[Offers and Negotiations – Contract Modifications] A week before closing, lightning struck the roof of the property being sold, doing about $5,000 in…

When parties to a valid, existing real estate contract mutually agree to change its terms, the legally proper method is to execute a written amendment. The Statute of Frauds requires that any modification to a contract for the sale of real property be in writing and signed by all parties to be enforceable. The amendment, once signed, becomes a legally binding part of the original purchase agreement, documenting the change in sales price while keeping all other terms of the contract intact.

A. Draft a lis pendens: A lis pendens is a public notice filed to indicate a pending lawsuit that affects the title to a property; it is not used for mutual contract modifications.

B. Execute a new purchase agreement: This is unnecessary and creates complexities by terminating the original agreement. An amendment correctly modifies the existing contract without replacing it.

D. Nothing; an oral agreement is sufficient: Under the Statute of Frauds, oral agreements for the sale or modification of real estate contracts are unenforceable.

1. North Carolina Real Estate Commission. (2023). North Carolina Real Estate Manual. Chapter 8, "Contracts and Closing," p. 8-21. The manual states, "Any changes to a contract must be in writing and signed by all parties... The standard form used to make changes to an existing contract is the Agreement to Amend Contract (Standard Form 4-T)."

2. UNC School of Government. (2012). Introduction to Real Property Transfer Law in North Carolina. In County Government in North Carolina, Chapter 11. This resource reinforces the Statute of Frauds (N.C.G.S. § 22-2), which mandates that all contracts to convey an interest in land, and any modifications thereof, must be in writing and signed by the party to be charged.

3. Galaty, F. W., Allaway, W. J., & Kyle, R. C. (2022). Modern Real Estate Practice in North Carolina (10th ed.). Chapter 11, "Sales Contracts and Practices." This standard university and pre-licensing textbook explains that amendments are used to change the provisions of an existing contract, distinguishing them from addenda which add provisions. It also confirms that such changes must be written and signed.