Real Estate Q&A Series

What remedies exist if a realtor accepts a low offer without disclosing higher comparables? – North Carolina

Short Answer

In North Carolina, a seller can pursue claims against a broker for breach of fiduciary duty, misrepresentation, and unfair or deceptive trade practices if the broker pushes a low offer while withholding material market data. Remedies can include money damages (sometimes trebled), rescission before closing, disgorgement of the commission, and injunctions to pause a closing. Most civil claims are filed in Superior Court, and key filing deadlines range from three to four years depending on the claim.

Understanding the Problem

You’re asking whether, in North Carolina, a home seller can recover if their real estate broker accepts a low offer without sharing higher comparable sales. This is a real estate question about a broker’s duties to a seller and the remedies if those duties are breached. Here, one key fact is that the broker provided information to an estranged sibling more promptly than to the seller.

Apply the Law

Under North Carolina law, a broker representing a seller owes loyalty, full disclosure of material facts, and reasonable care. Failing to share relevant comparables or inspection information that affects price, credits, or negotiations can breach those duties. These disputes are civil claims filed in Superior Court (not with the Clerk), and typical deadlines include three years for negligence/breach of duty and four years for unfair trade practices, with some claims measured from when the problem was or should have been discovered.

Key Requirements

  • Fiduciary relationship: You and your broker had a relationship of trust that requires loyalty, candor, and due care in presenting and negotiating offers.
  • Breach: The broker withheld or delayed material information (e.g., higher comparables, inspection details) or favored another person’s interests over yours.
  • Causation and harm: The breach caused you loss (such as accepting a below-market price or unnecessary credits).
  • Constructive fraud (when applicable): If the broker used that position of trust to obtain a personal benefit, the law can presume unfairness and shift the burden to the broker to prove openness and fairness.
  • UDTP (unfair trade practices): A broker’s deceptive or unfair conduct in commerce can trigger treble damages and possible attorney’s fees.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The broker-seller relationship creates fiduciary duties. Withholding higher comparables, delaying inspection details, and favoring an estranged sibling’s access can show a breach of loyalty and disclosure. Accepting the lowest bid without sharing material market data can cause measurable loss (lower sale price/credits). If the broker personally benefited (for example, through side arrangements or favoritism), constructive fraud principles may apply, strengthening the seller’s remedies.

Process & Timing

  1. Who files: The seller. Where: Superior Court in the North Carolina county where the transaction occurred or where the defendant broker resides. What: Civil complaint alleging breach of fiduciary duty, negligent or fraudulent misrepresentation, and unfair or deceptive trade practices. When: Typical deadlines are three years for negligence/breach and fraud-related claims (fraud measured from discovery), and four years for UDTP.
  2. Early relief: If a closing is imminent, your attorney can seek a temporary restraining order/preliminary injunction to pause closing while the court considers the claims. Timeframes vary by county and court calendars.
  3. Final step: Seek damages (lost sale proceeds and related losses), treble damages for UDTP, fee forfeiture/disgorgement of the commission, and any appropriate equitable relief. If still executory, rescission may be available.

Exceptions & Pitfalls

  • If you knowingly consented after full disclosure, recovery can be limited; lack of clear, contemporaneous disclosures favors the seller.
  • Constructive fraud requires some personal benefit to the broker; if none exists, the claim may proceed as breach of fiduciary duty or misrepresentation.
  • Damages and causation matter: document withheld comparables, timing of deliveries, and how those omissions changed price or credits.
  • Do not file money-damages claims with the Clerk of Superior Court; the Clerk lacks jurisdiction over tort and contract damage claims—file in Superior Court.
  • Preserve evidence early: request your file, emails, texts, MLS history, offer logs, and inspection reports to avoid spoliation issues.

Conclusion

In North Carolina, if a broker accepts a low offer without disclosing higher comparables, the seller can sue in Superior Court for breach of fiduciary duty, misrepresentation, and unfair trade practices. Prove a fiduciary relationship, a breach (withheld material information or favoritism), and resulting loss. Remedies include damages (trebled for UDTP), disgorgement of commission, injunctions, and, when appropriate, rescission. Next step: consult counsel to file a civil complaint and evaluate three- and four-year filing deadlines.

Talk to a Real Estate Attorney

If you’re dealing with a broker who pushed a low offer without sharing key comparables or inspection information, 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.