If a home buyer doesn’t pay the due diligence fee, can a seller deny access to a home for inspection?

A home seller accepts an offer with a substantial due diligence fee. In North Carolina, due diligence fees are due on the effective date of the contract. Despite several reminders to the buyer’s agent, the fee has not yet been delivered.

The buyer’s agent calls to arrange a home inspection. The sellers don’t want to allow that inspection until the due diligence fee is paid. Assuming that the standard offer to purchase 2-T was used, do the sellers have the right under the terms of the contract to refuse access to their property until the due diligence fee is paid?

The answer: No.

At this point, the terms of the contract are binding on both parties

While one of the obligations of the buyer is to pay the due diligence when the contract becomes effective, one of the obligations of the seller is to provide reasonable access to the property - - it is not conditioned on receiving the due diligence fee first.

That said, with regard to the due diligence fee, if the buyer does not pay on time, the seller does have remedies available.

The seller may deliver a written notice to the buyer demanding payment of the fee within one banking day.

If the buyer does not deliver the funds in a timely manner, the Seller shall have the right to terminate this Contract upon written notice to the Buyer, AND the Seller will still be entitled to recover the Due Diligence Fee, and pursue other remedies outlined in paragraph 1d).

So if you’re a buyer, it would be best not to mess around with delivering the due diligence fee.