buyer is committed to buying the home. There are obviously legal considerations and a few loopholes to consider here that you should consult a real estate attorney about. As you are writing a Due Diligence check directly to the seller that is (generally) non-refundable, it shows you have a strong commitment to buy. Note that you don't owe this money until the sellers have accepted the offer and returned a signed copy to you or your agent. A large amount of Due Diligence money is a strong indicator of your interest. The sellers get to keep that money unless they misrepresented something or some other legal technicalities apply. (For more specifics, please consult an attorney with real estate experience.) Earnest Money is different. It is held in escrow and would normally be returned to you, the potential buyer, if the sale doesn't go through. (Once again subject to various legal considerations that you should discuss with a qualified attorney). The fact that it is returnable to the buyer makes Earnest Money a much weaker proposition for the seller. In the Southern Pines/Pinehurst region where I do much of my business, we rarely see Earnest Money deposits. Sellers rely on Due Diligence money when they are considering offers. Another difference from many other states is a separate category of ownership for married couples called "Tenants by the Entirety." Tenants by the Entirety basically designates property as owned by the marriage, not either spouse. If one spouse dies, the other spouse immediately takes ownership of the property. It also means that one spouse can't sell without the other spouse's consent. Once again, I'm not an attorney, so PLEASE have a discussion with a real estate attorney who can walk you through the implications. I'll just mention here that there are other categories of ownership: Tenants in Common and Joint Tenants (with or
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