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Buying a House in NC or SC? Key Terms to Know (+ FAQs from a Local Real Estate Agent)
Author: Jamie Milam
Date: March 3, 2026
Buying a home is complex, partially because it comes with a lot of contract-related language and partially because there are a lot of things to consider to protect yourself before making such a large investment. Choosing the right real estate agent—one that is experienced and you like and trust—can really help you navigate the "legalese" and complex terminology. Still, it's important to get a sense of key terms you'll hear once under contract for your new home to help confidently navigate the process.
This guide lays the key definitions you need to know when closing on a home in North Carolina or South Carolina. Note that while many of these concepts are applicable across states, it's important to always check with your agent, lender, and other professionals to confirm specifics for your exact state's purchase contract. I'll also answer some of the most common questions I hear from my clients down in our FAQ section.
Ready? Let's talk real estate vocab!
Glossary: Key Definitions for Homebuyers Under Contract
Confused about all the acronyms? Let's make sense of them together—here are the definitions you need to know:
1. Earnest Money Deposit (EMD)
Earnest Money is your “good faith” deposit that shows the seller you’re serious. It’s typically paid after your offer is accepted, delivered by the deadline in the contract, and held in escrow until closing. (Escrow is a neutral third-party that holds funds until they should be released, ie your closing attorney.)
The amount of your EMD varies by market and price point, but for planning purposes it’s smart to be prepared for up to ~2.5% of the purchase price, though your agent will advise what’s competitive for your area and the property itself. It's also important to note that refundability depends on deadlines and contract terms, which is something else your agent can clarify for you. For more on the specifics to EMD in North Carolina and South Carolina, please see the FAQ section below.
2. Due Diligence (DD)
A technical definition of due diligence is available from the North Carolina Offer to Purchase and Contract, which says:
“[Due diligence is the] Buyer’s opportunity to investigate the Property and the transaction… to decide whether Buyer, in Buyer’s sole discretion, will proceed with or terminate the transaction.”
Simply put, it’s your time to verify the home, the land, the neighborhood rules, and the finances—so you can decide to move forward or walk away.
Common due diligence items include:
- Inspections: General home inspection for sure, and then specialist inspections as needed (roof, HVAC, plumbing, electrical, foundation, moisture/drainage, etc.), plus termites/wood-destroying organisms, radon, asbestos/contamination, septic/well (if applicable).
- HOA document review: This includes everything from covenants to bylaws and rules, seller HOA disclosure, transfer fees, architectural guidelines, compliance letters, and any proposed/rumored added assessments or projects.
- Insurance: Cost and insurability, as some homes can be difficult and/or expensive to insure.
- Appraisal: Lender-ordered value check, if financing.
- Survey: Confirms the land boundaries, easements and setbacks, and helps catch encroachments. You can learn more in our guide to surveying property in North Carolina.
- Zoning and government rules: Allowed use, permits, nearby development or road projects, school rezoning, and code or permit concerns.
- Flood, wetlands, and water risk: Flood zone, drainage or water issues, and flood insurance requirements.
- Utilities and access: Availability and function of water, sewer, septic, power, gas, internet—including maintenance responsibility.
I've said it before and I'll say it again: work with the right real estate agent, and they'll help you navigate through all of this! They have specialized knowledge in your specific area, so can help you know what type of due diligence is necessary for your home purchase.
3. Due Diligence Period (DDP) or Inspection Period
The Due Diligence Period is the set window of time where you do inspections, review documents, confirm insurance and financing, and decide whether to proceed. Basically, it's time to get through that giant list in the previous section!
While there can be some urgency around this period, it's really important to go through everything you need to get through. Skimping on your due diligence may lead to some big issues down the road.
Timing detail that matters: If you plan to terminate, you need to do it before the due diligence deadline stated in your contract (often written as 5:00 PM on the end date). If you let that deadline pass, your EMD may become at risk or non-refundable, unless another contract clause applies.
4. Due Diligence Fee (DDF)
The Due Diligence Fee is money paid directly to the seller (after acceptance) for the right to take the home “off the market” while you investigate.
- In North Carolina, DDF is non-refundable once paid, even if you terminate later. The biggest exception is in the event of a material breach of contract by the seller.
- The amount depends on the price, condition, days on market, and competition, but a reasonable planning expectation in competitive scenarios can be up to ~2.5% of the purchase price.
- This term in the contract is a big tool in showing the seller how confident you are about their property. It is often a term that can make or break an offer.
Note that South Carolina contracts include a termination fee—a set amount the buyer may pay if they terminate under certain conditions. Similar to a due diligence fee, except it is not paid directly to the seller until the contract is terminated. Whether it applies depends entirely on the contract language, agreed-upon terms and timeline.
