Homebuyer Fairness and Protection Act.

2025-2026 Session Introduced by Woodson Bradley and 7 co-sponsors

Caps nonrefundable due diligence at 1% of purchase price; voids higher demands, makes sellers liable for buyers' costs, and allocates $10M to fund homebuyer education in NC.

Passed 1st Reading

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Purpose / Intent

The bill aims to protect homebuyers in residential real estate transactions by limiting the size of nonrefundable “due diligence” payments sellers may require and by funding homebuyer education. It seeks to reduce the financial risk to prospective purchasers and support broader consumer education to improve informed homebuying.

Key provisions

Adds a new Article (Article 4) to Chapter 22B of the North Carolina General Statutes establishing G.S. § 22B‑30.

Caps due diligence funds at 1% of the purchase price:

A seller may not require, as a condition of accepting an offer, payment of due diligence funds in excess of 1% of the offer’s purchase price.
Any contract provision requiring more than 1% is void and unenforceable.

Defines “due diligence funds”:

Nonrefundable funds paid directly to the seller upon acceptance of an offer in exchange for the buyer’s opportunity to further investigate the property and transaction during an agreed time period.

Remedies for buyers:

If a contract provision imposing an excessive due diligence requirement is voided, the seller is liable to the offeror (buyer) for court costs and reasonable attorneys’ fees in any action to recover those funds.

Appropriation for homebuyer education:

$10,000,000 (nonrecurring) is appropriated from the General Fund to the Office of State Budget and Management for FY 2025–2026 to be disbursed as a grant to the North Carolina Housing Coalition, Inc. to support homebuyer education services in the state.

Who would be affected

Prospective homebuyers: reduced exposure to large nonrefundable deposits during contract contingency periods.

Home sellers and listing brokers/agents: restrictions on structuring contracts that require high nonrefundable due diligence payments; potential increased exposure to fee awards if violating the cap.

Lenders, title companies, and closing agents: may need to adapt contract and escrow practices.

Nonprofit housing organizations: direct recipient of the $10M grant to expand education programs.

Fiscal and timeline details

Appropriation: $10 million (nonrecurring) for FY 2025–2026 to the North Carolina Housing Coalition.

Effective dates:

Section 1 (due diligence cap and related statutory changes) becomes effective October 1, 2025, and applies to offers accepted on or after that date.
Section 2 (appropriation) becomes effective July 1, 2025.

Enforcement: provisions that exceed the 1% cap are automatically void; sellers found to have required excessive due diligence funds can be ordered to pay buyers’ litigation costs and attorneys’ fees.

Potential impacts and considerations

Consumer protection: lowers financial barriers and risks for buyers conducting inspections/contingency investigations.

Market behavior: sellers may respond by adjusting list prices, relying more on earnest money, shortening due diligence periods, or using other contractual mechanisms.

Implementation: real estate practitioners will need to update standard contract forms and training; the grant to the NC Housing Coalition could expand outreach and counseling for buyers.

Bill