Due diligence checklist — before and after you go under contract.

The NC due diligence period

NC is one of a small number of states with a formal due diligence period structure. The buyer pays a due diligence fee (DD fee) — negotiated between buyer and seller, typically $500–$2,500 August 19, 2026Accurate on: August 19, 2026
Verify with NCREC in this market, though it can be higher in competitive situations — directly to the seller at contract signing. This fee is non-refundable regardless of outcome. During the due diligence period, the buyer can terminate the contract for any reason and receive the earnest money deposit (EMD) back in full. After the due diligence period expires, the buyer can still terminate, but forfeits the EMD as well. The DD fee is credited to the buyer at closing if the transaction closes. Understanding this structure is essential: the DD fee is the actual cost of changing your mind after contract; the EMD is the cost of changing your mind after due diligence.

The full timeline

Seven stages, start to finish — from the walk-through before you write an offer to the first month with the keys. Jump to any stage below; each one has its own action-item checklist.

1. 1Pre-offer
2. 2Day 1
3. 3Inspection window
4. 4Appraisal
5. 5Clear to close
6. 6Closing
7. 7First 30 days

Before you write the offer

Work through this list before you write an offer — every item on it can change your price or your terms.

• Walk the neighborhood at different times of day, including a weekday morning, to see the block's real character.
• Run the address through the ECPS zone map if schools matter to your situation.
• Check the FEMA FIRM panel for the address — Zone AE means factoring flood insurance into your carrying cost before you price the offer.
• Pull the tax record from Pasquotank County: assessed value, ownership history, any outstanding special assessments.
• Ask your agent about the property's days on market and any previous contract fallthrough history. Two fallthroughs in 90 days is telling you something worth investigating before you become contract number three.

Day 1 under contract

Day 1 action items:

• Order the home inspection immediately — good inspectors in this market book 1–2 weeks out.
• Contact your lender to confirm the loan application is moving and the appraisal is ordered.
• Confirm the seller's Lead-Based Paint Disclosure is in your file if the property predates 1978.
• Order a sewer scope inspection if the property predates 1960 and your general inspector doesn't include one.
• Confirm that your earnest money deposit is being held correctly — with the closing attorney or broker, per contract terms.

On Day 1, the due diligence clock starts running. If your period is 21 days, that means the general inspection, the sewer scope, any specialist evaluations, all lender documentation requests, and your decision to proceed or terminate all need to land inside that window. Map the timeline on Day 1, not Day 10.

The inspection window

During the inspection period:

• Attend the general inspection in person if at all possible.
• Bring a notepad and ask the inspector to explain every flag verbally.
• After the report arrives, categorize items into: (a) safety issues requiring immediate remediation; (b) material deferred maintenance items that affect your cost of ownership; (c) minor items that are normal wear.
• For items in category (a) or (b), decide whether to negotiate repairs, a price reduction, a repair credit, or walk away.

The due diligence period is the leverage window — use it. After due diligence expires, your negotiating position on inspection items essentially disappears.

The appraisal period

The appraisal happens concurrently with or just after the inspection window. For conventional financing, appraisers typically turn around within 10–15 business days of being ordered. For VA: 10–20 business days. For FHA: similar to VA.

• If the appraisal comes in below purchase price: negotiate the price down to the appraised value, pay the difference in cash (the appraisal gap), or terminate.
• Discuss the appraisal-gap scenario with your lender and buyer's agent before going under contract on any property with elevated appraisal-lag risk — newly renovated properties, or a market where comps are sparse.
• On pre-1960 stock expect possible VA/FHA Minimum Property Requirement (MPR) flags — deteriorating paint, unsafe electrical, roof issues, and other habitability conditions the appraiser must call out.
• Build a buffer into your timeline for a possible repair-and-re-inspect cycle if MPR conditions come up.

Clear to close

"Clear to close" is the lender's confirmation that all underwriting conditions are satisfied. It typically arrives 2–7 days before the scheduled closing date.

• Don't schedule movers, utility transfers, or any closing-dependent commitment until you have CTC in hand.
• Respond within 24 hours to every lender documentation request — updated bank statements, paycheck stubs, or an explanation letter can come at any point during underwriting.
• Confirm with your lender before any large financial move — new debt, a job change, a significant deposit — from under contract through closing.

Closing day

North Carolina closings are attorney-only: a licensed NC real estate attorney conducts the closing, handles the title search, manages escrow funds, and records the deed. The buyer typically selects the closing attorney; fees run $600–$1,200 for a standard purchase.

• Bring government-issued ID and confirmed funds (wire transfer or certified check per the closing disclosure).
• Review the Closing Disclosure at least 24 hours before closing — it should match the Loan Estimate with only the allowable variances.
• Do a final walkthrough of the property the day before or morning of closing.

The final walkthrough is not a second inspection — it's a confirmation that the property is in the same condition as when you wrote the offer and that any agreed repairs have been completed. Walk every room, run every faucet, turn on the HVAC, and check the crawl space access if the inspector noted anything specific. If something has changed materially, you have the right to delay closing until it is resolved.

The first 30 days

First 30 days after closing:

• Change all locks and garage codes immediately.
• Locate the main water shutoff, the electrical panel, and the HVAC filter.
• Set up utility accounts in your name — City of Elizabeth City utilities (252-335-4445), Dominion Energy North Carolina, and internet or cable service.
• Check whether you qualify for any NC property tax relief program with the Pasquotank County Tax Assessor — see the note below before assuming any reduction applies to you.
• Schedule any deferred maintenance items identified in the inspection that you accepted as-is.
• If the property is in an HDC overlay district and you have renovation plans, start the Certificate of Appropriateness application process now — the review runs 30–60 days.

Submitting the COA application before you need the contractor on-site means the permit will be ready when the contractor is. Waiting until the contractor is available and then discovering a 45-day review queue is a common and avoidable delay.

Sources

• NC Real Estate Commission (ncrec.gov) — due diligence period structure and forms
• NC State Bar (ncbar.gov) — attorney-only closing requirement
• Pasquotank County Tax Assessor — assessed value, property tax records
• NC Department of Revenue (ncdor.gov) — Elderly/Disabled and Disabled Veteran property tax exclusion eligibility (NCGS 105-277.1, 105-277.1C)
• NC General Statute 47E — Residential Property Disclosure Act
• Author transaction observations, Pasquotank County 2018–present

Due diligence fee and earnest money ranges reflect market conditions at time of publication and vary by transaction. Verify current norms with your buyer's agent before structuring an offer.