Real Estate Q&A Series

Can I demand repairs or a price adjustment for undisclosed structural damage in a real estate sale? – North Carolina

Short Answer

In North Carolina, you generally cannot unilaterally demand repairs or a price change once a home is under contract. Changes require a written amendment signed by both buyer and seller, usually negotiated during the contract’s due diligence period. If you learn about a new material defect, promptly disclose it and decide—consistent with your fiduciary duties if you are handling an estate—whether to offer repairs, a credit, or hold firm and let the buyer choose whether to proceed.

Understanding the Problem

North Carolina sellers ask: can I require the other side to accept repairs or a price cut after an inspection uncovers hidden structural damage? Here, the seller is handling a relative’s house in North Carolina and learned of a hole cut in the flooring substrate after the buyer’s inspection. The question is how a seller—especially one acting for an estate—may respond and what can be compelled versus negotiated before closing.

Apply the Law

North Carolina residential sales are contract-driven. The buyer typically has a due diligence period to inspect and request concessions; any change to price, repairs, or credits must be in a written amendment signed by both parties. Separate from contract rights, sellers must deal honestly with known material facts about the property’s condition. When the seller is a personal representative of an estate, they must act prudently and in the estate’s best interest, document decisions, and ensure they have authority to sell and sign amendments.

Key Requirements

  • Written agreement for changes: Repairs, credits, or price adjustments require a signed contract amendment—neither side can force unilateral changes.
  • Due diligence timing: Concessions are typically negotiated and finalized before the buyer’s due diligence deadline in the contract.
  • Material-fact updates: If you learn of new significant defects, promptly inform the buyer; withholding known material facts can create legal exposure.
  • Estate fiduciary duties: If selling as a personal representative, act prudently, preserve estate assets, and document the cost/benefit of repairs versus credits.
  • Authority to sell (estate sales): Confirm you have legal authority to sell and sign any amendments; certain estate sales require the personal representative’s participation and, in some cases, court involvement.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The buyer’s inspector found a hole in the flooring substrate that you then verified. You cannot force a price cut or repairs; any change requires a written amendment. Given the new information, promptly update the buyer and evaluate options. If you are acting as the estate’s personal representative, your fiduciary duty means weighing the cost, timing, and impact on the sale proceeds to decide whether to offer repairs, a credit, or no change.

Process & Timing

  1. Who files: No court filing is needed to negotiate; the seller (or personal representative) acts through their broker or attorney. Where: Contract amendment exchanged between the parties. What: A written amendment addressing repairs, a credit, or price change. When: Before the buyer’s contractual due diligence deadline.
  2. Obtain a contractor’s written estimate and share material facts with the buyer. Propose a specific amendment (e.g., repair scope by a licensed contractor before closing or a closing credit).
  3. If agreement is reached, both sides sign the amendment. If not, the buyer may proceed as-is, negotiate further, or terminate per the contract’s due diligence terms.

Exceptions & Pitfalls

  • Estate-sale authority: Confirm you, as personal representative, have authority to sell and sign amendments; some transactions within two years of death require the personal representative’s participation and creditor notice steps.
  • Disclosure traps: Once you know of a significant defect, do not ignore it—update the buyer. Concealment can lead to disputes or rescission risk.
  • Family interference: Well-meaning relatives communicating with the realtor can complicate negotiations. Keep the personal representative as the sole decision-maker and document directions to the broker.
  • Broker issues: If a broker acts improperly, elevate concerns to the firm’s broker-in-charge. Keep communications professional and in writing.
  • Post–due diligence leverage: After the due diligence period, buyers usually have fewer options to force repairs or price changes; expect harder negotiations.

Conclusion

Under North Carolina law, you cannot require the other party to accept repairs or a price reduction after undisclosed damage surfaces. Changes must be negotiated and documented in a signed amendment, typically before the due diligence deadline. If you are selling as a personal representative, act in the estate’s best interest: disclose new material facts and decide whether to offer repairs, a credit, or proceed as-is. Next step: get a contractor’s estimate and circulate a proposed amendment before the due diligence date.

Talk to a Real Estate Attorney

If you’re dealing with a contract negotiation after an inspection revealed structural damage, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at 919-341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.