Buying in Gallatin and hearing everyone talk about the due diligence period? Those days can make or break your deal. You want enough time to inspect, confirm financing, and feel confident before you commit. In this guide, you’ll learn how Tennessee’s due diligence period works, what to check in Sumner County, and how to keep your contract on track from offer to close. Let’s dive in.
What due diligence means in Tennessee
The due diligence period is a negotiated window in your purchase contract when you can investigate the property. You can inspect, review title, confirm financing, and decide whether to move forward. The exact rights and deadlines come from the Tennessee REALTORS standard contract language you sign.
During this period, you can usually terminate by the deadline according to the contract instructions. If you continue, you’re signaling that you are satisfied with inspections and ready to proceed toward closing.
Due Diligence Fee vs. earnest money
In Tennessee, the Due Diligence Fee is typically paid to the seller. Earnest money is usually held by a title company or escrow agent. These two items are different and are handled by separate contract terms. Make sure you understand who holds each, if either is refundable, and when.
Your termination rights and notices
Your contract sets how to give notice, who receives it, and when it must arrive. Confirm whether days mean calendar or business days, and the exact time a deadline expires. Put those deadlines on your calendar and send any notices in writing the way your contract requires.
Common Gallatin contingencies
Most Gallatin offers include a mix of these contingencies. Each one protects you in a specific way.
- General home inspection contingency
- Financing contingency
- Appraisal contingency
- Title review contingency
- Survey contingency
- HOA and CCR document review
- Septic and well inspections for properties not on city services
- Specialty inspections: radon, mold, lead-based paint, and wood-destroying organisms
Inspections that matter in Sumner County
- Septic systems. Many homes outside municipal service areas use septic. Review permit history and order a septic inspection.
- Well water. If the property has a private well, test for bacteria and nitrates.
- Flood risk. Areas near Old Hickory Lake and local creeks may lie in FEMA flood zones. Confirm floodplain status and potential insurance needs.
- Foundation and soil. Middle Tennessee soils can vary. Be alert to settlement signs, especially in older homes.
- Wood-destroying insects. Termite and wood-borer inspections are common.
- Older home issues. For pre-1978 homes, discuss lead-based paint. Also check older electrical and HVAC components.
Typical timelines to expect
Local norms can shift with the market, but these ranges are common for resale homes in Middle Tennessee. Always rely on your executed contract for exact dates.
- Due diligence period: often 7 to 14 days; shorter windows of 3 to 5 days can occur in multiple-offer situations. New construction or complex properties may need 30 days or more.
- Inspection scheduling: aim for the first 48 to 72 hours after contract.
- Home inspection report: often delivered within 24 to 72 hours after the inspection.
- Specialist inspections: septic, well, and radon should be scheduled immediately. Water tests can take several days.
- Appraisal ordering and delivery: lenders often order within 3 to 7 business days after contract; turn time is often 3 to 10 business days.
- Title commitment: many title companies target 5 to 10 business days.
- Surveys: 1 to 3 weeks depending on scope and workload.
Standard 10-day scenario
- Day 0: Contract signed. You pay the Due Diligence Fee and earnest money as agreed.
- Days 1–3: General home inspection. Schedule septic and well inspections if needed.
- Days 3–5: Specialist inspections and lab work.
- Days 6–8: Review reports and negotiate repairs or credits.
- Day 9: Decide to proceed or terminate and notify in writing.
- Day 10+: Lender moves forward with appraisal; title company prepares commitment.
Fast 3–5 day strategy
A short window requires immediate scheduling and quick decisions. Some buyers request fewer repairs or accept more items as-is to stay competitive. Know the tradeoffs before you offer.
When you need 14+ days
New construction or unique properties may require more time for inspections, municipal records, or lender review. Longer periods are negotiable and may require a higher Due Diligence Fee.
Keep your contract on track
Use this checklist to protect your timeline and options.
Before you write an offer
- Get a written pre-approval from your lender.
- Line up inspectors and specialists familiar with Gallatin and Sumner County.
- Learn local norms for due diligence length so you can craft a competitive offer.
