What is the consequence if a buyer cancels after the due diligence period?

When a buyer cancels a purchase agreement after the due diligence period in North Carolina, they forfeit the due diligence fees and earnest money. The due diligence period is designed to give the buyer a designated timeframe to conduct inspections and evaluations of the property. Once this period expires, if the buyer decides to back out of the contract, they lose the financial amounts they committed, as these funds are meant to compensate the seller for taking the property off the market and for the time invested during the due diligence process. This consequence serves as a protective measure for sellers, ensuring they are compensated for the potential loss of sale while the buyer conducted their investigations.