Is the South Carolina due diligence period confusing you as a buyer or seller in Central? You are not alone. Between fees, deposits, timelines, and inspections, it can feel like a lot. The good news is that once you understand how South Carolina’s system works, you can use it to protect your interests and keep your move on track. This guide breaks down due diligence in plain language, with local tips for Central and Pickens County so you feel prepared from offer to close. Let’s dive in.
What due diligence means in South Carolina
In South Carolina, most residential purchase contracts include a negotiated due diligence period. This is a set window where you can fully investigate the property and decide whether to move forward. During this time, you may terminate for any reason if you follow the contract’s notice rules.
You will often see three pieces working together in SC contracts: the due diligence period, a due diligence fee paid to the seller, and earnest money held in escrow. Understanding how these interact helps you structure a strong offer and avoid costly mistakes.
Due diligence fee vs. earnest money
Due diligence fee
- A negotiated cash payment from buyer to seller at contract signing.
- Compensates the seller for taking the home off the market while you investigate.
- Typically non-refundable after the due diligence period ends unless your contract says otherwise.
Earnest money
- A separate deposit that goes to a broker’s trust account or a closing attorney’s escrow.
- Applied to your purchase at closing.
- If you terminate properly within the due diligence period, your earnest money is typically returned per the contract.
How they work together
- If you cancel during due diligence, you usually receive your earnest money back, but the seller keeps the due diligence fee.
- After due diligence ends, your right to cancel is limited to specific contingencies in the contract (like financing or seller breach). If you default, the seller may keep your earnest money and pursue remedies.
Typical timelines in Central
Timelines are negotiable, but here is what you can expect in Central and greater Pickens County:
Due diligence length
- Common range: 7 to 21 days.
- Shorter windows (7 to 10 days) are common when the market is competitive or you are paying cash.
- If the property has a septic system, private well, or needs specialist inspections, build in extra time.
Due diligence fee amounts
- Often a few hundred to a few thousand dollars in smaller or less competitive markets.
- In Central, fees often lean lower to moderate compared with urban markets, but higher fees can appear in multiple-offer situations.
Earnest money
- Common amounts: $1,000 to $5,000 or about 1 to 2 percent of the price, depending on price point and local custom.
- Typical timing: delivered within 1 to 3 business days after the contract’s effective date, per your contract.
Financing and appraisal
- Financing contingency windows often run 21 to 30 days.
- Appraisals are usually completed during this same period. Allow time for scheduling and any negotiations if the appraisal value comes in low.
Contract-to-close timing
- Most closings fall in the 30 to 60 day range, depending on your lender and title work. Cash purchases can close faster.
A simple timeline example
- Day 0: Offer accepted and contract becomes effective. Due diligence begins. Due diligence fee delivered to seller per contract.
- Day 1 to 10: General home inspection, termite/pest inspection, septic and well evaluations if applicable, HVAC and roof checks, title order, survey request, and loan application.
- By Day 3: Earnest money delivered to escrow if your contract requires it by then.
- Day 7 to 21: Review inspection results, request repairs or credits, and decide whether to move forward or terminate within due diligence.
- Day 30 to 45: Close, subject to lender and attorney timelines.
What to do during due diligence
Order core inspections
- General home inspection
- Wood-destroying insect inspection
- Septic system inspection and pump check where applicable
- Well water quality test where applicable
- HVAC, roof, and structural evaluations as needed
- Radon test if desired
Review title and records
- Ask your closing attorney to provide a title commitment and review exceptions.
- Confirm the legal description and any deed restrictions.
- Consider owner’s title insurance.
Confirm financing and insurance
- Complete loan application and provide documents promptly.
- Track appraisal timing and prepare for value discussions if needed.
- Check flood zone status and potential insurance requirements.
Document everything
- Keep all notices and requests in writing and delivered as your contract requires.
- Track dates and deadlines on a shared calendar with your agent and attorney.
Negotiation playbook in Central
You can shape your offer with several levers. In Central’s market, buyers and sellers often negotiate these items together:
- Due diligence period and fee: A shorter period paired with a larger fee can strengthen an offer. A longer period might require a higher fee to compensate the seller for time off market.
- Earnest money: You can negotiate the amount, delivery timing, and escrow holder (often the listing broker or closing attorney).
- Repairs vs. credits: After inspections, you can request seller repairs, a credit at closing, or a price adjustment. Sellers may agree, counter, or decline. You can then decide to proceed or terminate within the due diligence period.
