What Constitutes Breach of Contract for Home Buyers and Sellers??

Paragraph 23 the standard offer to purchase 2-T identifies remedies for both the buyer and the seller in the event of a breach of contract.

But it’s only for a MATERIAL breach of contract.

Not every term in a contract is material, and a party’s failure to fulfill a non-material term will not be considered a breach.

The remedies in most circumstances will be retention of the due diligence fee and earnest money deposit by the seller. For a buyer, they can elect to terminate and recover the due diligence and earnest money deposits, along with any other costs they may have incurred - such as inspections and loan fees.

With regard to what is material, North Carolina Law gives criteria to help determine what constitutes a material term of a contract, but there’s no list.

A realtor can advise, but they can’t give you a definitive answer. It will often be wise to consult an attorney, but ultimately a definitive answer may not be able to be reached until you go to court or abitration.