Residential Seller’s Breach Explained by North Carolina Real Estate Agent Eric Andrews

A Seller’s Breach occurs when a seller is under contract with a buyer but the seller does not have the ability to sell the property or the seller has made a significant omission regarding the sale of the property. When a seller is in breach, they are liable for a buyer’s due diligence expenses if they cannot remedy the breach.

Buyer’s Expenses

A seller’s breach is very serious as a buyer may be conducting a survey, having a well tested, getting inspections, having a septic tank inspected, obtaining termite inspections, appraisals, title searches and more. Of course, all of these expenses which take place during the home buying process may cost thousands of dollars.

Examples of Seller’s Breaches

Examples of seller’s breaches include, but are not limited to:

  • Seller fails to provide clear title to the property
  • Seller fails to disclose encroachments
  • Seller fails to disclose road maintenance agreements
  • Seller is separated or has a divorce which is not finalized

When a seller is in breach they must remedy the situation in order to convey the property.