South Carolina Due Diligence Period

Quick Answer: In South Carolina, the statewide South Carolina REALTORS Form 310 contract gives buyers a negotiated due diligence period. During that window you can inspect, investigate, and walk away for any reason by delivering written notice and any agreed termination fee to the seller. Once the deadline passes, that broad right to terminate is gone. Asking for repairs does not pause the clock, and the seller is not required to agree to fix anything.

If you are buying in Hilton Head Island or Bluffton from New Jersey, New York, Pennsylvania, or Maryland, the South Carolina contract will probably feel different from what you used last time. The biggest difference is how inspections and repairs work. Understanding it before you write an offer is one of the easiest ways to protect yourself.

What is the due diligence period in a South Carolina home purchase?

The due diligence period is a set window, written into the purchase contract, when the buyer investigates the property and decides whether to move forward. The South Carolina REALTORS standard residential contract has used a due diligence model since June 13, 2022, when the older repair procedure and the separate "as-is" option were removed from the form.

During the due diligence period, a buyer can:

Order any inspections and evaluations they want
Review HOA or regime documents, insurance quotes, flood information, and the survey
Send the seller a repair request
Accept the property and move forward
Terminate the contract for any reason, or for no reason at all

The period starts when the contract becomes effective and ends on the date and time written in the agreement. The length is negotiated between buyer and seller, and like the termination fee, it is a balancing act. A shorter period can make your offer more attractive, but it has to leave enough time for inspector availability, any other contractors the home may need, and the negotiations that follow.

Does every South Carolina contract have a due diligence period?

No. Two different residential contracts are used in the Lowcountry, and they protect buyers in different ways:

The Hilton Head Area REALTORS contract provides an inspection period with specific seller repair obligations.
The statewide South Carolina REALTORS Form 310 provides a due diligence period during which buyers have broader termination rights, subject to the contract's requirements.

These are not interchangeable protections. Relocating buyers rarely know this before making an offer, so the first question to ask is which contract you are signing.

	Hilton Head Area REALTORS Contract	South Carolina REALTORS Form 310
Buyer protection period	Inspection period	Due diligence period
Seller repairs	Required as specified, typically mechanical and safety issues	Not required; market dynamics decide
Closing delays and defaults	Certain defaults have a 10-day cure provision, subject to notice and contract terms	Contract deadlines must be observed; extensions generally require written agreement

I generally use Form 310 for my buyers because of those broader termination rights, and much in this article refers to that form.

Deadlines work differently on each contract

The state contract sets a hard date and time for everything, including the closing. If the closing does not happen as scheduled, that can become a real problem, so an extension signed by both parties would generally be needed before the deadline passes. Closings slip for ordinary reasons, such as a lender needing more time or a document arriving late, so it pays to watch the calendar closely.

The Hilton Head Area REALTORS contract handles certain defaults differently, providing a 10-day opportunity to remedy the default when the contract's notice and other requirements are satisfied.

Repairs work differently on each contract

On the state contract, the seller does not have to make any repairs. Instead, market dynamics do the work: if the seller wants to keep the buyer, and other buyers are not lined up behind you, there is a reason to negotiate. If demand for the home is strong, the seller has less reason to fix anything.

The Hilton Head Area REALTORS contract does require repairs to be made as specified in the contract. Cosmetic repairs are not required, and items such as window seals are considered normal wear and tear. The required repairs are typically mechanical and safety issues. For example, the roof cannot leak, and the HVAC system has to operate within minimum standards.

How is this different from buying a home up north?

In many Northeast and Mid-Atlantic transactions, buyers are used to an inspection contingency followed by a repair negotiation, sometimes with an attorney review step in between. The general expectation is that serious defects get worked out before the deal moves on.

The South Carolina state contract flips the emphasis. The seller has no obligation to respond to a repair request, let alone agree to it, and market dynamics largely decide whether repairs get made. Your protection is not a guaranteed repair process. Your protection is the right to walk away before the deadline. That puts the burden on the buyer to get answers quickly and make a decision on time.

