What is the real difference between South Carolina’s due diligence and the repair process once inspections start? If you are buying or selling in Beaufort, the answer can determine how much leverage you have, what you spend, and whether you close on time. You want clarity before you put money on the line. In this guide, you’ll learn exactly how due diligence works in South Carolina, how repair negotiations play out in Beaufort, and what local rules can add time or cost. Let’s dive in.
Due diligence vs repair procedure
What due diligence covers
In South Carolina, due diligence is a negotiated period in your contract when you investigate the property and decide whether to move forward. You use this time to order inspections, check title and surveys, confirm financing and insurance, and understand any environmental or permitting constraints. If you terminate within the due diligence period following the contract terms, you typically keep your earnest money, but the seller keeps the due diligence fee.
How the due diligence fee works
The due diligence fee is paid directly to the seller when the contract is signed. It compensates the seller for taking the home off the market while you do your homework. If you close, it is usually credited to the seller at closing. If you terminate within the due diligence window, the fee is generally nonrefundable to you. Because of that, you should front-load inspections, quotes, and lender or insurance checks as soon as the clock starts.
Earnest money vs due diligence fee
Earnest money is separate from the due diligence fee. Earnest money often goes into escrow and may be refundable depending on contract contingencies. The due diligence fee goes to the seller and is not returned if you walk away during due diligence. Your contract will govern exact timelines and remedies, so follow those dates closely and deliver notices in writing.
How repairs are negotiated in Beaufort
Inspection contingency and timelines
Most South Carolina contracts allow you to obtain inspections and then submit a written repair request or notice of unsatisfactory conditions. You need to do this within the deadlines spelled out in your contract or within the due diligence period. Your request can ask the seller to complete repairs, offer a credit, reduce the price, or allow you to terminate per the contract. Keep it itemized and evidence-based with inspector findings and, when possible, contractor estimates.
Lender and appraisal requirements
Your lender may require certain issues to be repaired before your loan funds. This is common with government-insured loans. The FHA’s Single Family Housing Policy Handbook and the VA’s Lenders Handbook outline program-specific standards. An appraisal can also flag repairs that must be completed before closing or satisfied through a lender-approved repair escrow. Ask your lender early whether they allow escrowed repairs and what documentation they require.
Permits and licensed contractors
Repairs that alter electrical, plumbing, structural, or HVAC systems typically need permits and licensed contractors. In Beaufort County and the City of Beaufort, confirm requirements with the Beaufort County Building Codes office or the city’s planning department. To verify contractor licensing, consult the South Carolina Department of Labor, Licensing and Regulation. If permits or inspections are needed, schedule them early so you do not miss your closing date.
Beaufort-specific factors to check early
Flood zones and insurance
Beaufort’s coastal setting means many properties lie in FEMA flood zones. Flood status can affect your mortgage requirements and insurance premiums. During due diligence, review maps at the FEMA Flood Map Service Center and request your own flood insurance quotes. If an elevation certificate is needed, build in time to obtain it. Understanding your flood risk and cost early helps you decide whether to proceed or negotiate credits.
Historic district review
If you are under contract in the City of Beaufort’s historic district, exterior work may require design review. Materials, methods, and even replacement choices can be limited. Before agreeing to seller-performed exterior work, check timelines and requirements with the City of Beaufort Historic Preservation Commission. Build extra time into your repair schedule if approvals are needed.
Septic, wells, and utilities
Some Beaufort County homes use septic systems or private wells. These systems should be inspected during due diligence, and repairs or replacements may require county or state approvals. For coastal or marsh-adjacent work, additional approvals can apply. Review coastal permitting with South Carolina DHEC’s Office of Ocean and Coastal Resource Management, and consult utility requirements with BJWSA if your repairs involve water or sewer connections.
Coastal climate wear and WDO
High humidity, salt air, and hurricane exposure can mean more moisture intrusion, corrosion, roof wear, and wood-destroying organisms. Plan for a licensed termite or WDO inspection, roof evaluation, and HVAC assessment. If crawlspaces or attics show moisture issues, get mold or moisture inspections and contractor estimates to support your negotiation.
The step-by-step timeline
Buyer due diligence checklist
- Day 1: Pay the due diligence fee per contract and schedule inspections immediately. Prioritize general home, WDO, and any septic or well tests if applicable.
- Days 1 to 3: Confirm your lender’s timeline and ask about repair escrow options. Order a survey and begin title review. Request flood insurance quotes and review FEMA maps and, if available, an elevation certificate.
- Mid-period: Study inspection reports, gather contractor estimates for significant items, and confirm whether any work will require permits or historic review. Distinguish safety and lender-required issues from cosmetic concerns.
