

Use inspection reports to request targeted repairs or a closing credit. Credits are often simpler and keep the closing on track.
For properties in historic overlays, ask about likely approvals early so you can make realistic requests.

Other levers that can help:

Larger earnest money can signal commitment once the DDP ends.
Appraisal gap coverage may help in a bidding situation if your lender and budget allow it.
Provide a strong pre-approval or proof of funds to reduce seller anxiety about financing.

Practical due diligence checklist

Immediate actions after contract execution:

Confirm the DDP expiration date and delivery methods for notices in writing.
Pay the DDF and deposit earnest money per the contract.
Order your general home inspection within 24 to 48 hours.
Schedule termite, sewer scope, septic, and any structural or moisture inspections immediately.

Inspection priorities:

General home inspection
Termite and wood-destroying insect inspection
Sewer camera scope for older lines or heavy tree roots
Septic inspection and permit check if applicable
Roof and chimney inspection when age or condition is unclear
HVAC, electrical, and plumbing specialists if the general inspector flags issues
Radon test if you plan long-term occupancy
Mold and moisture assessment where stains or odors appear
Structural engineer review for major cracks or settling

Records to request and review:

Seller disclosure forms
Recent water and sewer bills
Permit history for renovations and additions
Existing survey or recorded plat and easement documents

Local resources to contact:

Athens-Clarke County Building, Planning, and Utilities for permits, zoning, and service connections
Clarke County Environmental Health for septic records
FEMA flood mapping resources and local floodplain information
University of Georgia Extension guidance on radon and soils

Ready to move in Athens?

Due diligence is your window to verify, prioritize, and negotiate. When you plan the right inspections, track deadlines, and use GAR contract tools well, you protect your money and set up a smoother closing. If you would like a local strategy that fits the home you are eyeing, reach out to Michelle Farmer for step-by-step guidance through due diligence and closing.

FAQs

What is the due diligence period in Georgia?

It is a negotiated window in your contract when you can inspect the property and terminate for any reason by delivering written notice before the deadline.

How is the due diligence fee different from earnest money?

The DDF is usually nonrefundable and paid to the seller at execution, while earnest money is held in escrow and is commonly returned if you terminate properly during the DDP.

How many days do Athens buyers usually need for inspections?

Many buyers request 7 to 14 days, and 14 to 21 days for older homes, septic properties, or when specialist inspections are needed.

Can I get earnest money back if I terminate during due diligence?

Under standard GAR practice, yes, if you give proper written notice before the deadline, the seller keeps the DDF and your earnest money is usually returned per the contract.

What inspections are most important for older homes near UGA?

Start with a general inspection, termite, and sewer scope, then add foundation, moisture or mold, radon, and roof evaluations based on findings.

How do I properly deliver a termination notice in Georgia?

Use the contract’s required written notice form, deliver it by permitted methods before the DDP deadline, and keep proof of delivery.

Should I ever waive due diligence in a competitive Athens market?

Only if you clearly understand the risks, have pre-inspected, or accept the property as-is, since waiving the DDP removes a major protection.