Georgia Due Diligence Period Explained: What Every Kennesaw Buyer and Seller Needs to Know
Georgia's Due Diligence period is a negotiated window in the GAR Purchase and Sale Agreement during which the buyer can inspect, research, and exit the contract for any reason — and recover their earnest money in full. The length is not set by law; it's agreed upon by the buyer and seller at the time of contract. In the current Cobb County market, most residential contracts run 7–10 days for standard resale homes, with competitive offers sometimes shortening that to 3–5 days and complex or older properties running 10–14 days. Missing the deadline — even by a single day — means the buyer forfeits their earnest money.
If you're buying or selling a home in Kennesaw, Marietta, or Acworth, the Due Diligence period is the most consequential clause in your contract. It determines how much time the buyer has to investigate the property, what happens to their money if they walk away, and — for sellers — how exposed you are to a contract falling apart after you've taken your home off the market.
Most buyers understand the general concept. Far fewer understand the specifics. And those specifics matter — especially in a market where inspection findings, appraisal gaps, and insurance surprises are more common than they were two years ago.
Here's how the Due Diligence period actually works in a Georgia GAR contract, and what both sides need to know before they sign.
How the Due Diligence Period Works for Buyers
The moment both parties sign the contract and it becomes binding, the Due Diligence clock starts. During this window, the buyer has the legal right to:
- Schedule a home inspection — general, plus any specialty inspections (roof, HVAC, sewer scope, radon, etc.)
- Research HOA documents, financial health, and governing rules
- Review any title issues or encumbrances
- Evaluate total carrying costs — taxes, insurance, HOA — against their budget
- Simply change their mind
That last point is what makes Georgia's Due Diligence period distinctive. It's not just an inspection contingency. The buyer can terminate for any reason at all — they don't have to cite a specific defect, produce an inspection report, or justify the decision. A written termination notice delivered to the seller or seller's agent before the deadline ends is all it takes.
If they cancel properly and on time, the earnest money returns to the buyer in full. The Due Diligence fee, however, does not — that goes to the seller regardless of outcome.
Due Diligence Fee vs. Earnest Money — Why They're Not the Same Thing
This is where a lot of buyers and sellers get confused, and where negotiating strategy diverges significantly.
Typically 1–2% of purchase price. Held in escrow by the closing attorney. Returned to the buyer if they cancel during Due Diligence. Forfeited if the buyer defaults after Due Diligence without a valid contractual reason.
Typically 0.1–0.5% of purchase price. Paid directly to the seller at contract execution. Non-refundable regardless of outcome — the seller's compensation for taking the home off the market during the investigation window.
On a $500,000 home in Cobb County, earnest money typically runs $5,000–$10,000. The Due Diligence fee is roughly $500–$2,500 paid directly to the seller at signing.
For sellers evaluating competing offers, a higher Due Diligence fee from one buyer can meaningfully offset a slightly lower purchase price — especially when failed contracts during Due Diligence cost re-listing momentum and market time.
What Happens After the Inspection — The Amendment to Address Concerns
If the buyer's inspection surfaces issues they want addressed, the formal path in Georgia is the Amendment to Address Concerns — the standard GAR form used to request repairs, credits, or concessions from the seller.
Here's what sellers need to understand: you are not required to agree to any of it.
The GAR contract defaults to as-is. The seller disclosed known material defects in the Seller's Property Disclosure Statement (GAR Disclosure) before going under contract. Once a buyer submits an Amendment to Address Concerns, the seller has three options:
- Agree — make the requested repairs or issue a credit at closing
- Counter — offer a partial remedy or a lesser credit
- Decline — say no to everything and let the buyer decide whether to proceed or cancel
If the seller declines and the buyer is still within their Due Diligence window, the buyer can walk away and recover their earnest money. If the Due Diligence period has already expired, the buyer's ability to cancel without penalty is significantly limited.
This is why the timing of inspection results and repair negotiations matters so much. A buyer who receives inspection results on day 6 of a 7-day Due Diligence period has almost no room to negotiate — they have to decide quickly whether to cancel, accept as-is, or submit a repair request knowing the seller can simply say no.
