What does due diligence time period end in real estate means?

Answer 1

It's a time period defined in a real estate contract (in residential contracts usually somewhere around 10 days) during which the buyer can back out of a binding agreement for whatever reason without any penalties like e.g. losing the earnest money. The due diligence period is especially important in buyer beware states because the buyer has to verify and check everything important to him prior to finalizing the purchase of a home. Typically, during this period the buyer will have a home inspection done, a pest inspection, a radon inspection, a survey etc. depending on what is important to know. If e.g. a home inspection uncovers issues with the property then all negotiations with the seller to fix the issues or reduce the price or whatever else the buyer wants to negotiate have to be concluded prior to the end of the due diligence period. If no agreement can be reached the buyer can terminate the binding agreement, get the earnest money back and walk away.