As a buyer, you need time to check the home and ensure it’s a good investment. The Review period gives you that opportunity. This set time, outlined in the Offer to Purchase, lets you schedule inspections, appraisals, loan approvals, and property surveys.

Along with the due diligence time, you have a Evaluation fees. The due Evaluation fees is a negotiable, non-refundable fee a buyer may pay for the negotiated Evaluation time period. The Evaluation fees is paid directly to the seller.

Before the end of the Evaluation period, the buyer has the right to terminate the contract for any reason or no reason at all, while the seller remains bound by the terms of the contract.

While the Evaluation  period is non-refundable, except in the event a seller breaches the contract, the Evaluation fees is typically credited to the buyer at closing.

The buyer gives earnest money to show good faith. The amount is negotiable. Buyers usually pay it to a listing agent or attorney’s escrow account. If you don’t default, it covers closing costs or your down payment.

If the deal falls through, the Offer to Purchase decides your earnest money refund. Buyer and seller must agree before the firm releases the money.

The contract states the final decision on Due Diligence and Earnest Money​. Both fees are negotiable but not mandatory. Ask your real estate professional about current market trends for these fees.