The due diligence period in a real estate contract is there to protect the buyer with regards to a real estate transaction. It is provided as a negotiated time period from the date the contract is signed to give a buyer an opportunity to fully investigate moving forward with the sale. This is also typically the time period when inspections and appraisals of property are conducted. So if there is anything that could give pause for the sale of the property it provides a Buyer with a way to cancel the transaction before it becomes binding. If during this time the buyer decides the property is not for them, they can cancel and receive their earnest money back if specified in the contract. The expiration of the due diligence period does not terminate any other contingencies that have been added to the agreement.