It's not uncommon to have more questions about Due Diligence, especially in North Carolina, so be sure to check out the FAQ section below.
5. Seller Concessions and Closing Cost Credits
A seller concession (AKA closing cost credit) is when the seller agrees to contribute money toward your allowable closing costs, prepaids, or even a direct payment to a third-party contractor in lieu of a repair. This is not cash handed to you—it’s a credit on the settlement statement or Closing Disclosure that reduces what you bring to closing. Lenders have rules and limits depending on loan type and down payment.
A motivated seller may offer concessions or closing cost credits to help make their property more attractive to a buyer. They may, for example, offer 3% of the purchase price toward closing costs. On a $350,000 home, that's $10,500 toward closing costs. This helps lessen the upfront costs a buyer has to pay.
6. Closing or Settlement
Closing or settlement is the day the transaction is finalized: documents are signed, funds are delivered, the deed transfers, and the sale becomes official. You're officially a homeowner!
Note that:
- In North Carolina, keys are typically released after the deed records with the county. This is often same day, but timing varies.
- In South Carolina, keys are typically released when everything is signed and funded per the closing attorney’s process, then recorded as part of the closing workflow.
7. Closing Costs
Closing costs are officially organized into two "buckets" plus the pre-paids category. Lenders make the distinction, though most real estate professionals casually call all of them "closing costs." This relates to any costs associated with purchasing the home that are separate from your down payment, your initial deposits (EMD and, in NC, DDF), and your inspection-related costs—but lenders often separate them into different categories on your loan estimate and closing disclosure (and sometimes even in conversation):
1) Lender Fees (mortgage-related):
- Origination, underwriting, and processing (varies)
- Appraisal (often paid before closing)
- Credit report (sometimes)
- Discount points (if you buy down your rate)
2) Transaction Fees (sale-related):
- Attorney and settlement fees
- Title search and title insurance (varies by state/custom; negotiable in many cases)
- Recording, filing, and transfer-related fees
- Courier, wire, and admin fees (varies)
Pre-paids:
Note that these are not really fees, but refer to money collected upfront
- Homeowners insurance premium (often 1st year depending on setup)
- Prepaid interest (from closing date to end of month)
- Tax and insurance escrows (if applicable)
- HOA dues and/or transfer fees (if applicable)
8. Home Warranty
A home warranty is an optional service contract that may cover certain repairs and replacements for systems or appliances (depending on plan terms) during the first year. Home warranties:
- Often includes a service call fee, coverage limits, and exclusions (pre-existing issues, improper installation, maintenance, etc.)
- Are not the same as homeowners insurance.
FAQs: Homebuyer Terminology in North and South Carolina
Getting under contract for your new home in North or South Carolina is not without some complexities. Here are the most frequently asked questions I hear from homebuyers:
Earnest Money Deposit (EMD) FAQs:
A: EMD (Earnest Money Deposit) is typically paid after contract acceptance, by the deadline stated in the contract, and delivered to the escrow holder (often a firm or attorney depending on local practice).
Q: How much is a typical EMD?
A: It varies. In competitive situations, more EMD can strengthen your offer. For planning, I often tell buyers to be prepared for up to ~2.5% depending on price point and competition, then we tailor it to the specific home and situation.
Q: Is EMD refundable?
A: Not always. Refundability depends on your contract deadlines and termination rights.
- NC: the due diligence deadline is a major turning point—terminate properly during DD and EMD is typically refundable; go past the end of the DDP and EMD may become at risk.
- SC: refundability depends on contract terms or contingencies and meeting notice or timing requirements.
Due Diligence Fee (DDF) FAQs:
A: No. You only pay DDF after your offer is accepted and you’re officially under contract. It is owed as soon as the contract is formed.
Q: What happens to my DDF if I change my mind the next day after the seller accepts my offer?
A:
- In NC, that fee is due and payable the moment the seller accepts your offer—even if you change your mind. Failure to provide the deposit means you are legally in breach of the contract and the seller can take you to court to collect that deposit.
- In SC, you would pay the agreed amount of your termination fee. Same terms apply as NC, meaning failure to provide the deposit means you are legally in breach of the contract and the seller can take you to court to collect that deposit.
Q: What is the typical amount for a DDF?
A: It depends. But to stay competitive, it’s smart to plan for up to ~2.5% of the purchase price in some markets/price points and dependent on market conditions and number of offers. This one terms largely depends on market & property conditions and can be a major negotiating factor.
Q: Is the DDF still non-refundable if there are termites, structural issues, or something major?