What Sellers Need to Know Before Accepting an Offer
For sellers, the Due Diligence period represents real exposure — and it's often underestimated.
Every day your home is under contract during Due Diligence, you're off the market. Other buyers move on. If the contract falls apart on day 9, you re-list with a failed transaction on record. In a market where rising carrying costs are already tightening buyer budgets, fewer buyers are in the pool to replace a cancelled contract quickly.
Three things sellers can do to reduce Due Diligence risk:
Get a pre-listing inspection. When you know what's on the inspection report before the buyer does, you control the narrative. You've already priced for the items you won't fix, disclosed what's known, and eliminated the element of surprise. Buyers who get an inspection report that matches what they expected are far more likely to proceed.
Negotiate the Due Diligence period length. In a competitive offer situation, a shorter Due Diligence period meaningfully reduces your exposure window. Pair it with a higher Due Diligence fee to compensate the buyer for the tighter timeline.
Decide your repair position in advance. You don't have to fix anything the buyer requests. But knowing which items are likely to come up — and deciding your position before you receive the Amendment — puts you in a far stronger negotiating posture than reacting under pressure.
Frequently Asked Questions
Can a buyer cancel during Due Diligence for any reason in Georgia?
Yes. Under the standard GAR Purchase and Sale Agreement, a buyer can terminate the contract during the Due Diligence period for any reason — they don't have to specify a defect or provide documentation. Written notice delivered before the deadline is all that's required, and the earnest money returns to the buyer in full. The Due Diligence fee paid to the seller at signing, however, is non-refundable.
What is a typical Due Diligence period length in Kennesaw and Marietta?
In the current Cobb County market, most resale contracts include a 7–10 day Due Diligence period. Competitive multiple-offer situations often see periods as short as 3–5 days. Older homes or properties with known complexity may run 10–14 days. The period is fully negotiable — there is no state-mandated minimum or maximum.
What is the Amendment to Address Concerns in Georgia?
The Amendment to Address Concerns is the standard GAR form used by buyers to formally request repairs, credits, or concessions from the seller after a home inspection during the Due Diligence period. Sellers are not required to agree to any requests — the GAR contract defaults to as-is, and the seller can decline, counter, or accept. If the seller declines and the buyer is still within their Due Diligence window, the buyer can walk away and recover their earnest money.
What's the difference between the Due Diligence fee and earnest money?
Earnest money (typically 1–2% of purchase price) is held in escrow and returned to the buyer if they cancel during Due Diligence. The Due Diligence fee (typically 0.1–0.5%) is paid directly to the seller at contract execution and is non-refundable regardless of outcome — it's the seller's compensation for taking the home off the market. Both amounts are fully negotiable in the GAR contract.
What happens if a buyer misses the Due Diligence deadline?
Missing the Due Diligence deadline — even by a single day — eliminates the buyer's right to cancel and recover their earnest money. At that point, the buyer's ability to exit without penalty depends on other contingencies (financing, appraisal). If none apply and the buyer defaults, the earnest money goes to the seller. This is one of the most common and costly mistakes buyers make in Georgia transactions.
Georgia's Due Diligence period gives buyers real protection and sellers real exposure. Navigating it well — the right period length, the right fee structure, the right response to inspection findings — can be the difference between a smooth transaction and a failed contract that costs everyone time and money.
Have questions about Due Diligence in your specific transaction?
Robert Masoudpour — Associate Broker, Atlanta Communities - West Cobb
About Robert Masoudpour
With over 20 years of real estate experience, Robert Masoudpour is an Associate Broker and REALTOR® with Atlanta Communities - West Cobb. He serves clients throughout Marietta, Cobb County, and the broader North Atlanta metro area, focusing on strategic home selling, expert buyer representation, and relocation services. Backed by a trusted local network and deep market knowledge, Robert provides the honest, data-driven guidance buyers and sellers need to make confident real estate decisions.
