Reply #4: This development does present a problem [View All]

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Since there is a contract for sale, the house is as good as sold. Title is equitably converted to the buyers; in fact, if the house were destroyed by some act of God at this time, the buyers bear the loss. Thus, the buyers are misguided and foolish if they think they can just back out without facing recourse (in this case, either specific performance to force the sale or the incidental damages associated with setting up the sale).

Now you say that the buyers intend to close, but postpone the closing date. Unfortunately, there is little that can be done about the buyer's intentions to delay the closing date, unless and until the delay becomes "unreasonable under the circumstances." Absent a "time is of the essence clause" in a contract for sale (and I doubt your parents' lawyer bothered to deviate from a standard form agreement to include it), closing dates are not fixed in stone. The parties are allowed a reasonable time after the closing date to arrange for the financing, title transfer, etc. I know it seems counterintuitive that a buyer who waits two weeks after the closing date to close the sale is not in breach, but it is a reflection of the realities of the real estate market in that these delays happen all the time.

"Unreasonableness" has vague and uncertain contours, but if a couple months pass by, it is probably time for your parents to seek an attorney to litigate the matter. North Carolina does allow fee-shifting in cases involving real property disputes, so they shouldn't have too much trouble getting an attorney.

DISCLAIMER: This is not legal advice and should not be treated as such. There is no substitute for the individual consultation with a lawyer who can undertake a fuller understanding of the facts and the law as it applies to the facts.