Final answer:
If the sellers fail to replace the HVAC system as agreed before closing, they may be in breach of contract, allowing either party to immediately terminate the contract with written notice and without liability, or adjust the contract start date to when possession is feasible.
Step-by-step explanation:
Josie's situation falls under real estate law, specifically pertaining to the Standard Offer to Purchase and Contract form 2-T used in North Carolina. When the sellers have agreed in writing to replace the HVAC system before closing but failed to do so, they are likely in breach of the contract.
According to the clause regarding possession, if the owner cannot deliver possession on the agreed date due to any reason, including the failure to complete agreed repairs or replacements, the buyer (resident) or the seller (owner) can immediately cancel and terminate the agreement with written notice.
In such a case, neither party has liability to the other, and any payments made under the agreement must be refunded in full. If neither party opts to cancel the contract, the start of the agreement will be adjusted to the date when actual possession is possible.