Termination fee vs. earnest money: what's the difference?

These two numbers are easy to confuse, and they do completely different jobs.

	Termination Fee	Earnest Money
What it is	A negotiated amount the buyer pays the seller if the buyer terminates during due diligence	A good-faith deposit showing the buyer is serious
Where it goes	To the seller, if you terminate during due diligence	Held in escrow, usually by the buyer's closing attorney
If you close	Not paid	Credited toward your purchase at closing
If you terminate properly during due diligence	Seller keeps it	Generally returned to you
If you back out after due diligence ends without a contract reason	Not the main issue	At risk, along with possible further liability (depending on other contingencies in the contract)

The earnest money deposit is completely separate from the termination fee. One does not replace the other, and each is negotiated on its own.

How much should the termination fee be?

There is no standard amount. The termination fee varies greatly from one transaction to the next, depending on the property, the price, how competitive the situation is, and what the seller is looking for. Setting it is a balancing act:

A large termination fee shows the seller you are serious, but it also gives the seller less incentive to agree to repairs. If walking away would cost you a lot, the seller knows you are less likely to do it.
No termination fee keeps your exit inexpensive, but the seller may question whether you are truly committed to buying the home. That can weaken your offer, especially when other buyers are interested.

The right number is usually somewhere in between and depends on the specific home and situation. It is worth talking through before you write the offer, not after inspections come back.

One detail matters a lot: a termination is only valid if it is delivered properly, including the termination fee when one applies. If the fee is not delivered, the termination may not count, and the buyer can end up treated as having accepted the property as is.

Under Form 310, the termination fee is generally not owed if the buyer terminates under the financing, appraisal, or wood infestation (CL-100) provisions instead of the due diligence provision. Your closing attorney can confirm how that applies to your contract.

What happens if the seller won't make repairs?

You have three realistic choices before the deadline:

Negotiate a written amendment. Repairs, a credit, or a price change only count once both sides sign them.
Accept the property as is. If you let the deadline pass, you have effectively made this choice.
Terminate. Deliver written notice and any termination fee before the deadline.

Repair conversations do not extend the due diligence period. If you need more time, the extension has to be in writing and signed by both parties before the deadline. If at all possible, get the negotiations completed prior to the end date, but repair quotes and vendor responses can hold up the process.

What should you check during due diligence in the Lowcountry?

A general home inspection is the starting point, not the whole job. For Hilton Head Island and Bluffton homes, these are the items that most often shape a buyer's decision:

General home inspection. Schedule it the day the contract is signed, not a few days later.
Wood infestation report (CL-100). Termites and wood-destroying insects are a real issue in our climate, and lenders commonly require this South Carolina form.
Roof age and condition. Insurers here pay close attention to roof age. Older roofs can affect both coverage and premium.
HVAC age. In this climate, systems typically last around 10 to 12 years. If you are buying a home here in the winter, it may not be warm enough to inspect the HVAC unit, so ask your inspector what can and cannot be tested.
Plumbing type. Polybutylene plumbing can create insurance problems.
Insurance quotes. Get homeowners, wind, and flood quotes during due diligence, not the week before closing.
Flood zone. Check FEMA's flood maps and ask whether an elevation certificate exists. Even when a home is in Flood Zone X, some lenders may require flood insurance, particularly when a higher-risk flood zone is nearby. Confirm the lender's requirements during due diligence.
HOA or regime documents. Review the budget, rules, rental restrictions, reserve account balance, and any pending assessments. See the Bluffton HOA and transfer fees guide or the Hilton Head HOA and transfer fees guide.
Survey. Confirms boundaries, easements, and whether fences or improvements sit where they should.
Waterfront extras. Docks, bulkheads, and lifts may need their own inspection, along with any permits.

Can you complete due diligence without being here?

Yes, and many of my out-of-state buyers do. It just requires tighter scheduling. Inspections can be ordered as soon as the contract is effective, inspectors can walk through their findings by phone or video, and reports arrive by email. The bigger risk for remote buyers is delay: waiting until you can fly down, or waiting on an insurance agent in another state who does not know the coastal market. A short due diligence period leaves very little room for either.

