Buying in Raleigh and hearing new terms like due diligence fee, EMD, and Form 2-T? You’re not alone. North Carolina’s standard Offer to Purchase works a bit differently than what many out-of-state buyers expect, and those differences show up right at the start of your offer. The good news is that once you understand the basics, you can make confident decisions and negotiate from a position of strength.
In this guide, you’ll learn how the NC Offer to Purchase and Contract (Form 2-T) works, what the due diligence period really means, and how to line up inspections, financing, and closing in Wake County. You’ll also get Raleigh-specific tips that help you avoid surprises. Let’s dive in.
What the NC Offer to Purchase is
Form 2-T is the statewide, legally binding contract buyers and sellers use in North Carolina. Once the seller accepts your offer, it becomes the purchase agreement and sets the price, key dates, and each party’s responsibilities.
The contract identifies the parties, describes the property, and spells out your purchase price and how you’ll pay it. It also covers deposits, the due diligence period, financing details, inspections, closing terms, and what happens if either party defaults. Your rights and deadlines come from this document, so reading it carefully and following the dates exactly is essential.
Earnest Money vs. Due Diligence Fee
Two upfront payments work together in North Carolina. They are different and have different outcomes.
Earnest Money Deposit (EMD)
- Shows good faith and is typically held in a trust account by the listing broker or the settlement/title company.
- Applied to your purchase at closing.
- If you end the contract during your due diligence period according to the contract, the EMD is usually returned to you. If you default after due diligence ends without a contractual right, the seller may have a claim to the EMD under the contract.
Due Diligence Fee (DDF)
- Unique to North Carolina and paid directly to the seller.
- Buys you the right to terminate for any reason during the agreed due diligence period.
- Credited to your purchase if you close. If you terminate during due diligence, the seller keeps this fee.
Both the amounts and timing are negotiated and written into your offer. In a competitive Raleigh market, sellers may prefer a shorter due diligence period or a higher DDF. In a slower market, you may be able to negotiate more time and a smaller DDF.
Your timeline: offer to closing
Every contract is custom, but this is a typical flow so you know what to expect. Always follow the dates written in your specific contract.
- Day 0: Offer accepted. Your due diligence period begins if the contract says it starts at acceptance.
- Within the first few days: Deliver your due diligence fee to the seller and your earnest money to the agreed holder by the deadlines in the contract. Get written receipts.
- During due diligence: Schedule inspections, review HOA documents if applicable, finalize loan application, order the appraisal through your lender, and review title and any survey with your settlement agent or attorney. If you decide to terminate, you must deliver written notice before the due diligence period expires.
- Before due diligence ends: Complete negotiations on repairs or credits. Decide whether to proceed based on inspections, loan status, and appraisal updates.
- Leading up to closing: Your lender issues final loan approval, your settlement agent finalizes title, and you prepare funds to close. Deed and loan documents will be recorded with the Wake County Register of Deeds on closing.
Inspections and repair talks
Your due diligence period is when you investigate the property and the neighborhood. In Raleigh, common inspections include a general home inspection, termite/pest, HVAC, sewer or septic if applicable, radon, and lead-based paint testing for older homes. If you need a survey, order it early so you have results before the due diligence deadline.
If inspections uncover issues, you and the seller can negotiate repairs or credits. If you cannot reach agreement and you are still within the due diligence period, you can terminate for any reason by delivering written notice before the deadline. After due diligence ends, your ability to cancel depends on specific contract rights that still apply.
For inspector licensing and consumer protections, you can review the North Carolina Real Estate Commission’s consumer resources.
Financing and appraisal in North Carolina
Form 2-T includes a financing section where you specify your loan type and your obligations to apply and cooperate with the lender. Your lender typically orders an appraisal. An appraisal is a lender requirement and is not an automatic contract contingency unless your offer includes a specific appraisal provision.
If the appraisal comes in below the purchase price, you have a few paths: renegotiate with the seller, bring additional cash, or, if your lender cannot approve the loan, follow the contract’s financing terms. For a plain-language overview of appraisals, the CFPB explains what an appraisal is and how it’s used.
A helpful strategy is to align your lender milestones with your due diligence timeline so you can make informed decisions before the due diligence period ends.
Title, survey, and closing in Wake County
In Wake County, closings are commonly coordinated by a settlement/title company or a real estate attorney. Your settlement agent conducts a title exam, helps clear title issues, and prepares closing documents. If you need a new survey, request it early to review setbacks, easements, and encroachments.
