Probate Q&A Series

Can I challenge a power of attorney document and property sale if the grantor was incapacitated and under undue influence? – North Carolina

Short Answer

Yes. In North Carolina, you can ask the Clerk of Superior Court to review a power of attorney and transactions made under it if the principal lacked capacity or the document was procured by undue influence. The court can suspend or remove the agent, compel an accounting, and void or unwind an agent’s act, including a sale, or impose a constructive trust on the proceeds. If a later-discovered issue also involves an outdated will, a separate will-caveat process may apply.

Understanding the Problem

You want to know whether, under North Carolina law, you can challenge a power of attorney (POA) and a property sale made under it when the signer was incapacitated and pressured. Here, one key fact is that a family member was allegedly coerced into signing a new POA and selling property. This article addresses whether and how you can contest the POA and the sale.

Apply the Law

North Carolina’s Uniform Power of Attorney Act lets “interested persons” ask the Clerk of Superior Court to review an agent’s conduct, require an accounting, and suspend or remove the agent. If the principal lacked capacity when the POA was signed, or if undue influence or fraud procured the POA or a later transaction, the court can void the agent’s act, trace sale proceeds, and impose remedies to make the principal whole. Disputes seeking money damages or to set aside a deed typically proceed in Superior Court. If a separate inheritance issue exists because an older will was probated and a later will is being withheld, the exclusive way to contest the will’s validity is a caveat filed with the Clerk.

Key Requirements

  • Standing: You qualify if you are an “interested person,” which includes those with a demonstrable interest in the principal’s property or welfare.
  • Grounds: Lack of capacity, undue influence, duress, fraud, or an agent acting outside the POA’s authority can justify court relief.
  • Forum: Petitions to compel an accounting, suspend/remove an agent, or determine authority begin with the Clerk of Superior Court; suits for damages or to set aside deeds are filed in Superior Court.
  • Remedies: Accounting; suspension/removal; injunctions; voiding an agent’s act; liens/constructive trusts; tracing and recovery of proceeds.
  • Timing: Act promptly; damages claims have statutes of limitations, and third-party buyer protections may limit undoing a sale.

What the Statutes Say

Analysis

Apply the Rule to the Facts: If your uncle lacked capacity or was pressured to sign the new POA, you have standing to ask the Clerk to suspend or remove the agent and compel a full accounting. If the agent used that POA to sell the uncle’s land, the court can void the agent’s act or, if the buyer is protected, impose a constructive trust on sale proceeds and order repayment. Because family members won’t produce the updated will, you can seek an order to compel production; if an older will was probated instead of the most recent one, a caveat is the proper way to contest that probate.

Process & Timing

  1. Who files: Any interested person. Where: Clerk of Superior Court in the North Carolina county where the principal resides, an agent resides, or the property sits. What: Petition under Chapter 32C to compel an accounting, suspend/remove the agent, and determine/limit authority; include AOC-E-102 Estate Proceeding Summons for service. When: File as soon as possible; damages claims are time-limited and sale proceeds can dissipate.
  2. If the relief sought includes setting aside a deed or monetary damages, file a civil action in Superior Court and consider recording a notice of lis pendens. The Clerk matter and civil action can proceed in parallel, and counties differ in scheduling; initial hearings may occur within weeks to a few months.
  3. Final orders may include suspension/removal of the agent, an accounting, injunctions, voiding the agent’s act, or a constructive trust over proceeds. If a will dispute remains, file a caveat with the Clerk; the clerk will transfer it to Superior Court for jury trial.

Exceptions & Pitfalls

  • Good-faith buyer protection: If the purchaser relied in good faith on the POA, undoing the deed may be limited; you may instead recover proceeds or impose a constructive trust.
  • Delay risk: Waiting can let proceeds vanish and may run out limitations periods for damages claims.
  • Service and parties: Use Rule 4 service and include necessary parties (agent, buyer, any transferees) to avoid dismissal or incomplete relief.
  • Scope of forums: The Clerk can order accountings and suspend/remove an agent; claims for monetary damages or to set aside deeds belong in Superior Court.

Conclusion

In North Carolina, you can challenge a POA and a sale made under it when the principal lacked capacity or was under undue influence. You have standing to seek an accounting and to suspend or remove the agent, and courts can void the agent’s act or capture the proceeds. If a will issue also exists, the exclusive route is a caveat. Next step: file a Chapter 32C petition with the Clerk of Superior Court to compel an accounting and freeze further actions by the agent.

Talk to a Probate Attorney

If you’re dealing with a questionable power of attorney and a rushed property sale, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at 919-341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.