Sen. Everitt files bill in North Carolina Senate to regulate homebuyer due diligence funds

A new bill filed by State Sen. Terence Everitt seeks to regulate due diligence funds in real estate transactions to protect homebuyers and support homebuyer education, according to the North Carolina State Senate.

The bill, filed as SB 453 on March 24 during the 2025 regular session, was formally listed with the short title: ‘Homebuyer Fairness & Protection Act.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, the bill, titled the Homebuyer Fairness & Protection Act, aims to regulate due diligence funds in residential real estate transactions by capping them at 1% of the purchase price, rendering any contract provision requiring more as void and unenforceable. It defines due diligence funds as nonrefundable payments to sellers upon acceptance of a purchase offer for further investigation of the property. Sellers who violate this cap may be liable for court costs and attorneys’ fees. Additionally, the bill allocates $10 million in nonrecurring funds from the General Fund for the 2025-26 fiscal year to support homebuyer education through a grant to the North Carolina Housing Coalition. The due diligence fund limitation becomes effective Oct. 1, 2025, while the grant appropriation takes effect July 1, 2025.

Of the three sponsors of this bill, Lisa Grafstein proposed the most bills (45) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Everitt graduated from Rutgers University in 1997 with a BA and again in 2001 from Columbus School of Law with a JD.

Everitt, a Democrat, was elected to the North Carolina State Senate in 2025 to represent the state’s 18th Senate district, replacing previous state senator Mary Wills Bode.