A: Yes. In NC, the Due Diligence Fee is non-refundable for any reason if you terminate—termites, structural issues, financing stress, cold feet, anything. Think of it as paying for the opportunity to investigate and decide, not a guarantee you’ll proceed. There are a few exceptions, but they are rare.
Q: What happens to my DDF and EMD if I close?
A:
- DDF (NC): Since your due diligence fee is paid to the seller at the start of your contract it is considered a deposit that you paid in advance toward the purchase of the home and is credited toward your cash-to-close on the settlement statement.
- EMD (NC/SC): Your earnest money deposit is also credited toward your cash-to-close (down payment/closing costs) on the settlement statement.
Due Diligence FAQs
Q: What does “due diligence” mean in plain English?
A: It’s your time to double-check everything about the home and property—condition, value, rules, and deal-breakers—before you’re fully locked in.
Q: What inspections should I consider, and are they required?
A: The simple answer is: whatever is important to you. A general home inspection is usually the first step. Then, based on what it finds—or what concerns you—you can decide whether to bring in specialists (roofer, plumber, electrician, HVAC tech, foundation specialist, etc.). Your real estate agent can guide you based on that specific property. In my practice, I share a list of all the different inspections available to help you decide.
Q: Do I really need a survey?
A: Not always. But sometimes it can matter a lot, especially if there’s a fence, pool, shed, driveway, or add-ons near the property line. Even if neighbors get along today, a survey protects you if things change later.
Example: the neighbor sells, the new owner realizes your fence is over the line, and now you have to move it. A survey helps you catch that upfront—when you still have leverage to negotiate or terminate the contract before the home is officially yours.
Q: How much does a survey cost, and how long does it take?
A: Typically $800–$1,500, and it can take up to approximately four weeks, depending on availability. If you want one, order it as soon as you go under contract so it’s back before due diligence ends.
Q: Do I have to get an appraisal?
A:
- Cash purchase: optional.
-
Mortgage purchase: usually required by the lender.
- Possible exception: some lenders may waive it in certain scenarios (often with a large down payment—commonly around 40%+, but it varies).
Q: What if it doesn’t appraise at contract price—what are my options?
A: Common options include:
- Renegotiate price to appraised value
- Split the difference of the appraised value and contract price with the seller
- Bring extra cash to cover the gap
- Challenge the appraisal (reconsideration of value)—possible but often difficult
- Switch lenders (sometimes; timing and rules vary)
- Terminate (depends on contract terms and timeline; NC buyers may lose DDF and possibly risk EMD depending on timing)
Repairs FAQs
Q: “If something comes up in the inspections, the seller has to fix it… right?”
A: Not necessarily.
- NC: Homes are technically sold as-is, per the standard contract. You can request repairs or credits, but the seller can agree to all, some, or none.
- SC: Similarly, inspection findings create negotiation opportunity, but don’t automatically force repairs. Your rights and timelines depend on your SC contract terms.
Q: Should we ask the seller to repair it, or ask for a credit?
A: Strategy matters and it depends on the item.
When it’s often better to request the seller repair:
- Safety issues (electrical hazards, active leaks, unsafe railings)
- Loan-required items (some loans require specific repairs)
- Major systems you want working day one (HVAC, major plumbing)
When a credit can be better:
- you want control over contractor/quality
- timing is tight and repairs could delay closing
- it’s cosmetic or preference-based
- you’d rather handle it after you own the home
How I handle this as a business practice:
As a real estate agent, my approach is to review the inspection reports with you, help you prioritize what truly matters, and then help you gather quotes so we’re not negotiating based on guesses. From there, we submit a repair request that matches the strategy for that transaction: sometimes pushing for the seller to complete repairs prior to closing, other times negotiating a credit so you can choose the contractor and timing after closing. Every house, seller, and timeline is different—so the “right” approach is customized. Also, lender rules can limit how credits are applied, so we always strategize based on those loan terms and keep your lender in the loop.
HOA and Special Assessment FAQs
Q: What are “special assessments” in plain English?
A: A special assessment is a one-time (or short-term) extra charge an HOA (or sometimes a municipality) votes to collect for a big specific expense—like roofs, roads, drainage, storm damage, pool or clubhouse renovations, etc. This is not your regular HOA dues, and it’s not just a small incremental increase. It’s typically proposed, voted on, and approved, then billed as a lump sum or installments.
Q: Who pays the special assessment?
A (NC): Seller generally pays at closing all special assessments approved (voted on and passed) prior to settlement, even if payable in future installments. The amount the seller pays is determined on what the total balance is, provided by the HOA directly.