I recommend attending the inspection if possible. It's more of a learning experience than anything else. I also try to attend every inspection too.

Common due diligence mistakes out-of-state buyers make

Treating the deadline as flexible. It is a firm date and time unless both parties sign an extension. On the state contract, the same is true of the closing date.
Assuming the seller has to fix problems. They don't. Plan your decision around what you'll do if they say no.
Relying on verbal agreements. If a repair or credit is not in a signed amendment, it does not exist.
Getting insurance quotes late. A surprise premium after due diligence ends is now your problem.
Confusing the termination fee with earnest money. Know both numbers and what happens to each before you sign.

Local Perspective from Carl: I've lived in the Lowcountry since December 1996 and have been licensed since 2009, and I generally write offers on the South Carolina state contract rather than the Hilton Head Area REALTORS version, because its due diligence period gives buyers broader termination rights than the local contract's inspection period. Like the termination fee, the length of the due diligence period is a balancing act. I set it based on inspector availability, any other contractors the home may need, and the time needed to negotiate. When it comes to the termination fee, I look at each situation individually, because the amount affects how the seller responds to everything that follows, including repair requests. The most important thing I tell buyers from up north is to start every inspection and quote the day the contract is signed, because the clock does not care how far away you live.

Frequently Asked Questions

How long is the due diligence period in South Carolina?

There is no fixed length. The buyer and seller negotiate it and write a specific end date and time into the contract. The right length depends on inspector availability, any other contractors needed, and the time needed to negotiate. Longer periods give buyers more time, while shorter periods can make an offer more attractive to a seller.

Do all South Carolina real estate contracts include a due diligence period?

No. The statewide South Carolina REALTORS Form 310 includes a due diligence period with broader termination rights. The Hilton Head Area REALTORS contract instead provides an inspection period with specific seller repair obligations. These are not interchangeable protections. Buyers should confirm which contract form their offer uses before signing, since inspection and termination rights depend on it.

What happens if closing is delayed on the South Carolina state contract?

The state contract sets a hard date and time for closing, just as it does for the due diligence deadline. If closing will not happen as scheduled, an extension signed by both parties would generally be needed. The Hilton Head Area REALTORS contract instead provides a 10-day opportunity to remedy certain defaults when the contract's notice and other requirements are satisfied.

Can a buyer back out during due diligence in South Carolina?

Yes. Under the South Carolina REALTORS standard contract, a buyer can terminate for any reason during the due diligence period by delivering proper written notice and any agreed termination fee to the seller before the deadline.

Is the termination fee the same as earnest money?

No. The termination fee goes to the seller only if the buyer terminates during due diligence. Earnest money is a separate deposit held in escrow that is credited toward the purchase at closing and is generally returned if the buyer terminates properly during due diligence.

How much is the termination fee in South Carolina?

It varies greatly depending on the situation. A large termination fee gives the seller less incentive to make repairs, while no termination fee may make the seller doubt that the buyer is committed. The earnest money deposit is a separate amount.

Does asking for repairs extend the due diligence deadline?

No. Repair requests and ongoing negotiations do not pause the clock. Any extension must be agreed to in writing and signed by both parties before the deadline passes.

Does the seller have to make repairs in South Carolina?

It depends on the contract. On the South Carolina state contract, the seller does not have to make any repairs and can agree, counter, decline, or not respond at all; the buyer's protection is the right to terminate before the due diligence deadline. The Hilton Head Area REALTORS contract does require repairs as specified, typically mechanical and safety issues rather than cosmetic items or normal wear and tear.

What happens if the due diligence period ends and I haven't decided?

If the deadline passes without a valid termination or signed amendment, you generally lose your broad right to terminate and move forward under the contract as written. Backing out later without another contract reason can put your earnest money at risk.

South Carolina Due Diligence: What Homebuyers Need to Know