Buying a home in Dallas, Georgia comes with one term you will hear a lot: due diligence. This is your short, powerful window to investigate a property and decide if you want to move forward. You are not just checking boxes. You are protecting your money and your peace of mind.
In this guide, you will learn how Georgia’s due diligence period works, what to do first, and how to tailor your plan to Paulding County. You will also get a practical timeline and checklists you can use right away. Let’s dive in.
What due diligence means in Georgia
Georgia purchase contracts commonly include a negotiated due diligence period. During this time, you have the contractual right to inspect the home and terminate for any reason by giving written notice before the deadline. This is not a state statute. It is a contract-based window that you and the seller agree to in writing.
Two separate money items matter here:
- Due Diligence Fee (DDF). You typically pay this directly to the seller at contract signing for the right to inspect and terminate. The fee is usually nonrefundable to you. If you terminate during the period, the seller typically keeps the fee. Always check your exact contract.
- Earnest Money. This is separate. It is often held in escrow and is usually returned to you if you terminate properly within the due diligence period. Again, the contract governs.
To use your termination right, you must deliver written notice before the deadline. Georgia contracts often treat time as of the essence and measure deadlines in calendar days unless the contract says otherwise. Put your due dates on a calendar the moment you go under contract.
For Dallas and greater Paulding County, this period is your chance to vet septic systems, wells, boundary lines, permits, and any rural property considerations that are common outside metro cores.
What to do during the period
Inspections to schedule first
Book your core inspections in the first 48 to 72 hours:
- General home inspection: structure, roof, foundation, HVAC, plumbing, electrical, appliances.
- Wood-destroying organism (WDO/termite) inspection: often required by many loan programs.
- Roof inspection or certification if age/condition is a concern.
- HVAC performance and ductwork check, especially for older systems.
- Chimney and fireplace inspection if present.
- Mold/moisture assessment if you see signs of water intrusion.
- Radon testing if desired.
- Septic system evaluation and dye test for homes not on public sewer. Verify permit history, pump records, and drainfield status with county environmental health if available.
- Well inspection and water testing if on a private well.
- Boundary survey or survey review to confirm lines, easements, and encroachments.
For complex sites, you may also consider soil or environmental checks, though this is uncommon for typical single-family purchases.
Title, permits, and HOA review
- Title search and attorney/title company review for liens, easements, covenants, and unpaid taxes.
- HOA documents if applicable: covenants, fees, rules, architectural approvals, and any special assessments.
- Zoning and use: confirm the current zoning and any restrictions with the city of Dallas if inside city limits, or through Paulding County planning if outside.
- Permit history: request records for additions, roof replacements, HVAC swaps, pools, decks, or finished basements. Verify with Paulding County Building & Codes that permits were pulled and closed.
Insurance checks
- Homeowners insurance quotes: carriers will ask for roof age, construction type, and any prior claims.
- Flood risk and coverage: look up the FEMA flood zone for the parcel and price a flood policy if needed. Lenders require flood insurance if the home is in a high-risk flood zone.
- Storm-related deductibles: understand wind or hail deductibles and how they affect premiums.
Financing moves to start Day 1
- Complete your loan application as soon as you are under contract. Send income and asset documents quickly.
- Expect a Loan Estimate from your lender after you apply.
- Get the appraisal ordered early. Appraised value can affect your loan amount and any renegotiation.
- Stay responsive during underwriting. FHA and VA loans may require a WDO report and repairs before closing. USDA programs may apply for rural properties, so confirm eligibility early.
Contractor bids and repair estimates
If inspections reveal issues, request 2 to 3 written bids for major items like roof, septic, structural, or HVAC. Verify contractor licensing where applicable, insurance, references, and experience with permits. For septic or well work, use contractors familiar with Paulding County Environmental Health processes.
Paulding County specifics to verify
- Utilities: confirm whether the home is on public water/sewer or on septic/well, and where public sewer lines run if future connections matter.
- Taxes: review property tax history and whether any special assessments apply.
- Building and permit records: check Paulding County for open permits or code issues.
- Access and roads: if on a private road, verify maintenance agreements and any county right-of-way items.
- Schools and local ordinances: confirm school district boundaries and any local rules that affect your use. Keep your review neutral and fact-based.
A 14-day sample timeline
Every deal is different, but this timeline reflects a common rhythm in Paulding County, especially when septic or well testing is involved.
Day 0–1: Contract executed
- Pay the due diligence fee and deposit earnest money as the contract states.
- Apply for your loan and provide requested documents.
- Schedule the general and WDO inspections and, if needed, septic and well inspections.
- Request seller disclosures, HOA docs, and any known permits.
- Ask for an existing survey or order a new one if boundary questions exist.
Day 2–4: Core inspections and orders
- Inspectors visit the property. Expect reports within about 24 to 48 hours.
