Georgia Due Diligence Explained For Atlanta Buyers

Buying in Atlanta moves fast, and your due diligence period is your chance to slow things down and make a smart decision. You want to understand the home, the neighborhood, and the contract before you commit hard‑earned money. In this guide, you’ll learn how Georgia’s due diligence works, what to check in Fulton County and the City of Atlanta, and how to protect your earnest money. Let’s dive in.

What due diligence means in Georgia

In Georgia, due diligence is a negotiated time in your purchase contract when you can fully inspect and investigate the property. The widely used Georgia REALTORS forms set the Due Diligence Period and the Due Diligence Fee you pay to the seller for taking the home off the market during that time.

This is separate from earnest money, which is typically held in escrow by a closing attorney, title company, or broker. If you terminate within the contract’s valid terms, earnest money is usually refundable. The due diligence fee is often nonrefundable unless your contract says otherwise or the seller defaults.

Keep in mind that federal requirements can also apply. For example, housing built before 1978 requires a lead‑based paint disclosure.

Typical timelines and costs in Atlanta

Market norms can shift, but here’s what you often see in Atlanta:

• Due Diligence Period: commonly 7 to 21 days. In competitive situations, you may see 7 to 10 days.
• Due Diligence Fee: ranges from a few hundred dollars to several thousand. In hot markets, some buyers offer around 1 percent of the price, but it is negotiable.
• Earnest Money: often 0.5 to 2 percent of the price, adjusted to price point and market conditions.
• Closing Timeline: 30 to 45 days is typical for financed purchases.

Your exact terms depend on your offer strategy and the seller’s expectations. Build a timeline that fits your inspection needs and your lender’s schedule.

Due diligence vs. other contingencies

Your due diligence period is the time to inspect and investigate. Other protections usually run alongside it:

• Financing contingency covers your ability to get a loan commitment on time.
• Appraisal contingency addresses a low appraisal.
• Title contingency allows termination if title issues are not cured.
• HOA or condo document review gives you time to review rules, fees, and assessments.

All these items typically happen during or near your due diligence window, but each has its own deadline and notice rules in the contract.

Your Atlanta due diligence checklist

Use this list to stay focused and on schedule.

Core inspections

• General home inspection: structure, roof, HVAC, plumbing, electrical, insulation, appliances.
• Termite and wood‑destroying organism inspection. Required for VA and FHA loans.
• Radon test if desired. Radon can be present and is testable.
• Sewer scope for older intown neighborhoods and infill lots.
• Mold, asbestos, or lead testing as needed. For homes built before 1978, follow lead rules.
• Specialty checks based on features: pool, chimney, and HVAC deep dives.
• Structural engineer review if the inspector flags foundation or framing concerns.
• Septic and well evaluation for homes not on city services, more common on the outer edges of Fulton County.

Title, survey, and boundaries

• Title search and title commitment to uncover liens, easements, covenants, and encroachments.
• Consider owner’s title insurance for added protection.
• Survey if boundaries are unclear or improvements sit near lot lines. Ask for an ALTA/NSPS or boundary survey when appropriate.

HOA or condo documents

• CC&Rs, bylaws, and rules and regulations.
• Current budget and any reserve study.
• Meeting minutes noting special assessments or litigation.
• Estoppel certificate to confirm dues and assessments.
• Rental caps or short‑term rental restrictions if you plan to lease the property.

Seller disclosures and permits

• Seller’s Property Disclosure Statement and any attachments.
• Lead‑based paint disclosure for pre‑1978 homes.
• Copies of building permits for recent work. Check for open permits or code violations through the City of Atlanta.

Zoning, overlays, and flood risk

• City of Atlanta zoning and permitted uses for your plans, including accessory units or home‑based businesses.
• Historic district or overlay rules that affect exterior changes.
• FEMA flood maps and local floodplain information. Some neighborhoods have micro‑flooding concerns that can affect insurance and resale.

Taxes and closing costs

• Fulton County Tax Assessor data for assessed value, tax history, and millage rates.
• Confirm prorations and any special assessments.
• Plan for primary‑residence homestead exemption after closing if eligible.
• Review buyer closing costs: lender fees, recording, title insurance options, and prepaids.

