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What is the difference between due diligence money and earnest money?

Due diligence and earnest money are both deposits made by the buyer to demonstrate a strong interest in purchasing the home. These funds also compensate the seller while the property is inspected and removed from the market. Neither due diligence money nor earnest money is required by law.

What is due diligence money?

Due diligence money is also a type of good faith deposit like earnest money. It’s generally meant to compensate the seller for taking the home off the market during the due diligence period.

How long does it take to pay due diligence money?

Generally, the due diligence money is paid upfront when an agreement is reached for the sale and purchase of a real estate property. This means that the buyer will have between 24 hours to 5 days to make the due diligence money payment. What is the difference between due diligence money and earnest money?

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