What is the due diligence period in Georgia? In Georgia, the due diligence period is a negotiated window of time — typically 7 to 10 days — during which a buyer can investigate a property and terminate the contract for any reason. If the buyer walks away before the deadline with proper written notice, their earnest money is typically returned. The non-refundable due diligence fee, however, stays with the seller.
Introduction
You’ve made an offer. The seller accepted. Now comes one of the most critical — and most misunderstood — phases of buying a home in Georgia: the due diligence period.
If you’re buying a home in Newnan, Sharpsburg, Senoia, or anywhere in Coweta County, you need to understand exactly how the due diligence period works before you sign a contract. Miss a deadline by even one day and you could lose your earnest money. Misunderstand the difference between the due diligence fee and earnest money, and you might be surprised by what you get back — or don’t — if something goes wrong.
Georgia’s process is different from most states. Unlike states that tie inspection contingencies to specific findings, Georgia gives buyers a clean “free look” window. You can terminate for any reason — no explanation required. That flexibility is powerful, but only if you use it correctly.
I’m Mark Robertson, REALTOR® with the R&R Team at Berkshire Hathaway HomeServices Georgia Properties, and I’ve walked hundreds of buyers through this exact process in the Coweta County market. Here’s everything you need to know.
How the Due Diligence Period Works in Georgia
The Clock Starts on the Binding Agreement Date
In Georgia, the due diligence period begins on the Binding Agreement Date — the date both the buyer and seller have signed and delivered the fully executed contract. That’s Day 1. If your contract says you have 10 days of due diligence, that means Day 10 is your deadline, and written notice of termination must be delivered to the seller (or their agent) before that deadline expires.
This is not the day you made your offer. It’s not the day the seller verbally agreed. It’s the date of the fully executed contract in writing. In the current Coweta County market — where homes are taking an average of 76 days to go under contract, but move quickly once they do — buyers sometimes get confused about when the clock actually starts. Confirm your Binding Agreement Date in writing with your agent immediately.
What the GAR Contract Says
Most home purchases in Georgia are governed by the Georgia Association of REALTORS® (GAR) Residential Purchase and Sale Agreement. Under the standard GAR contract, the due diligence period length is negotiated between buyer and seller. There is no state-mandated number of days.
Typical ranges in the Newnan/Coweta County market:
- Competitive or lower-priced properties: 5–7 days
- Standard residential sales: 7–10 days
- Complex properties (older homes, large acreage, significant systems): 10–14 days
In a competitive offer situation, buyers sometimes reduce their due diligence period to make their offer more attractive to sellers. That’s a strategic decision — and one worth discussing carefully with your agent before you write it into the contract.
Due Diligence Fee vs. Earnest Money: Know the Difference
This is the question I get most often from buyers, and it’s one of the most important things to understand before you sign anything.
The Due Diligence Fee
The due diligence fee is paid directly to the seller — not held in escrow. It compensates the seller for taking their home off the market while you conduct your investigation. It is non-refundable, period. If you terminate the contract during the due diligence period for any reason — even a legitimate one — the seller keeps it.
Think of it as the price of your free look. In the current Coweta County market, due diligence fees typically range from a few hundred dollars on lower-priced properties to $1,000–$2,500+ on higher-priced listings. The amount is negotiated and included in the contract.
Earnest Money
Earnest money is held in escrow — typically by the listing broker or a title company — and applied toward your purchase price at closing. If you properly terminate the contract before the due diligence deadline with written notice, your earnest money is returned to you.
If you miss the deadline and try to terminate after, you typically lose your right to a no-explanation exit, and your earnest money may be at risk depending on whether another contract contingency covers your situation.
| Due Diligence Fee | Earnest Money | |
|---|---|---|
| Paid to | Seller directly | Held in escrow |
| Refundable if terminate in time? | No | Yes |
| Refundable if terminate late? | No | Generally No |
| Applied to purchase price at closing? | Sometimes (negotiated) | Yes |
What to Do During Your Due Diligence Period
Day 1–2: Book Your Inspections Immediately
The moment your contract is executed, call your home inspector. The best inspectors in the South Metro Atlanta area book out 3–5 days in advance. Don’t wait.
