01
What you are paying for
The standard NC REALTORS/NC Bar contract says the fee pays for your right to cancel for any reason during the agreed due diligence period. State law does not require this fee or earnest money, which is a separate deposit usually held in a trust account. The seller can ask for either payment, and your signed contract controls what happens to the money.
02
When you get credit for the fee and when you lose it
If you close, the fee is credited toward the purchase. If you cancel, you generally lose it. The North Carolina Real Estate Commission warns that a loan denial, low appraisal, or bad inspection does not automatically create a refund. The signed contract controls, and there are limited exceptions, such as certain seller breaches.
03
Why the deadline matters
The standard contract does not give you an automatic right to cancel because the loan fails or the appraisal comes in low. You need enough time to inspect the home, negotiate repairs, finish the loan and appraisal work, arrange insurance, and check ownership records. An added contract form can change those rights, so read the documents you sign.
- Schedule the general inspection and any specialist visits as soon as the contract is signed.
- Ask the lender how long the loan and appraisal work will take before you agree to a deadline.
- Get insurance questions answered before your right to cancel expires.
- Track the exact date and time in the contract. Do not rely on a general calendar reminder.