How do I handle multiple or backup offers without violating an agreement I’ve already signed? – North Carolina

Short Answer

Under North Carolina law, once a seller signs a binding purchase contract, that seller must honor it and cannot simply accept a better offer for the same property without risking breach of contract. Additional offers can be treated only as “backup” contracts that clearly state they are contingent on the first contract ending. The key is to follow the first contract’s cancellation terms and deadlines, and to put any later offers in true backup position, not as competing obligations.

Understanding the Problem

The question is whether a North Carolina seller who has already signed a residential real estate purchase contract can consider or sign additional or backup offers without violating that first agreement. This comes up when a seller signs a contract, then receives a higher or more attractive offer before closing. The concern is how to respond to later offers while staying within the duties and timelines created by the first signed contract.

Apply the Law

North Carolina treats a signed real estate contract as a binding agreement that sets each party’s rights and remedies. The standard residential form typically sets a due diligence period, earnest money rules, closing date, and default remedies. A seller may receive more offers, but cannot enter another conflicting primary contract for the same property while the first one is still in force. Later offers may only be structured as backup contracts that activate if the first contract is properly terminated or fails under its terms.

Key Requirements

Valid primary contract: There must be a signed, enforceable purchase contract that controls the seller’s obligations until it ends or is terminated under its terms.
Clear backup status for later offers: Any later contract must state that it is a backup and becomes effective only if the primary contract is terminated according to its terms.
Proper termination or failure of the first contract: The first contract must be cancelled or lapse under its written conditions before any backup contract moves into primary position.

What the Statutes Say

N.C. Gen. Stat. § 39-39 (Risk of loss in real estate contracts) – Explains how real estate purchase contracts allocate risk between contract signing and closing, reinforcing that the signed contract governs rights and duties unless it says otherwise.
N.C. Gen. Stat. § 47E-5 (Time for required disclosures and cancellation rights) – Addresses required seller disclosure timing and limited buyer cancellation rights, which can affect when a primary contract may be cancelled without penalty.

Analysis

Apply the Rule to the Facts: With no specific facts given, consider two simple scenarios. In one, a seller signs a primary contract with a due diligence period and later receives a higher offer; the seller must still honor the first contract and may only accept the second as a clearly labeled backup that activates if the buyer under the first contract cancels or fails to close under the contract terms. In another, the primary buyer properly terminates during the agreed due diligence period; once that termination is effective under the contract, the seller is free to move a previously signed backup contract into primary status or sign a new primary contract with another buyer.

Process & Timing

Who files: Typically, no court filing is needed just to handle multiple offers. Where: The key work happens among the parties, their real estate agents, and closing attorneys in North Carolina. What: Use a written purchase contract and, for later offers, a written backup addendum or contract that clearly states it is subordinate to an existing primary contract. When: Backup offers should be documented while the first contract is still active, and the first contract must be terminated in writing under its terms before any backup becomes primary.
Once the primary contract ends (for example, timely termination during due diligence or documented failure of a contingency), the seller and closing attorney confirm in writing that the first contract is no longer in force, and then confirm with the backup buyer that the backup contract has moved into primary position and set or confirm the new closing timeline.
After a backup becomes primary, the transaction proceeds like any other North Carolina closing: the parties complete due diligence and financing steps, the closing attorney conducts title work, and the deed and deed of trust are signed and recorded to complete the sale.

Exceptions & Pitfalls

Some contracts allow limited termination rights tied to disclosures or title problems; ignoring those terms while pursuing a better offer can lead to a breach claim.
Signing a “backup” contract that does not clearly state its contingent status can unintentionally create conflicting obligations for the same property.
Failing to document termination of the first contract in writing before treating a backup as primary can create disputes about which buyer has rights to specific performance or damages.

Conclusion

In North Carolina, a seller who has already signed a purchase contract must treat that agreement as controlling until it ends or is properly terminated under its written terms. Later offers must be structured as true backup contracts that only become effective if the primary contract is cancelled or fails as allowed by those terms. To avoid breach, the next step is to review the first contract’s termination and timing provisions and ensure that any later offer is documented as a backup that activates only after the first contract has ended.

Talk to a Real Estate Attorney

If a signed real estate contract exists and multiple or backup offers are now on the table, our firm has experienced attorneys who can help explain the options, risks, 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 there is a deadline, act promptly and speak with a licensed North Carolina attorney.