How the "New" Due Diligence Contract is Going + More Changes and New Addenda Coming

Greenville’s residential market has been living with South Carolina’s updated contract for a while now, and the real story isn’t just what changed on paper—it’s how deals are actually unfolding at the kitchen table, during inspections, and in those last-minute addenda that make or break a closing. This episode of Selling Greenville walks through what the “new” system really looks like in practice and flags several coming from updates that will matter to buyers, sellers, and agents alike.

New Due Diligence Contract in South Carolina Real Estate

When the state moved to a due diligence model on the standard residential contract (the South Carolina Association of Realtors Form 310), it retired the old, often-murky repair categories—“structural,” “roof leaks,” and the like—that led to endless arguments about whether a ceiling stain was a leak or “just paint.” In their place, the updated framework made things simple: buyers can ask for anything; sellers don’t have to agree to anything. The deal either finds its compromise, or it doesn’t.

That simplicity, of course, comes with real leverage on both sides. Buyers hold the right to walk during the due diligence period; sellers hold a new, very real lever called the termination fee. And how each side uses that lever has quickly become the difference between smooth outcomes and painful resets.

What changed—and why it matters

Under the new due diligence contract in South Carolina real estate, buyers no longer rely on a predefined list of “required” repairs. Instead, they get a defined window to do whatever investigations they want—a licensed home inspection, contractor look-over, or even just their own walkthrough—and then propose repairs, price adjustments, closing cost credits, a home warranty, or any combination thereof.

Key details from the field:

• Sellers do not have to grant any repair or credit request. Their leverage is the termination fee: if the buyer walks during due diligence, the buyer pays that fee.

• Buyers’ leverage is the right to walk, but it costs whatever was negotiated for the termination fee.

• Timing is strict. In the previous system, buyers could submit repairs on the last day and then ride back and forth. Now, once the due diligence deadline hits, it’s over. If a change is desired, it must be proposed, negotiated, and signed before the period expires.

What “normal” looks like now

After several months of real-world use, a few norms have emerged:

• Typical due diligence length: 10–14 days. That’s generally enough to inspect, review results, propose changes, and sign a resolution. One-month windows are viewed as abnormally long and raise questions about why that much time is needed.

• Typical termination fees (sub-$500k price points): $0–$1,000, often $250–$500.Buyers frequently open with a very low fee to keep leverage; sellers push to raise it to test commitment. North of $1,000 shows up more often as prices climb or competition increases.

• Inspection style: plenty of licensed inspections—as always. But some buyers simply self-evaluate and send a request list based on what they see. Sellers often prefer that route because it typically produces shorter lists than a full, licensed inspection.

• How requests resolve: more credit-and-cost solutions, fewer “seller to repair everything” outcomes. Home warranties, targeted fixes, and closing cost credits are common paths to yes.

Negotiation tactics that work (and why)

A few practical patterns are standing out:

• Use credits to avoid poor repairs. If a home shows deferred maintenance—or the seller’s workmanship is questionable—buyers often ask for closing cost help instead of repairs. It’s cleaner at the closing table and reduces the risk of post-closing “do-over” work.

• End due diligence early—on purpose. When buyers and sellers agree on a credit or term before the deadline, adding language that ends the buyer’s due diligence right upon signing gives the seller certainty and helps win the concession. (It says, in effect: “We’ll stop asking if you sign this.”)

• Read the termination fee as a commitment signal. Sellers are weighing offers not only on price, financing, and timing, but also on the termination fee. A $0 fee can read as “one foot out the door.” A few hundred dollars shows intent without over-committing.

Guidance for sellers

• Don’t panic about pace. The market isn’t the frenzy of the pandemic years. Showings and offers can take longer. Patience beats accepting a flimsy termination fee just to “get something going” and then landing back on the market two weeks later.

• Counter the termination fee. If an offer comes in at $0 or $100, counter with a number that reflects your confidence and the home’s marketability. Even moving a buyer from $100 to $500 can materially change the tone of the deal.

• Shorten long due diligence requests. If a buyer wants 30 days, tighten the window or request a rationale. Most residential inspections and negotiations fit cleanly into 10–14 days.

Guidance for buyers

• Keep your fee low—but credible. $250–$500 often threads the needle: meaningful enough to show commitment, light enough to keep leverage.

• Move fast on inspections. Line up inspectors early and leave buffer days to negotiate and sign before the deadline. The clock is real.

• Ask for structure, not just a sticker. When repairs feel risky, ask for a credit, warranty, or both. The contract allows for creativity—use it.

New forms and addenda on the way

Beyond the day-to-day contract mechanics, South Carolina is rolling out several targeted updates that address recurring pain points:

• Vacation Rental/Short-Term Rental Addendum: Clarifies expectations when an Airbnb/short-term rental changes hands: rent rolls, future bookings, whether the buyer will continue STR operations, and how that may touch financing.

• Personal Property Addendum: Brings clarity to “Does it convey?” for items like garage door openers, sump pumps, generators, invisible fencing, smart car chargers, and similar gray-area components—unless the seller excludes them.

• Occupancy Before/After Closing Agreements (Buyer/Seller): Updated language tightens these to 7-day agreements. Longer stays should involve attorney-drafted documents due to financing and landlord-tenant implications.

• Buyer Agency Agreement Changes: Fewer compensation options and more certainty: buyers and agents will set a percentage or flat fee, and if the listing’s co-op compensation doesn’t cover it, the buyer is responsible for the shortfall (often offset with seller-paid closing costs when the market allows). Practically, this may pressure any builder or seller offering unusually low co-op payouts to rethink their structure.

Real outcomes since the switch

Across a healthy volume of deals, terminations during due diligence have been the exception rather than the rule. There have been a few—on both buy and sell sides—with termination fees paid as agreed, but the overarching theme is fewer mid-deal fights and cleaner resolutions. The new framework reduces arguments over definitions (“Is this ‘structural’?”) and pushes both sides toward practical, documented agreements before the clock runs out.

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Bottom Line

South Carolina’s straight due diligence approach has matured into a predictable rhythm: 10–14 days to inspect and negotiate, modest termination fees to signal commitment, and a bias toward credits and structure over open-ended punch lists. For sellers, that means valuing the termination fee alongside price and timing; for buyers, it means moving quickly, negotiating clearly, and using the flexibility the contract provides.

And with new addenda—from short-term rentals to personal property and occupancy tweaks—transactions should get clearer still. Master the mechanics, respect the clock, and the new due diligence contract in South Carolina real estate can work smoothly for both sides.

Ien Araneta

Journal & Podcast Editor | Selling Greenville