- Financing and appraisal: If the appraisal is below the contract price, options include a price reduction, the buyer bringing cash to cover the gap, or a split solution. Your contract’s financing or appraisal terms guide what is allowed.
- Closing date and occupancy: You can align the closing date with the seller’s move. Temporary occupancy or rent-back can be negotiated and documented.
Local factors in Pickens County
- Septic and wells: Many homes outside town centers rely on septic systems and private wells. Plan for pump-and-inspect reports and water quality testing.
- Radon and moisture: Parts of the Upstate see radon and humidity-related issues. Tests are affordable and common.
- Floodplain checks: Verify flood zone status early to avoid insurance surprises.
- HOA documents: Some neighborhoods near Central have HOAs. Request bylaws, financials, rules, and any special assessments during due diligence.
- Attorney closings: In South Carolina, closing attorneys handle title, escrow, and documents. Choose your attorney early to keep the file moving.
How buyers protect their interests
Use this quick checklist to stay organized.
- Set the right due diligence length and fee for the property type and market. Allow extra time if septic, well, or specialty inspections are needed.
- Hire licensed local inspectors and specialists. Book early to avoid delays.
- Order title work and review exceptions with your closing attorney. Ask questions in writing.
- Verify flood zone status and insurance needs. Plan for lender requirements.
- Confirm financing timelines with your lender. Align your financing contingency with appraisal timing.
- Review seller disclosures carefully. Ask follow-up questions in writing.
- Track all dates. Send repair requests and notices before your deadlines.
- If you terminate within due diligence, follow the contract’s steps exactly so your earnest money is handled properly.
How sellers protect their interests
A little preparation makes your sale smoother.
- Complete required disclosures fully and early. Respond to buyer requests in a timely way.
- Expect negotiation on the due diligence period and fee. Understand that longer due diligence may call for a higher fee.
- Consider pre-listing repairs or inspections if your property is older or has septic or well systems. This can reduce surprises and speed up negotiations.
- Keep receipts and documentation of maintenance and improvements. Clear records help resolve inspection questions.
- Coordinate closely with your listing agent and closing attorney to handle title items and deliver documents on time.
Key documents and deadlines to track
- Contract effective date (starts the clock)
- Due diligence end date and time
- Earnest money deposit deadline and escrow holder
- Financing contingency and appraisal deadlines
- Title commitment delivery and survey timing
- Closing date and any occupancy agreements
When issues arise: common scenarios
- Inspection findings: If an inspection reveals a major repair, you can request a seller repair or closing credit. If you cannot reach agreement, you may terminate within the due diligence period according to your contract.
- Low appraisal: Options include a price adjustment, the buyer adding cash, or a shared split. Your financing or appraisal clause controls the outcome.
- Title problems: Encroachments, easements, or liens may appear in the title work. Attorneys often resolve these with releases or curative documents. If not, parties may negotiate a credit or extension, or decide to cancel per the contract.
Local resources to know
- Pickens County Register of Deeds for deed and public records
- Pickens County Assessor and GIS for tax data and mapping
- Pickens County Environmental Health or Building Codes for septic and well records
- FEMA Flood Maps for flood zone checks
- Closing attorneys who handle South Carolina real estate transactions
- Licensed home, septic, well, WDI, HVAC, roof, structural, and radon inspectors
Work with a local guide
Every deal is different, and your contract language controls the outcome. A local, hands-on approach helps you structure timelines and fees that fit your goals, choose the right inspections, and keep your file on schedule with your lender and closing attorney.
If you want a clear plan for due diligence in Central, I am here to help. Reach out to Svenja Martin to map out a smart timeline, align your contract dates, and connect with vetted local pros.
FAQs
What is the due diligence period in South Carolina?
- It is a negotiated window in the contract that lets you inspect and decide whether to proceed, with the right to terminate for any reason if you follow notice rules.
How is the due diligence fee different from earnest money?
- The due diligence fee is paid to the seller and typically becomes non-refundable after the period ends, while earnest money is held in escrow and may be refunded if you terminate properly within due diligence.
How long should due diligence be in Central, SC?
- Commonly 7 to 21 days, with longer windows for septic, well, or specialty inspections and shorter windows in more competitive situations.
How much earnest money is typical in Pickens County?
- Often $1,000 to $5,000 or about 1 to 2 percent of the purchase price, depending on price point and local custom.
Who holds earnest money in South Carolina?
- Typically the listing brokerage or a closing attorney holds earnest money in a trust account named in the contract.
What happens if the appraisal comes in low?
- You can renegotiate price, the buyer can add cash to cover the difference, parties can split the gap, or a contingency may allow cancellation according to the contract.