Standard inspections to schedule:
- General home inspection — covers structure, roof, electrical, plumbing, HVAC, and more
- Termite/pest inspection — essential in Georgia; termite pressure is real in Coweta County
- Radon test — less common in Coweta County than in north Georgia, but worth the $125–$250
- Sewer scope — especially for homes 20+ years old ($250–$400)
- Pool inspection — if the property has a pool ($200–$400)
Day 2–5: Review the Seller’s Disclosure
Georgia sellers are required to complete the GAR F301 Seller’s Property Disclosure Statement, which discloses known material defects and issues. Review this document carefully with your agent. Remember: Georgia is a buyer beware state. The seller’s obligation is to disclose what they know. It’s your job to discover what they may not know — or may not have disclosed.
Day 5–8: Review Title, HOA Documents, and Survey
If the home is in an HOA community — like many newer neighborhoods in Newnan and Sharpsburg — request the HOA documents immediately. Review any transfer fees, restrictions, rules, and financial health of the association. Title review should also be initiated during this window.
Day 8–9: Negotiate Repairs or Credits
Once you have inspection results in hand, you and your agent can request repairs or a price reduction from the seller. In Georgia, any agreed-upon repair requests are typically memorialized in a separate Amendment to Address Concerns form. This is not automatic — it requires negotiation and a signed agreement.
Your inspection results do not give you the automatic right to demand repairs. You have the right to terminate. Repairs are negotiated.
Day 10 (or Final Day): Terminate or Proceed
If you’ve decided the property isn’t right for you, written notice must be delivered before midnight on your final due diligence day (confirm exact deadline language in your contract). Your agent will submit this to the listing agent in writing.
If you’re moving forward, you simply do nothing — your due diligence period expires and you proceed toward closing.
Common Mistakes Georgia Buyers Make During Due Diligence
1. Waiting too long to book inspections. The clock is running from Day 1. Book inspections the same day your contract is executed.
2. Confusing the due diligence fee with earnest money. You will not get your due diligence fee back. Budget for it accordingly.
3. Missing the written notice deadline. Verbal conversations don’t count. Your agent must deliver written notice of termination before the deadline.
4. Expecting the seller to fix everything. Your inspection results are information, not a repair list the seller is obligated to fulfill. Negotiate strategically, and know when to walk.
5. Not reading the HOA documents. HOA restrictions, special assessments, and financial health issues are discovered here — not at closing.
FAQ: Due Diligence Period in Georgia
Can a buyer back out of a contract after due diligence in Georgia?
Once the due diligence period expires, your unconditional right to terminate is gone. You may still be able to terminate under other contract contingencies (financing, appraisal), but you can no longer walk away without explanation. Attempting to terminate after the deadline without a valid contingency puts your earnest money at risk.
What happens if the seller doesn’t agree to repairs during due diligence?
You have two options: accept the property as-is and proceed to closing, or terminate the contract before your due diligence deadline. There’s no obligation on either side — the seller can decline any repair request, and the buyer retains the right to walk away before the deadline.
How long is the due diligence period for new construction in Newnan, GA?
New construction contracts are typically builder-specific and may differ significantly from standard GAR contracts. Some builders offer little to no traditional due diligence period. Always have a buyer’s agent review a new construction contract before signing — builder contracts are written to favor the builder.
Is the due diligence fee common in all Georgia real estate transactions?
Due diligence fees are common in the Atlanta metro and South Metro Atlanta markets, including Coweta County. The amount and whether it’s applied to the purchase price at closing are negotiated. In slower markets or situations with motivated sellers, buyers sometimes negotiate a lower fee or none at all.
Ready to Buy in Newnan or Coweta County?
Understanding the due diligence period is one of the most important steps to protecting yourself in a Georgia real estate transaction. The rules are straightforward — but the deadlines are unforgiving.
If you’re preparing to buy in Newnan, Sharpsburg, Senoia, Peachtree City, or anywhere in Coweta County, I’d love to walk you through the process before you make an offer. A 20-minute conversation before you’re under contract can save you from costly surprises once the clock is running.
📞 Schedule a free buyer consultation — call or text 678-783-0715.
Mark Robertson is a REALTOR® with the R&R Team at Berkshire Hathaway HomeServices Georgia Properties, serving buyers and sellers across Newnan, Coweta County, Sharpsburg, Senoia, Peachtree City, and the broader South Metro Atlanta area. Call or text 678-783-0715.
Published May 27, 2026. Market data referenced from Redfin and Zillow (April–May 2026). Contract information reflects standard GAR forms as of 2026; always consult your agent and/or a real estate attorney for guidance specific to your transaction.
Jacqui Robertson - Newnan Realtor - Berkshire Hathaway Home Services 
Leave a comment