Key takeaway
In Georgia the due diligence period is a negotiated number of days, counted from the Binding Agreement Date, during which you can cancel the purchase for any reason or no reason. The Georgia REALTORS contract uses $10 of option money plus any additional option money you offer, not a separate fee, and earnest money comes back to you if you terminate in time.
At a glance
| Length | Negotiated; blank in the form |
|---|---|
| Starts | Binding Agreement Date |
| Option money | $10, plus optional additional option money |
| Earnest money deposit | Within 5 banking days of the Binding Agreement Date |
How the due diligence period works in Georgia
The due diligence period is a clause in the Georgia REALTORS purchase and sale agreement (form F201), the standard purchase contract published by Georgia REALTORS. The rules below come from the 2022 printing of that form. GAR updates its forms, so ask your agent which printing your offer uses; paragraph numbers can move between versions.
It starts on the Binding Agreement Date
The clock runs from the Binding Agreement Date, which is the date the accepting party's acceptance is delivered to the other side. Either party can object to the date within one day of being told it, and the two sides settle it with GAR form F733, the binding agreement date confirmation. Get this date in writing, because every deadline in the window counts from it.
The number of days is negotiated
The form reads "subject to a Due Diligence Period of ___ days from the Binding Agreement Date." There is no default length. You propose a number in the offer, and the seller can accept it or counter. A longer window gives you more time for inspections and quotes; a shorter one can make your offer more attractive to a seller.
It turns the contract into an option
For as long as the period lasts, the agreement is an option contract in which you "may decide to proceed or not proceed with the purchase of the Property for any or no reason." You do not need a failed inspection to walk away. The seller acknowledges $10 of separate payment for granting that option.
You can negotiate repairs inside it
During the period you may ask the seller for an amendment to deal with what you found, such as repairs, a price change or a contribution toward costs. The seller does not have to agree. While you negotiate, your deadline keeps running.
Option money and earnest money: what you pay and what you can get back
The Georgia REALTORS form does not charge a separate due diligence fee. What it uses instead is a small option payment, an optional larger one, and the earnest money deposit, which works differently from both.
| Payment | Paid to | If you terminate during due diligence | At closing |
|---|---|---|---|
| $10 option money | Seller | Kept by the seller (nonrefundable) | Consideration for the option |
| Additional option money (optional) | Seller directly, by check, ACH or wire | Kept by the seller unless closing fails because of seller default | Applied to the price or not, as the contract states, subject to lender approval |
| Earnest money | The holder's escrow or trust account | Returned to you when you terminate under a right the contract gives you | Applied toward the purchase price |
The $10 option money
The form recites that the buyer "has paid Seller $10.00 in nonrefundable option money." It is the legal consideration that makes the option binding. It is not a negotiating chip.
Additional option money
You can offer more option money, paid straight to the seller when the offer is made or within a set number of days. The catch is that it is not refundable unless the sale fails to close because the seller defaults, so only offer an amount you are prepared to lose if you walk away during due diligence.
Earnest money
The holder named in the contract, such as a brokerage or the closing attorney, must deposit the earnest money into its escrow or trust account within five banking days after the Binding Agreement Date, or after receiving it if that is later. If your check bounces or the money arrives late, you have three banking days after notice to fix it. When the closing attorney holds the money, GAR exhibit F510 (and F511) is also required. Georgia law, O.C.G.A. 43-40-20, requires a broker holding earnest money to keep it in a separate, federally insured trust or escrow account at a Georgia financial institution, and bars the broker from claiming it as commission until the deal closes or ends.
What to check during the due diligence period
The form says brokers have no duty to inspect or advise on anything a survey, appraisal, inspection or test could reveal. That makes the items below your job, and the window is when to do them.
Home inspection
A general inspection is the core of most buyers' due diligence. Book it in the first days so you have time for follow-up quotes. Our home inspection guide covers what it includes.
Official Georgia Wood Infestation Report
The form names this report specifically. It covers termites and other wood-destroying organisms and comes from a pest control company, not the home inspector.
Environmental tests
The form lists tests for radon, asbestos, mold, methamphetamine and lead-based paint. Homes with any dwelling built before 1978 also get the GAR Lead-Based Paint Exhibit (F316).
Septic and well
If the home is on a septic system or a private well, a septic inspection and a well water test are both on the form's list.
Stucco moisture test
Homes with stucco or synthetic stucco can be checked with a moisture test. The form lists it separately from the general inspection.
Survey and title search
A survey shows boundaries and encroachments, and a title search shows liens and ownership problems. Problems found early give you time to object or walk away.
Appraisal and loan progress
The appraisal is on the form's list too. Keep your lender moving during the window, but remember the financing contingency is a separate exhibit with its own terms.
Utility bills
Ask for recent utility bills so you can budget real monthly costs, not estimates.
Neighborhood conditions
The form gives the buyer the sole duty to learn about conditions around the home, such as nearby landfills, quarries, power lines, airports, noise, and land use or transportation plans. It points buyers to the GBI sex offender registry and the DEA clandestine laboratory register. Check school assignments with the district's own lookup, not a listing.
Visiting the property during and after due diligence
You and your inspectors, appraiser and surveyor may enter the property on prior notice at reasonable times to inspect, test, appraise and survey. That right does not end with the due diligence period: you can come back afterward to meet contractors, measure for furniture and confirm agreed repairs, including just before closing. The seller must keep the utilities, systems and equipment on. In return, you must restore any damage your testing causes and hold the seller and brokers harmless.