Neighborhood and environment

• Nearby commercial or industrial uses, planned infrastructure, and transit access.
• Older homes may include materials like lead or asbestos. Test as needed if you plan to renovate.

Documents to gather before your deadline

During your due diligence period, aim to collect and review:

• Signed seller disclosures.
• Inspection reports and repair quotes.
• Title commitment and schedule of exceptions.
• Survey or a plan to obtain one if needed.
• HOA estoppel and governing documents.
• Permit records and contractor receipts for major work.
• Appraisal and a financing commitment letter from your lender.

Atlanta and Fulton County specifics to watch

• Historic districts: Neighborhoods like Inman Park and Virginia‑Highland often have design review for exterior changes. Confirm rules early if you plan renovations.
• Flooding: Review FEMA flood zones and ask about local drainage. Insurance requirements can affect your monthly payment.
• Aging infrastructure: Many older intown homes may need roof, plumbing, electrical, or foundation updates. Budget time for specialty inspections.
• BeltLine and transit: Major projects can raise values but may bring construction and zoning changes. Ask about planned public works near your target address.
• Short‑term rentals: Atlanta has specific STR regulations and many HOAs restrict STRs. Verify rules before you buy if rental income is part of your plan.

What happens if you terminate

If you terminate within the due diligence period or under a valid contingency:

• Earnest money is generally refundable per the contract.
• The due diligence fee is typically nonrefundable and kept by the seller unless your contract provides otherwise or the seller defaults.

If you cancel without a contractual right, you may forfeit earnest money and face other contract remedies. Keep all notices in writing and on time.

How to negotiate after inspections

Once you review reports, you have options:

• Request repairs for safety or significant condition issues.
• Ask for a credit or price reduction and handle repairs after closing.
• Accept current condition and proceed.
• Walk away within your due diligence period if the risks outweigh the benefits.

Clear terms and objective standards help both sides. For example, you can specify that a licensed electrician corrects flagged hazards.

A practical timeline that works

Here is a sample playbook for a 30 to 45 day close:

• Day 0: Offer accepted. Pay earnest money and the due diligence fee as agreed.
• Days 1–3: Order general, termite, and any urgent specialty inspections. Open title, request seller disclosures, and ask for HOA documents.
• Days 3–7: Review inspection results. Get quotes from roofers or contractors for major items. Review preliminary title findings.
• Days 7–14: Negotiate repairs or credits. Complete any follow‑up inspections like sewer scope, septic, or structural engineer.
• Days 14–21: Finalize repair agreements. Secure loan commitment and appraisal. Work through title exceptions.
• Closing, Day 30–45: Final walk‑through and closing. The deed is recorded after funding.

The right local team matters

Georgia closings commonly involve a closing attorney or title company. In Atlanta, you also want inspectors who know older housing stock, surveyors comfortable with tight intown lots, and pros who understand Fulton County recording and tax proration.

At Intown Focus Realty, you get neighbor‑level guidance paired with a clear plan. We help you prioritize inspections, confirm permit and zoning details, and negotiate clean solutions so you can move forward with confidence.

Ready to buy with clarity and confidence in Atlanta? Reach out to Intown Focus Realty for local guidance that keeps your goals front and center.

FAQs

What is the due diligence period in Georgia home buying?

• It is the contract window you negotiate to inspect and investigate the property. You can terminate within this period under the contract terms.

How is a due diligence fee different from earnest money in Atlanta?

• The due diligence fee is typically paid to the seller and is often nonrefundable. Earnest money is held in escrow and is usually refundable if you terminate under valid contract terms.

How long is a typical due diligence period in Atlanta?

• Common ranges are 7 to 21 days. In competitive situations, 7 to 10 days is common, but timing is negotiable.

What inspections should I order during due diligence in Fulton County?

• Start with a general inspection and termite report. Add radon testing, sewer scope, and specialty inspections based on age and features. For rural edges, consider septic or well checks.

What happens to my money if I cancel during due diligence?

• If you cancel within the due diligence period or under another valid contingency, earnest money is generally refunded per the contract. The due diligence fee is usually kept by the seller unless your contract states otherwise.