What Due Diligence Actually Is in South Carolina
Due diligence is the window of time after an offer is accepted when a buyer can inspect the home, verify the details, and back out for almost any reason without losing their earnest money. In South Carolina, this is typically a defined period written into the purchase contract — often 10 to 14 days, though it can be shorter or longer depending on the deal.
Here's what nobody tells you. The due diligence window is the most important stretch of the entire transaction for buyer protection. Skip a step during this window and you're stuck. Use it well and you close with confidence. Most first-time and out-of-state buyers underestimate how much needs to happen in those two weeks.
Due Diligence vs. Earnest Money
Two different concepts, often confused. Earnest money is the deposit you put down to show you're serious about the offer. It sits in escrow, usually with the closing attorney or listing brokerage. Due diligence is the time window that determines whether you can back out and get that earnest money back or forfeit it.
Some SC contracts also include a separate due diligence fee, which is paid directly to the seller upfront and typically non-refundable regardless of the outcome. Not every deal uses this structure. Confirm with your Myrtle Beach real estate attorney and your agent what your specific contract says about each.
What Should Actually Happen During Due Diligence
Order the Home Inspection Immediately
Day one. Not day five. Good inspectors on the Grand Strand book out during busy seasons, and you need the report back with enough time to negotiate repairs. Use an inspector who understands coastal specifics — salt-air wear on HVAC, humidity in crawlspaces, roof condition after storm exposure. Our Myrtle Beach home inspector page is a starting point if you don't already have one lined up.
Add Specialty Inspections Where Needed
The general inspection catches most items, but some homes need more:
- Termite inspection (CL-100 / WDIR letter) — required for financed transactions in South Carolina and worth doing regardless
- Roof inspection when the general inspector flags concerns or when the roof is 15+ years old
- HVAC inspection by a specialist when the system is older or if the general inspector notes issues
- Well and septic on rural properties in Aynor, Longs, and outlying areas
- Pool and spa inspection when applicable
- Structural inspection when the general inspector flags foundation or framing concerns
Review Everything Your Attorney Provides
South Carolina is an attorney-closing state. The closing attorney typically runs a title search, reviews easements, checks for liens, and confirms clean transfer of ownership. Your job is to read what they send. If any restriction, easement, or lien looks unfamiliar, ask questions during due diligence, not the day of closing.
Confirm HOA and Insurance
Request HOA documents, financials, meeting minutes, and any pending special assessments. Get a real insurance quote from a local carrier for wind, hail, and flood coverage. Both of these can change the true cost of ownership meaningfully. Both should happen inside the due diligence window while you can still walk away.
Verify the Fundamentals
Walk the property lines. Confirm the survey matches what you toured. If you're buying based on views, water access, or specific room dimensions, verify them. Buyers assume too much about what's included and what's not — appliances, furniture, storage sheds, dock rights.
What Happens After the Inspection Report Comes Back
You have three options:
- Accept the home as-is and move forward to closing
- Negotiate with the seller for repairs, credits, or price reductions on items the inspection flagged
- Terminate the contract within the due diligence window and get your earnest money back
Most deals go through option two. A seasoned agent knows which repair asks are reasonable and which will kill the deal. If the seller refuses to negotiate and the concerns are meaningful, option three exists specifically so buyers aren't forced into homes with unresolved problems.
Common Mistakes That Cost Buyers Their Earnest Money
- Missing the due diligence deadline — coverage typically ends at 5pm on the final day, not midnight
- Sending termination notice informally instead of through the required contract process
- Trying to renegotiate after due diligence expires
- Failing to complete inspections in time to negotiate before the window closes
- Assuming a specific concern is covered without reading the contract's specific language
The contract governs the outcome. Read what you signed. If you don't understand a clause, ask your agent or attorney before the clock is against you.
How Long the Window Should Be
Standard practice on Myrtle Beach transactions runs 10 to 14 days for due diligence. Rural or complex properties often need longer. Simple resale condos may work with shorter windows. Discuss the right length with your agent before you make the offer — sellers may resist a longer window in competitive markets, but you need enough time to complete the inspections properly.
For a broader view of how this window fits inside the whole transaction, see our Myrtle Beach real estate FAQ.
Key Takeaways
The South Carolina due diligence period is your most important protection as a buyer. Order the inspection on day one. Add specialty inspections where the property calls for them. Review HOA documents, insurance quotes, and everything your closing attorney sends. Verify the fundamentals in person. Know your options once the report comes back: accept, negotiate, or terminate. Miss the deadline or the contract's process, and you can lose the earnest money you thought was safe. Take the window seriously and it works exactly as designed.
Frequently Asked Questions
How long is the due diligence period in South Carolina?
It varies by contract but commonly runs 10 to 14 days in Myrtle Beach transactions. Rural properties, complex deals, or homes needing specialty inspections may warrant longer windows. Simple resale purchases sometimes use shorter timeframes. The number is negotiated in the purchase contract itself.
Can I terminate the contract during due diligence for any reason?
In most South Carolina purchase contracts, yes. The due diligence period is designed to give buyers the ability to back out without losing earnest money if they find issues during inspection or discover other concerns. Confirm your specific contract language with your agent or attorney.
What is a CL-100 termite letter?
The CL-100 is a Wood Destroying Insect Report (WDIR) required by most lenders on financed transactions in South Carolina. A licensed pest control company inspects the home for evidence of termites and wood-destroying insects, then issues the report. It's a routine part of due diligence in the Grand Strand market.
Do I need a separate due diligence fee in addition to earnest money?
Not always. Some South Carolina contracts include a due diligence fee paid directly to the seller that's typically non-refundable, in addition to earnest money held in escrow. Others don't. Confirm with your agent and attorney which structure your specific contract uses.
Can I ask for repairs after the due diligence period ends?
Generally no. Once the due diligence window closes, your leverage to negotiate repairs or terminate over inspection issues is very limited. That's why completing all inspections and negotiating any concerns inside the window matters so much.
About Greg Harrelson
Greg Harrelson is a seasoned Realtor® with more than 30 years of experience serving the Myrtle Beach and Grand Strand markets. As the founder of Century 21 The Harrelson Group, Greg has built his career helping buyers, sellers, and investors achieve success in every corner of the coastal Carolina real estate market. His expertise spans residential homes, investment properties, land development, and coastal condos. Known for his deep local knowledge, innovative marketing strategies, and commitment to personal service, Greg consistently helps clients reach their real estate goals while navigating the ever-changing market with confidence and precision.