Right after ratification
- Pay the Due Diligence Fee and earnest money, and keep receipts.
- Schedule the general home inspection within 24 to 48 hours.
- If the home is on a well or septic, schedule those inspections immediately.
- Request seller disclosures and records such as septic permits, repair invoices, and HOA documents.
- Confirm appraisal ordering and underwriting timelines with your lender.
During the due diligence period
- Read reports quickly and choose your path:
- Accept the property as-is
- Request specific repairs or a closing credit
- Terminate within your deadline using written notice
- If you need more time, ask for a written extension. You may offer an additional fee to secure it.
Financing and appraisal
- If the appraisal is low, you can seek a price reduction, bring extra cash, or use your appraisal contingency to walk away.
- If underwriting slows down, update your lender often and request extensions in writing when needed.
Title and survey
- Review your title commitment. Raise any objections before the deadline.
- Common issues include liens, unpaid taxes, or document errors. Most can be cleared with time and cooperation.
Documentation and deadlines
- Track every deadline and set reminders a few days early.
- Send notices the way your contract requires and save proof of delivery.
When the seller pushes back on repairs
- Negotiate in writing with specifics and supporting pages from the report.
- You may receive a partial repair agreement, a credit, or a refusal. Decide whether to proceed or terminate within your window.
Local checks for Gallatin
Plan early so local factors do not surprise you near closing.
- Floodplain review. Confirm whether the property sits in a FEMA flood zone, especially near Old Hickory Lake and local creeks.
- City services. Verify if the home is on Gallatin municipal water and sewer or on private well and septic.
- Septic records. Request permit history from county environmental or health departments when available.
- Permits and zoning. If there were additions or conversions, confirm permits with Sumner County or the City of Gallatin.
- Historic or HOA restrictions. Review covenants, conditions, and restrictions, and any local district rules.
- Local vendors. Choose inspectors who understand Middle Tennessee crawlspaces, humidity, and foundations, plus septic and well specialists.
- Records access. The Sumner County Register of Deeds, Trustee, and Building/Planning offices, along with City of Gallatin utilities and permitting, are primary sources for recorded documents, tax status, and permits.
Buyer and seller tips
If you are buying
- Anchor your offer with a realistic due diligence length based on inspector availability.
- Balance your Due Diligence Fee and timeline to stay competitive while protecting your interests.
- Ask for repair credits when speed matters, especially if contractors are booked.
If you are selling
- Gather documents before listing: disclosures, permits, warranties, and septic records.
- Make the home easy to inspect and keep utilities on for all appointments.
- Respond quickly to repair requests to avoid delays or extensions.
A smooth due diligence period comes down to clear deadlines, fast scheduling, and steady communication. If you want a hands-on guide who can coordinate inspectors, track milestones, and keep everything moving, connect with the Janelle Sells Team. We are here to help you move forward with confidence in Gallatin and across Middle Tennessee.
FAQs
What is the due diligence period in Tennessee real estate?
- It is a negotiated time in your contract when you can inspect, review title, confirm financing, and decide whether to proceed or terminate by the deadline as the contract allows.
How is the Due Diligence Fee different from earnest money?
- The Due Diligence Fee typically goes to the seller, while earnest money is usually held in escrow. Each is handled by different contract clauses and may have different refund rules.
How long is a typical due diligence period in Gallatin?
- Many resale contracts use 7 to 14 days, though 3 to 5 days can appear in competitive situations and 30+ days can apply to new construction or complex properties.
What inspections are most important in Sumner County homes?
- General home, septic, well water (if applicable), termite and wood-destroying organisms, foundation, and specialty tests like radon or mold as needed.
What happens if the appraisal comes in low during due diligence?
- You can ask for a price reduction, bring extra cash, or use your appraisal contingency to terminate if the contract allows.
How do I terminate within my due diligence window?
- Deliver written notice the way your contract requires, to the correct recipient, before the deadline. Keep proof of delivery.
Where can I check local records for a Gallatin property?
- Sumner County offices for deeds, taxes, and permits, and City of Gallatin utilities and permitting for service status and municipal records are common sources.
