Breach of Contract

Once a seller signs a purchase contract in North Carolina, the legal options to exit are extremely limited. Unlike buyers, who have broad termination rights during the due diligence period, sellers who want to back out of a signed contract face significant legal exposure, including the possibility of a lawsuit for specific performance that could force them to complete the sale. The only situations where a seller can legally terminate without buyer consent are when the buyer fails to deliver the due diligence fee or earnest money on time, or when the buyer materially breaches another term of the contract. Everything else puts the seller at legal risk.