Winston-Salem Home Seller and Buyer are both in breach of contract - which is more serious?

I'm going to go over an example where a Winston-Salem home seller and home buyer were both in breach of contract, and which was more serious.

First, the home seller refused to give the buyer the Residential Property Disclosure before the buyer made an offer - which they were required to do.

The buyer made an offer anyway. The offer was accepted, using the Standard Offer to Purchase Form 2-T. The seller still refused to give the property disclosure.

Because of this, the buyer refused to pay the due diligence fee.

Because the buyer didn't pay the due diligence fee, the seller did not allow the buyer to have access to the property to perform inspections.

To summarize the situation.

The consequence to the home seller for not providing the disclosures is that the buyer will receive a three-day window to terminate in which the Due Diligence Fee is refundable rather than non-refundable. So long as the seller is willing to risk this outcome, the seller may refuse the disclosures.

The buyer is obligated to pay the Due Diligence fee as soon as they are under contract, it is due by the effective date.

If they fail to pay, the seller has the right to terminate the contract, and the buyer would then be liable for not only the Due Diligence fee, but also any Earnest money deposits and attorney fees if they need to take legal action to recover.

The seller is still obligated to provide access to the property, even though the due diligence fee has been paid, but they are in the driver's seat in this example, because they can terminate the contract for the buyer's failure to pay the due diligence.

They would need to go through some steps first like providing written notice, etc.

The most important thing that needs to happen in this example is for the buyer to pay the due diligence fee. After they do that, they can apply pressure to make the seller give access to the property.

I think it's highly likely that the seller would provide access to the property once the due diligence was paid.

Being upset about the property disclosures seems overblown since the seller has the option of making no representation. They never should have made the offer in the first place if it was that important.

Previous
Previous

Can a Winston-Salem escrow agent release Earnest Money Deposit w/o home seller’s written consent?

Next
Next

Can a Winston-Salem listing agent advance the cost of a home seller’s repairs?