What states require non-refundable due diligence fees?

[Laura Siclari]

Real estate investor looking to expand into new markets in other states. I became aware that North and South Carolina have this practice of requiring due diligence fees that are included with the offer and are paid to the seller and are non-refundable if the deal doesn't close (subject to a few exceptions). Do any other states require due diligence fees? It's not a practice I've dealt with before.

[Kevin Martini]

@Laura Siclari in response to your question, I am a Certified Mortgage Advisor with a primary focus on North Carolina, although I assist individuals and families throughout the US, including South Carolina. In the Southeastern US, only North Carolina and South Carolina recognize the concept of Due Diligence (DD). However, it's crucial to note that both the amount and duration of DD are entirely negotiable. What I want to emphasize is that even though NC and SC have this distinct DD feature, it shouldn't deter you. The proposed DD amount can range from zero to $100, or even $100,000. It's all up for negotiation. I can confirm that while many contracts include a DD fee, not all of them do.