On closing day, your deed and loan documents are recorded at the Wake County Register of Deeds. Property taxes and HOA dues are typically prorated as of the closing date. Ask your settlement agent to explain tax prorations, recording fees, and wire instructions so you know your final cash to close.
Fixtures and personal property
The contract should clearly list what conveys with the home. Built-in fixtures generally stay, while personal property does not unless it is included in writing. To avoid last-minute confusion, list included items like refrigerators, washers/dryers, or window treatments in your offer and confirm any exclusions the seller wants to take.
Deadlines, notices, and default basics
Form 2-T enforces deadlines for delivering deposits, giving written notices, and closing. Missing a deadline can change your rights. Always send notices in writing using the methods allowed by the contract and save delivery confirmations.
If a buyer defaults after the due diligence period without a contract right to terminate, the seller may be entitled to retain the due diligence fee and possibly the earnest money, subject to the contract. In some situations, parties can also pursue other remedies. Because outcomes are fact-specific, ask your agent and settlement attorney for guidance.
Common addenda in Raleigh offers
Depending on the property and financing, your offer may include addenda such as:
- HOA or condominium addendum for properties with associations
- Loan-specific addenda for VA or FHA financing
- New construction addenda from builders
- Documents addressing septic, well, or other property systems
Your agent will help you identify which addenda fit your situation and timing.
Raleigh buyer tips that save time
- Plan inspections immediately. Good inspectors book up fast. Front-load the first week of due diligence.
- Confirm who holds your earnest money. Get a receipt and calendar the delivery deadline.
- Read HOA documents early. Understand covenants, dues, and pending assessments before due diligence ends.
- Check utilities and systems. Verify city water and sewer versus well and septic. Ask about stormwater or other municipal fees.
- Ask about flood zones. Some Raleigh areas are in floodplains. Review maps and discuss insurance with your insurer during due diligence.
- Coordinate your lender timeline. Request fast appraisal scheduling so you’re not waiting on a key result at the end of due diligence.
For general consumer protections in North Carolina real estate, explore the NC Real Estate Commission’s consumer information hub.
Negotiation ideas to discuss with your agent
Here are a few ways buyers in Raleigh strengthen offers while managing risk. Tailor these to your priorities and the market.
- Calibrate DDP and DDF together. In a hot neighborhood, a shorter due diligence period with a thoughtful DDF can show commitment, especially if your lender and inspector are ready to move quickly.
- Show readiness with clean timelines. Include clear target dates for inspections, appraisal ordering, and loan milestones. Sellers appreciate a predictable path to closing.
- Clarify what conveys. List included items to prevent friction later.
- Offer practical flexibility on closing. If the seller needs a specific date, matching it can be as persuasive as a higher price.
Quick closing checklist
- Hire an experienced local agent and choose your settlement/title partner early.
- Deliver due diligence and earnest money by the exact deadlines in your contract.
- Order inspections and, if needed, a survey during due diligence.
- Review HOA documents, title work, and any permits or easements.
- Track lender milestones and appraisal timing to align with due diligence.
- Negotiate repairs or credits and decide whether to proceed before due diligence ends.
- Confirm wire instructions, final figures, and recording procedures with your settlement agent.
Ready for step-by-step guidance tailored to your move, timeline, and financing plan? Let’s talk through your goals and build a confident, competitive offer for the Raleigh market. Unknown Company can coordinate inspectors, lenders, and closing professionals so you feel supported from offer to keys.
FAQs
What is North Carolina’s Form 2-T Offer to Purchase?
- It is the standard statewide purchase contract that sets price, deposits, deadlines, and responsibilities for buyers and sellers once the seller accepts your offer.
How do the due diligence fee and earnest money differ in NC?
- The due diligence fee is paid to the seller for your right to terminate during due diligence and is credited if you close; earnest money is held in trust and is typically refundable if you terminate within due diligence under the contract.
What happens if I find issues after due diligence ends?
- After the due diligence deadline, your right to cancel depends on remaining written contract protections or a new agreement with the seller, so timing your inspections is critical.
Is an appraisal a built-in contingency in NC contracts?
- No; lenders usually require an appraisal, but it is not an automatic contract contingency unless your offer includes one, so plan your due diligence timeline with your lender.
Who handles closing in Raleigh and where is my deed recorded?
- Closings are commonly coordinated by a settlement/title company or real estate attorney, and your deed is recorded with the Wake County Register of Deeds.