A (SC): Depends on which contract option is selected (often either seller pays if approved pre-closing, or seller pays the portion due in the calendar year of closing and buyer pays future years).
Pro tip: Ask early if any special assessments are pending/proposed/discussed—“not approved yet” can still be a real risk.
Q: I need to sell my current house to qualify. Can I submit a contingent offer?
A (NC): You can, but NC no longer has a built-in contingency that protects all deposits the way many buyers assume (2019 change). There may be strategies to reduce EMD risk—talk with your agent early, before writing offers.
A (SC): SC commonly uses specific form language (Form 504) to address a sale contingency more cleanly, but the details and timing still matter.
Q: That sounds risky in NC—are there work-arounds?
A: Sometimes, yes—bridge loans, HELOCs, certain buy-before-you-sell programs, sell first + rent-back, and other strategies depending on your situation. This is actually something I'm a big advocate of because I want the strategy and your move to feel aligned & seamless. I can help you sort what’s realistic and connect you with lenders who offer those solutions.
Q: How long is it typically between the time my offer is accepted and I'm able to move in?
A: Most contract periods are somewhere between 30-45 days, with the inspection period ending sooner. Your agent will discuss what timeline terms may be the most competitive and aligned with your overall strategy.
Q: What do I pay for between contract and closing on a new house?
A: Common items include:
- DDF (NC) + EMD (per deadlines)
- Inspections (general + specialists)
- Appraisal (if lender-required; often paid before closing)
- Survey (if desired/needed)
Q: Do I get keys at the closing table?
NC: The property isn't officially yours until the deed transfer has been recorded with the county. How long does that take? It's often the same day, but depends on signing time, county's queue size, and lender funding. Sometimes keys are released after signing and funding confirmation with seller permission—there’s risk if something happens before recording insurance or possession disputes. It’s usually safest not to schedule movers for closing day unless you already know early possession will be allowed or plan for the movers to begin the next day.
SC: Typically once everything is signed and funded (buyer + lender funds are already confirmed to be received by the closing attorney) then the keys will be provided at closing.
Seller proceeds timing: Usually follows the same “signed + funded + disbursed” timeline (often same day, sometimes next business day depending on wire cutoffs/recording).
Q: Does the fridge, washer, and dryer stay when I buy a house?
A: Only if it’s negotiated and written into the contract—don’t assume. Generally, fixtures that are attached to the home usually stay (dishwasher, stove/oven, lighting, built-ins, plumbing fixtures, etc.) unless noted upfront that they do not convey with the sale, but if you want something specific—fridge, washer/dryer, curtains, playset, etc—spell it out in the offer.
Home Warranty FAQs
Q: What does a home warranty cover?
A: It depends on the company/plan, but many cover certain repairs/replacements for HVAC, plumbing, electrical, water heater, and most appliances. Expect service call fees, coverage caps, and exclusions. It’s not homeowners insurance.
Q: How much is home warranty?
A: Often $600–$900, depending on coverage and add-ons.
Q: Who pays the home warranty?
A: Negotiable—seller, buyer, split, or credited as part of negotiations.
Buying a house and getting under contract is exciting—the start to your new chapter in a new home! After working with many buyers and sellers, I know the process can feel complex and overwhelming. Hopefully understanding these definitions will help simplify the process for you. But remember—there's no replacement to working with a real estate agent you know and trust. We can help you navigate this entire process!
So if you're looking to buy or sell your home in Charlotte, elsewhere in North or South Carolina or further afield, let's chat. I'd love to help you get into your dream home!
To closing on your new home!
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About Me
I'm Jamie Milam, a determined AF woman who's embraced life after divorce by finding peace through self-awareness, intentional decision-making, and thrilling new travel adventures.
As a Realtor® in Charlotte, NC (and your connection to top agents nationwide), I’m passionate about guiding you through your homeownership and design goals—while also helping you create space for the things you love. My mission is to empower you to create a life of alignment too - at home, abroad, and within.
Whether it’s through real estate tips, home design inspiration, or solo travel experiences, I hope this space encourages you to discover deeper self-awareness and build a life that aligns with your passions and needs.
Have you scoped the podcast series that empowers women to make aligned decisions in a divorce?
Your Free Charlotte City Guide
Jamie Milam is a Realtor® in the Charlotte, NC area, licensed in both NC & SC, and has the ability to refer you to a number of agent partners across the nation, regardless of where you may live. She is an enthusiast for the power of awareness and believes it can be used in all facets of life to support aligned living.
**Disclosure** This post may contain affiliate links and they are at no additional cost to you, though I may earn a small commission. Don't worry, I only recommend products or services that I have tried or believe would be of great value to you! All opinions expressed are those of my own!
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