- Begin septic dye test and well water sampling if applicable.
- Request homeowners and flood insurance quotes.
- Order title work and review the preliminary title report.
- If a new survey is needed, order it now since it may take 1 to 3 weeks.
Day 5–8: Review and estimate
- Review the inspection reports with your agent and list material items.
- Request contractor bids for key issues like roofs, septic, structure, or HVAC.
- Lender orders the appraisal and starts underwriting. Respond to any document requests.
- Check the property’s flood zone status and discuss flood insurance costs if needed.
Day 9–12: Decide and negotiate
- Compare contractor bids and timelines.
- Decide your negotiation plan: request repairs, seek a credit, or accept the home as-is.
- If the findings are not acceptable, prepare a written termination notice and deliver it before the due diligence deadline.
- Keep responding to any lender conditions.
Day 13–14: Lock in your path
- If moving forward, finalize all repair or credit agreements in writing and get signatures.
- Confirm lender timelines and verify that appraisal and title items are on track to clear.
- If terminating, send written notice exactly as required by the contract and confirm earnest money return procedures. The seller typically keeps the due diligence fee.
Quick checklists you can use
Inspections and tests
- General home inspection
- WDO/termite inspection
- Septic evaluation and dye test, if applicable
- Well inspection and water quality tests, if applicable
- Radon test if desired
- Roof, HVAC, chimney, and moisture checks
Documents and records
- Seller disclosures
- HOA covenants and fees, if applicable
- Prior permits and completion records
- Survey or boundary confirmation
- Title commitment or preliminary title report
Insurance and lending
- At least two homeowners insurance quotes
- Flood zone check and flood insurance quote if needed
- Loan application submitted Day 1
- Appraisal ordered and tracked
- Underwriting conditions handled promptly
Contractor bids and verification
- 2 to 3 written bids for major items
- Verify licensing, insurance, and references
- Confirm permitting steps and timelines
Local verifications
- Paulding County permits and code status
- Zoning and use confirmation
- Road maintenance agreements for private roads
- Property tax history and assessments
- School district boundaries (verify neutrally)
Decision points
- Repair requests or credits drafted
- Proceed as-is if acceptable
- Terminate in writing before the deadline if not
Common risks and how to avoid them
- Short due diligence window: You may not have time for septic, well, or specialized checks. Mitigate by negotiating a longer period or adding specific contingencies.
- Due diligence fee tradeoff: A higher fee may strengthen your offer but raises your exposure. Balance fee size with the time you need to investigate.
- Unpermitted work: Older homes may have improvements without permits. Verify with county records and plan costs to bring items into compliance.
- Lender or appraisal surprises: Property conditions or value questions can arise after due diligence. Stay close to your lender, ask for property-related conditions early, and be ready to negotiate if the appraisal comes in low.
When to bring in specialists
- Real estate attorney: contract interpretation, easements, or complex title matters.
- Licensed home inspector and specialists: septic, well, structural engineer, mold, or environmental issues.
- Insurance agent: guidance on wind, hail, tornado, and flood coverage relevant to Paulding County.
- Experienced local agent: sequencing inspections, recommending vendors, and negotiating repairs or credits.
Move forward with confidence
Due diligence in Georgia is a powerful tool when you use it with a plan. Start fast, prioritize the critical inspections, keep your lender engaged, and make your decision before the deadline. With a clear timeline and the right local help, you can protect your deposit and set up a smooth closing.
If you want a single point of contact who understands both financing and the local contract rhythms, connect with Stevenson Bruno to map your due diligence strategy, line up inspectors, and keep underwriting on schedule. Get Prequalified and shop with confidence.
FAQs
What is the Georgia due diligence fee and is it refundable?
- The due diligence fee is paid to the seller for your right to inspect and terminate; it is typically nonrefundable to you, while earnest money is usually returned if you terminate properly within the period, subject to your contract.
How long is a typical due diligence period in Paulding County?
- Many contracts land in the 10 to 14 day range to allow time for septic or well testing and contractor bids, though the exact length is negotiable and can be shorter or longer.
What inspections matter most for Dallas, GA homes on septic or well?
- Schedule a septic evaluation with a dye test and verify permit records; for wells, get a full system check with water quality testing and confirm pump age and flow.
Can I terminate for any reason during due diligence in Georgia?
- Yes, you can terminate for any reason during the negotiated due diligence period, but you must send written notice before the deadline exactly as your contract requires.
When should the appraisal be ordered and why does it matter?
- Order the appraisal early so financing stays on track; the appraised value can affect your loan amount and may lead to renegotiation if it comes in below the purchase price.
Do I need flood insurance in Paulding County?
- If the property is in a high-risk FEMA flood zone and you have a mortgage, the lender will require flood insurance; even outside high-risk zones, you can price optional coverage for added protection.
