Real estate contracts are quite lengthy and detailed – all for good reason. So why would North Carolina’s”Offer To Purchase and Contract” include three important dates and not the actual closing date?How can this be? Read on to learn more!

Let’s begin by outlining what dates are specifically asked for in the contract: the Effective Date, the Due Diligence Period and the Settlement Date.

The “Effective Date” is when all parties (buyers and sellers) have signed the contract. This is what makes the contract legally binding. Let’s say the buyer signs the contract on a Friday; negotiations continue through the weekend; and then the sellers sign the contract on the Sunday. Regardless of when the first group signed the contract, the effective date is the last date it was signed. In this example, the effective date for the contract is the Sunday date, even though the buyers signed it days earlier. The effective date is the official commencement for the contract and the due diligence period.

The “Due Diligence Period” date is when the property-investigation/repair-negotiation/contract-termination/return-of-earnest-money-deposit all expire. All negotiations for repairs or seller credits to the buyer must be negotiated before this date. If the buyer choses to withdraw from the purchase before 5pm on the due diligence expiration date, they may be entitled their earnest money deposit back.

The “Settlement Date” is when all necessary closing documents have been initialed, signed and returned to the closing attorney. “Closing” is when the deed has recorded and funds distributed by the attorney. It is quite possible that settlement (signing) and closing (deed recording – thus officially owning the property) occur on different dates. Since the closing can be somewhat of a moving target, the date is not firmly written into the purchase contract.

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If you are interested in finding out how I can assist you with your real estate needs, click this Calendly Link to book time for us to chat.

Relocating to the Cary area? Click here for the Cary Relocation Guide.

Thinking of selling your home? Click here for the Seller’s Guide.

Learn More:

• Click here to learn more about the Due Diligence Fee.
• Click here to learn more about the Earnest Money Deposit.
• Click here to learn more about the benefits of having a buyer’s agent.
• Click here to learn more about the benefits of having a seller’s agent.

Happy Home Buying & Selling In North Carolina!