Short Answer

In North Carolina, repairs and credits are negotiable items during the contract’s due diligence period, not automatic entitlements. Keep requests reasonable by limiting them to verified, material defects that affect safety, structure, systems, lender requirements, or clear contract obligations—backed by written reports and estimates. Put any agreement in a signed, written addendum before the due diligence deadline, and have the closing attorney reflect credits on the settlement statement.

Understanding the Problem

In North Carolina real estate sales, a seller wants to know how to manage buyer repair requests during due diligence so only legitimate, documented issues are addressed and unnecessary credits are avoided. The decision point is whether to agree to repairs or credits, and if so, on what terms and timeline before the due diligence period ends. One key fact: your own inspection disproved a claimed hole beneath the flooring.

Apply the Law

Under North Carolina law, a resale home is generally transferred “as is” unless the parties agree otherwise in the contract. The buyer may inspect during the due diligence period and request repairs or credits, but the seller is not required to agree except as promised in the contract or as needed to satisfy loan or closing conditions. “Material defects” are conditions that meaningfully affect the value, safety, structural integrity, or operation of the property. Repair or credit terms must be put in a written amendment signed by both parties before the due diligence deadline, and any agreed credit should appear on the Closing Disclosure/settlement statement prepared by the closing attorney. At closing, the deed is recorded with the Register of Deeds and funds are disbursed under North Carolina’s Good Funds Settlement Act.

Key Requirements

• Verified, material issue: Limit repairs/credits to documented, material defects (safety, structure, systems, code/lender-required), not cosmetic complaints.
• Written proof: Require inspection reports, photos, and at least one licensed contractor estimate describing scope, method, and cost.
• Clear scope and standards: If repairs are agreed, specify exactly what will be done, by whom (licensed where required), and by when; allow buyer reinspection.
• Contract timing: Get a signed repair/credit addendum before the due diligence deadline; after that, the buyer typically waives repair leverage unless the contract says otherwise.
• Settlement handling: Credits must be shown on the closing attorney’s settlement statement; no side deals or cash outside closing.

What the Statutes Say

• North Carolina Gen. Stat. § 47E-4 (Residential disclosure delivery) – Seller must provide the disclosure form; repairs still depend on contract terms.
• North Carolina Gen. Stat. § 45A-4 (Good Funds Settlement Act) – Closing attorney disburses funds only when collected and after recording.

Analysis

Apply the Rule to the Facts: Because your own inspection disproved the alleged hole, you have objective grounds to reject that request as not a verified, material defect. For the microwave and tub items you already agreed to, ensure they are captured in a written addendum with clear scope or a specific credit amount and that the closing attorney places the agreed credit on the Closing Disclosure. Ask for complete and prompt delivery of all buyer inspection materials so you can evaluate only substantiated, material issues before the due diligence deadline.

Process & Timing

1. Who files: Seller (through the real estate agent or closing attorney). Where: By written addendum to the purchase contract in North Carolina. What: A repair/credit addendum that itemizes each defect, the agreed repair method or credit amount, timing, and reinspection rights. When: Get it fully signed before the due diligence deadline stated in your contract.
2. Coordinate repairs, if any, with licensed contractors; provide invoices and completion receipts to the buyer; allow a brief reinspection window near closing. Timeframes vary by contractor availability and the parties’ agreement.
3. The closing attorney updates the Closing Disclosure to reflect credits, records the deed at the Register of Deeds, and disburses funds once collected under the Good Funds Settlement Act.

Exceptions & Pitfalls

• Loan- or insurance-required items: Some lenders or insurers require specific repairs; if not addressed, closing can be delayed or denied.
• “As-is” does not mean “say nothing”: You still must answer the residential disclosure form and avoid concealing known material facts.
• Vague terms: Avoid “repair as needed” or “to buyer’s satisfaction.” Specify scope, materials, contractor qualifications, and completion date.
• Uneven information flow: If reports are delayed or provided selectively, request full copies in writing and consider independent evaluations to verify or refute claimed defects.
• Side payments: Keep all credits on the settlement statement; do not exchange cash outside closing.

Talk to a Real Estate Attorney

If you’re dealing with contested repair requests or unclear credits during due diligence, 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.