The period of Due Diligence (D.D.P.) is the complete legal research of the property from your attorney/notary to insure there are no liens, contingencies, legal issues, and that it has absolute fee simple title.
Surveys, availability of water, soil tests, home inspections, inventories and other studies requiring professional services are included in this period. If the property is being sold with an existing company, then the research of the company for any legal contingencies will also be completed during Due Diligence.
Anytime during the DD period (between 15-30 days), the buyer has the option to cancel the contract and get their deposit back with No penalty. At the end of the Due Diligence period, assuming there are no issues with the property, the deposit becomes Non refundable and stays in escrow until time of closing, to be applied towards the purchase price.