How do I prove breach of contract for the sale of my home interest and recover damages? – North Carolina

Short Answer

In North Carolina, you prove breach of a real estate sales contract by showing: a valid written contract, your performance (or tender), the buyer’s nonpayment, and resulting damages. With a deed already delivered, you can sue for damages and specific performance (to compel payment) or ask a court for equitable remedies like rescission and cancellation of the deed for failure of consideration. File promptly and consider a lis pendens to give public notice of your title-related claims.

Understanding the Problem

In North Carolina, can a seller who already transferred title enforce the buyer’s promise to pay or unwind the transfer when the buyer has not paid for months? You are the seller. You want the court to either force payment under the sale contract or rescind the transfer because the buyer now claims full ownership without paying. The key trigger is the buyer’s prolonged nonpayment after you conveyed your interest.

Apply the Law

Under North Carolina law, breach of contract requires proof of a valid contract, your performance or tender, the other party’s breach, and damages. For land sales, courts may order specific performance when the contract is definite and fair and money is inadequate, because each parcel is unique. If the deed has already been delivered but the buyer failed to pay, you can pursue damages and equitable remedies, including rescission and cancellation of the deed for failure of consideration, if equity favors returning both sides to their pre-sale positions. Claims for money damages and title-affecting relief are filed as a civil action in Superior Court, typically in the county where the property lies or where the defendant resides. Deadlines apply.

Key Requirements

• Valid, signed contract: A written, signed agreement for the sale of land with essential terms (property, price, parties, closing obligations).
• Your performance or tender: You performed (e.g., executed and delivered the deed) or were ready, willing, and able to perform.
• Buyer’s breach: The buyer failed to pay the agreed price when due.
• Damages: Actual loss from the nonpayment (e.g., contract price owed, interest, and other proven losses).
• Equitable relief standards: For specific performance, the contract must be definite and fair; for rescission/cancellation, the failure of consideration must be material and you must be able to restore what you received.
• Forum and notice: File in Superior Court; a lis pendens can give public notice of your claim that affects title.

What the Statutes Say

• North Carolina Gen. Stat. § 22-2 (Statute of Frauds) – Contracts for the sale of land must be in writing and signed.
• North Carolina Gen. Stat. § 1-52 (Three-year limitation) – Most contract claims must be filed within three years of breach.
• North Carolina Gen. Stat. § 1-47(2) (Ten-year limitation for sealed instruments) – If the contract is under seal, a longer deadline may apply.
• North Carolina Gen. Stat. § 1-116 (Lis pendens) – Allows filing a notice of pending action affecting title to real property.

Analysis

Apply the Rule to the Facts: You executed and delivered documents transferring your interest—showing your performance. The buyer’s months-long nonpayment is a clear breach of the payment term. You can claim damages equal to the unpaid price (and other proven losses) and seek specific performance to compel payment. Because the deed already transferred ownership, you may also request equitable rescission and cancellation of the deed for failure of consideration if the court finds it fair to restore both sides to their pre-transfer positions.

Process & Timing

1. Who files: Seller. Where: Civil action in the Superior Court (typically in the county where the property is located or where the buyer resides). What: Complaint for breach of contract with claims for specific performance and, alternatively, rescission/cancellation of deed and declaratory relief; file a Notice of Lis Pendens under G.S. 1-116. When: File within the three-year contract statute of limitations (longer if a sealed instrument).
2. Serve the buyer under Rule 4. Expect initial scheduling, discovery, and often court-ordered mediation. You may seek interim relief to preserve the status quo if there is a risk of transfer.
3. Proceed to resolution by settlement, summary judgment, or trial. If rescission/cancellation is ordered, file the court’s order so the land records reflect the ruling; if you obtain judgment for payment, enforce the judgment through standard civil collection tools.

Exceptions & Pitfalls

• Statute of Frauds: A land-sale agreement must be in writing and signed; if key terms are missing, enforcement can fail.
• Merger by deed: Contract terms can merge into the deed at closing; frame claims to address nonpayment and equitable relief tied to the deed and failure of consideration.
• Tender and restoration: For rescission, be ready to restore what you received (if anything). Courts balance fairness before undoing a deed.
• Lis pendens: Without it, a third party may acquire interests without notice; file early to give public notice of your title-affecting claims.
• Defenses: The buyer may argue you materially breached first, lacked capacity to convey, or that conditions precedent were unmet; gather documents showing your performance and the buyer’s default.
• Deadlines change with formality: If your contract bears a seal, a different limitation period can apply—confirm before filing.

Talk to a Real Estate Attorney

If you’re dealing with a buyer who took title but didn’t pay and you need to enforce the sale or unwind the transfer, 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.