Due Diligence Fee

[Adrienne Bryson]

I'm new to REI and another topic brought this to mind...

When my husband and I bought our house (that we live in, not an investment), we paid an earnest money deposit that was credited to us at closing.  We also paid a due diligence fee directly to the seller that was just his, separate from any other transaction.

Do investors pay due diligence fees?  I have it in my contract, but I never hear anyone else talk about it.  I thought it was standard in any purchase.