How to end the contract, and what happens when the period runs out
Send a written notice of termination before the deadline
To use the due diligence right, you must deliver a notice of termination before the period ends. Delivery rules in the contract matter, so send it through your agent in the way the contract requires and keep proof of the time it went out.
If the period ends without a notice, you accept the home as-is
If no termination notice arrives in time, you are treated as choosing to go ahead. You accept the property "as-is" and lose the due diligence right to terminate. A repair amendment still under discussion does not pause the clock.
Backing out after due diligence ends
After the period, walking away needs another basis in the contract, such as an unexpired financing contingency or a seller default. Without one, a buyer who does not close is in default, and the earnest money can go to the seller as liquidated damages.
The financing contingency is separate
Loan contingencies sit in their own exhibits: Conventional F404, FHA F407, VA F410 and USDA-RD F413. Their deadlines are not the same as the due diligence deadline, so put both dates in your calendar.
Contracts with no due diligence period
If an offer has no due diligence period, the property is sold "as-is" with all faults from the start. The seller must still disclose known latent defects that a reasonable inspection would not find.
A due diligence plan for an Acworth purchase
Put the stakes in numbers first. On Acworth's typical home value of $406,860 (Zillow, August 2026), a 3.5% down payment is $14,240.10, and Georgia's average closing costs of 1.24% (Bankrate, 2025) add about $5,045.06, for $19,285.16 before credits. The due diligence window is your last free exit before that money is committed. The closing costs guide breaks the figure down.
- Binding Agreement Date: confirm the date in writing and count the deadline from it.
- Within five banking days: make sure the holder has deposited your earnest money.
- First days: book the general inspection, the wood infestation report and any radon, septic, well or stucco tests that apply.
- Middle of the window: read the reports, get contractor quotes for big items, and review the survey, title findings and utility bills.
- Before the last days: send any repair or price amendment, leaving time for the seller to answer.
- Before the deadline: sign the amendment, or deliver a notice of termination. Doing nothing means you proceed as-is.
If you are still choosing where to buy, the step-by-step guide to buying in Georgia shows where this window falls in the whole purchase.
Due diligence mistakes to avoid
Letting the deadline pass during repair talks
A pending amendment does not extend the period. If the seller has not signed by the deadline, decide whether to terminate or extend in writing.
Counting from the wrong date
The period runs from the Binding Agreement Date, not the day you made the offer or the day the inspection happened.
Expecting the agents to check the property
The form says brokers have no duty to inspect. Order the tests yourself.
Offering option money you cannot afford to lose
Additional option money stays with the seller if you walk away during due diligence. Treat it as spent the day you pay it. I can help you weigh the days and option money in an offer before you send it.
Common questions
How long is a normal due diligence period?+
Georgia has no set length. The Georgia REALTORS purchase and sale agreement leaves the number of days blank, so it is negotiated in each offer and runs from the Binding Agreement Date. A longer period gives you more time for inspections; a shorter one can strengthen an offer. Ask your agent what recent Acworth offers have used before you choose a number.
Can I visit my property during the due diligence period?+
Yes. The Georgia REALTORS purchase and sale agreement lets the buyer and the buyer's inspectors, appraiser and surveyor enter on prior notice at reasonable times to inspect, test, appraise and survey. The right continues after the period ends, for example to meet contractors or confirm agreed repairs. You must repair any damage your testing causes.
What happens if a buyer backs out after the due diligence period?+
The due diligence right to terminate ends with the period, and a buyer who did not send notice in time has accepted the home as-is. Unless another right applies, such as an unexpired financing contingency or a seller default, a buyer who does not close is in default, and the earnest money can go to the seller as liquidated damages.
Is there a due diligence fee in Georgia?+
The Georgia REALTORS purchase and sale agreement does not use a separate due diligence fee. It recites $10 of nonrefundable option money paid to the seller, and lets the buyer offer additional option money paid directly to the seller. That extra money is not refundable unless the sale fails to close because the seller defaults.
Do I get my earnest money back if I terminate during due diligence?+
Under the Georgia REALTORS purchase and sale agreement, the buyer is entitled to the earnest money when the buyer terminates under a specific right in the agreement, and the due diligence period is one of those rights. You must deliver the notice of termination before the period ends. The $10 option money and any additional option money stay with the seller.
When is earnest money due in Georgia?+
The contract states when you deliver it. Under the 2022 printing of the Georgia REALTORS purchase and sale agreement, the holder must deposit it into an escrow or trust account within five banking days after the Binding Agreement Date, or after receiving it if later. If a check bounces or the money is late, you have three banking days after notice to cure it.
Is the due diligence period the same as a financing contingency?+
No. The due diligence period lets you leave for any reason until its deadline. Financing contingencies are separate exhibits to the Georgia REALTORS contract, such as F404 for conventional loans, F407 for FHA, F410 for VA and F413 for USDA-RD, each with its own terms and dates. Track both deadlines.
Sources
Lawrence Jackson
I am a Realtor® with Atlanta Communities and part of Team Jackson Sells Atlanta. I specialize in Acworth, Kennesaw, Marietta and Woodstock and serve all of Cobb County and metro Atlanta. You work directly with me at every step, from your first question to the closing table.
Realtor®, Atlanta Communities. General information, not legal, tax or lending advice.
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