How do I cancel an assigned real-estate contract the right way when the end buyer keeps missing the closing date? – North Carolina

Short Answer

In North Carolina, canceling an assigned real-estate contract usually turns on the written contract terms: whether the closing date is truly a hard deadline (often called “time is of the essence”), what notice-and-cure steps are required, and what the assignment says about default and termination. The safest approach is typically to (1) document the end buyer’s missed deadlines, (2) send a written notice of default that demands performance by a specific date, and (3) terminate in writing if the end buyer still does not perform—while also coordinating with the closing attorney/escrow holder about any deposit. Because a wrongful termination can trigger claims, the “right way” depends on the exact contract language and how the assignment was drafted.

Understanding the Problem

Under North Carolina real-estate practice, the core question is: when an assignor transfers a purchase contract to an end buyer, and the end buyer repeatedly misses the scheduled closing date, can the assignor cancel the deal without creating new liability. The decision point is whether the end buyer’s missed closing dates amount to a contract default that allows termination, and whether the contract requires a specific written notice and an opportunity to cure before termination becomes effective. The practical goal is a clean paper trail that shows the end buyer was given the contract-required chance to close and still failed to perform.

Apply the Law

North Carolina generally enforces written real-estate contracts as written. That means the termination process is usually controlled by (a) the original purchase contract, (b) any addenda extending closing, and (c) the assignment agreement between the assignor and the end buyer. Missing a closing date can be a breach, but whether it is an immediate, termination-level breach often depends on whether the contract makes timing a strict condition and what notice provisions apply. In most transactions, the closing attorney (settlement agent) holds any earnest money deposit and will look to the contract (and sometimes written direction from the parties or a court order) before releasing funds.

Key Requirements

Contract authority to terminate: The written contract (and any extension addenda) must allow termination for failure to close, and it must be clear who has the right to terminate after an assignment.
Proper written notice (and any cure period): If the contract requires notice of default and a chance to cure, termination usually is not “the right way” unless that notice is sent in the method and timeframe the contract requires.
Clean handling of deposits and documents: Termination should be communicated to the other side and the closing attorney, with a plan for earnest money/disbursements and for confirming the transaction is canceled on the calendar and in writing.

What the Statutes Say

N.C. Gen. Stat. § 47E-5 (Time for disclosure; cancellation of contract) – Provides a narrow, statute-based cancellation right tied to late delivery of required residential disclosure forms; it does not replace other contract-based termination rights.

Analysis

Apply the Rule to the Facts: Here, the end buyer has repeatedly missed the agreed closing date(s) and has not performed as required. That pattern supports a default argument, but the “right way” to cancel depends on whether the contract treats the closing date as a strict deadline and whether the contract requires a written notice of default and an opportunity to cure before termination. The assignment also matters: if the assignor remains on the hook to the original seller, the assignor usually needs to terminate the end buyer relationship in a way that preserves the assignor’s ability to perform (or renegotiate) with the seller.

Process & Timing

Who sends notice: Usually the assignor (and sometimes the original buyer-of-record under the purchase contract, depending on how the assignment was structured). Where: Delivered to the end buyer using the delivery method required by the contract (often email plus certified mail, overnight delivery, or hand delivery—whatever the contract specifies). What: A written “Notice of Default” (or similarly titled letter) that lists the missed closing date(s), states what performance is required to cure (for example, proof of funds and scheduling closing), and sets a firm deadline to close. When: As soon as the end buyer misses the deadline and it is clear performance is not happening; if the contract has a notice window or cure period, follow it exactly.
Coordinate with the closing attorney: Ask the closing attorney to confirm what is needed to reschedule closing and what documentation they need if the transaction is being terminated. If earnest money is held in trust, ask what the escrow disbursement process is under the contract and local practice if the parties disagree.
Terminate in writing if the cure deadline passes: Send a written termination/cancellation notice that references the prior default notice, states the cure deadline passed without performance, and confirms the contract (and assignment, if applicable) is terminated. Provide a copy to the closing attorney so the file can be closed out and the calendar cleared.

Exceptions & Pitfalls

“Time is of the essence” issues: If the contract does not make the closing date a strict condition, repeated extensions or informal rescheduling can weaken the argument that a missed date automatically ends the deal. A written notice that sets a firm deadline can help re-establish a clear timeline.
Assignment language that keeps the assignor liable: Many assignments do not fully release the assignor from obligations to the original seller. Canceling the end buyer relationship does not automatically cancel the original purchase contract, so the assignor may still need to address performance or termination with the seller side.
Earnest money disputes: Escrow holders often will not release a deposit based on one party’s demand alone if the other party objects. A termination letter should be paired with whatever the contract requires for deposit disposition, and sometimes the practical next step is negotiating a written release.
Notice delivery mistakes: Sending notice to the wrong address, using a method not allowed by the contract, or failing to clearly state what “cure” requires can create arguments that termination was ineffective.

Conclusion

In North Carolina, canceling an assigned real-estate contract after an end buyer repeatedly misses closing is usually a contract-driven process: confirm the termination right, give the contract-required written default notice (and any chance to cure), and then send a written termination if the end buyer still does not perform. The key threshold is whether the missed closing date(s) amount to a default that permits termination under the contract and assignment. The most important next step is to send a written notice of default that sets a firm cure deadline and follows the contract’s delivery rules.

Talk to a Real Estate Attorney

If a real-estate contract was assigned and the end buyer keeps missing the closing date, a careful termination plan can reduce the risk of a deposit dispute or a claim for wrongful cancellation. Our firm has experienced attorneys who can help evaluate the contract language, draft the right notices, and coordinate with the closing attorney on timelines and escrow issues. Call us today at [CONTACT NUMBER].

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.