- Before the deadline: Deliver a written, itemized repair request or a termination notice per contract terms. If you proceed, document all agreed repairs or credits in an addendum with clear amounts, timelines, and who is responsible for permits and final inspections.
- Pre-closing: If the seller will complete repairs, confirm that licensed contractors are used, permits are pulled if required, and final inspections are passed. If you accept a credit, confirm with your lender that the credit is allowed.
Seller response options
When you receive a repair request, you can accept and perform the repairs, offer a credit, counter with fewer items, or decline and risk termination if the contract allows. Many sellers prefer credits to avoid scheduling contractors and permits, especially for exterior or system-level work that can delay closing. If you do complete repairs, use licensed contractors and obtain permits and final inspections to avoid issues at closing and later resale.
Inspections to prioritize in Beaufort
- General home inspection focusing on structural, roofing, electrical, plumbing, and HVAC
- Wood-destroying organism inspection by a licensed professional
- Roof inspection that estimates remaining useful life
- Flood zone review, elevation certificate check, and insurance quotes
- Septic system inspection or evaluation and drainfield assessment where applicable
- Well water testing if the property is on a private well
- HVAC evaluation for corrosion from salt air
- Moisture or mold assessment for crawlspaces and attics
- Boundary survey and easement review, especially for island and marsh properties
- Lead-based paint disclosure review for pre-1978 homes
Negotiation outcomes and closing impacts
- Seller completes repairs with proof of permits and inspections. This option is straightforward when work is permitted and completed on time.
- Seller provides a credit at closing. You take on the work after closing, which can save time, but you assume scheduling and permitting later.
- Buyer accepts the home as-is. This can work for cash deals or minor issues, but lender or insurance requirements may still force repairs before funding.
- Buyer terminates during due diligence. The seller keeps the due diligence fee and you typically receive the earnest money, unless other terms apply.
How to avoid delays in Beaufort
- Order key inspections and your appraisal early. Lender-required items identified late can threaten your timeline.
- Confirm permit needs as soon as inspections point to electrical, plumbing, structural, or HVAC work. Submit permit applications promptly.
- If the property is in the historic district, calendar the review schedule and submission requirements before you agree on a repair timeline.
- For coastal or marsh-adjacent properties, confirm whether coastal or environmental approvals could apply to the planned work.
- Use detailed addenda. Specify which party secures permits, selects contractors, pays fees, and obtains final inspections.
- Get contractor availability and written estimates during due diligence. After storms or during peak season, scheduling can be tight.
Work with a local guide
Beaufort’s beauty comes with unique details like flood zones, historic review, and coastal permitting. A clear plan during due diligence and a practical repair strategy can protect your money and your timeline. If you are weighing credits versus completed repairs, or deciding how to sequence permits and inspections, our team can help you make confident, locally informed choices.
Talk with the Chambers Helms Group to map a due diligence plan tailored to your property and neighborhood, from downtown historic homes to Lady’s Island, Port Royal, St. Helena, and Fripp. If you are selling, we can also prepare a pre-listing strategy that anticipates buyer questions and streamlines repairs. Get Your Free Home Valuation.
FAQs
What is the due diligence fee in South Carolina?
- It is a negotiated, nonrefundable fee paid directly to the seller when the contract is signed. If you terminate during due diligence per the contract, the seller keeps the fee and you typically recover your earnest money.
How are repairs handled after inspections in Beaufort?
- You submit a written, itemized repair request within your contract timeline. The seller can accept, offer a credit, counter with fewer items, or decline. Any agreement should be documented in an addendum with clear responsibilities.
Do Beaufort repairs require permits or licensed contractors?
- Many electrical, plumbing, structural, and HVAC repairs require permits and licensed contractors. Check with Beaufort County Building Codes or the City of Beaufort and verify licensing through SC LLR.
How do flood zones affect buying in Beaufort?
- Flood zone status can impact your mortgage, insurance costs, and even repair or elevation requirements. Review the FEMA Flood Map Service Center and obtain your own flood insurance quotes during due diligence.
What if my loan is FHA or VA and the appraiser cites repairs?
- FHA and VA can require certain repairs before funding. Ask your lender about repair escrows and consult the FHA Handbook or VA Lenders Handbook for guidance.
Are there extra steps for historic homes in the City of Beaufort?
- Yes. Exterior changes in the historic district may need design approval. Plan your timeline with the Historic Preservation Commission review schedule in mind.
Who handles coastal or marsh-adjacent permits for repairs?
- Some shoreline or marsh-adjacent work may require review by DHEC’s OCRM. Confirm early if your planned work triggers coastal permitting.
