Buying On A Land Contract
G.S. 47H-2 — signed and recorded, a right to cancel, and 30 days to cure
In North Carolina, a contract for deed is signed and acknowledged by all parties and contains all their terms, and the seller delivers an exact copy with every required disclosure at the time the purchaser signs.
- The sales price, the down payment, the principal balance, each installment and its due date, and the interest rate.
- Any pending public order or matter of record adversely affecting the property that the seller actually knows of.
- Who is responsible for repairs, taxes, insurance and association dues.
- The purchaser's right to prepay without penalty, a completed residential property disclosure statement, and the purchaser's rights to cure a default.
A right to cancel. The purchaser may cancel until midnight of the third business day after the contract is signed, or delivered with the required contents, whichever is later. The seller then returns all payments and property not later than the tenth day after receiving the notice, less the fair rental value of the purchaser's use and any damage beyond normal wear and tear.
Recording. Within five business days after both have signed and acknowledged it, the seller records the contract or a memorandum of it with the register of deeds, and pays the fee unless the parties agree otherwise.
Thirty days to cure. A contract for deed cannot be forfeited unless the purchaser breached an express obligation that the contract makes grounds for forfeiture, received a notice of default and intent to forfeit, and failed to cure. The notice gives a cure date not less than 30 days after it is served, and a timely cure reinstates the contract.
No advance waivers. An instrument meant to extinguish the purchaser's equity of redemption, signed as a condition of the deal or before a default, is not effective. After a forfeiture, the equity ends by a recorded mutual termination or a court order.
A yearly statement. The seller provides a statement of account at least once every 12-month period, showing the amount paid, the amount owed, the payments remaining, and amounts paid for taxes and insurance.
| The assumption | What the law actually does |
|---|---|
| The assumptionA signed contract for deed is final the moment it is signed | What the law actually doesThe purchaser may cancel until midnight of the third business day |
| The assumptionThe seller can take the house back on the first missed payment | What the law actually doesNot without a notice giving at least 30 days to cure |
Mortgages, leases with an option to buy, and the details of a forfeiture or foreclosure case are not all on this page. Whether a particular agreement is a land contract under the statute, and what it allows, is a question for a licensed North Carolina attorney.
Sources for this section (4)
- G.S. 47H-2 — Minimum contents for contracts for deed; recordation
- G.S. 47H-3 — Conditions of forfeiture; right to cure
- G.S. 47H-4 — Notice of default and intent to forfeit
- G.S. 47H-5 — Periodic statements of account
Legal information, not legal advice. Verified as of September 2026. Applying it to a particular situation is the work of a licensed North Carolina attorney.