What happens if a co-owner doesn’t sign the purchase agreement by the deadline? – North Carolina

Short Answer

In North Carolina, a contract to sell real estate must be in writing and signed by the party to be charged. To sell the whole property, all title holders (or a properly authorized agent under a valid power of attorney) must sign by the acceptance deadline. If one co-owner does not sign by that deadline, there is usually no binding contract for the entire property and the buyer may let the offer expire or withdraw. Options include getting the missing signature through a valid power of attorney, extending the deadline in writing, or using partition if a co-owner refuses.

Understanding the Problem

The question is narrow: In North Carolina real estate, can the sale move forward if a co-owner does not sign the purchase agreement by the acceptance deadline? Here, three co-owners are selling; two have signed, and one still needs to sign before time runs out. The stakes are whether a binding contract exists for the entire property and how to secure agreed distribution of sale proceeds before closing.

Apply the Law

North Carolina’s Statute of Frauds requires a written, signed agreement for land sales. For a buyer to obtain full title, every owner (or an authorized agent) must sign the contract and, later, the deed. Deadlines in purchase contracts are typically “time is of the essence,” so missing an acceptance cutoff usually means no contract forms. A valid power of attorney may allow an agent to sign, but for the deed to record, the power of attorney must meet recording rules. If a co-owner refuses to sell, the court-based remedy is a partition proceeding before the Clerk of Superior Court, which generally takes longer than private transactions.

Key Requirements

• Written agreement signed by all sellers or their agents: A real estate contract must be in writing and signed by each owner (or a duly authorized attorney-in-fact) to bind that owner.
• Acceptance by the stated deadline: If the offer’s acceptance window or other time-sensitive terms expire before all signatures, the offer typically lapses unless extended in writing.
• Valid power of attorney for signatures: The attorney-in-fact must have real estate authority under the power of attorney; for the deed, the power of attorney must be recorded in the county where the property sits.
• Marketable title at closing: All owners (or the authorized agent) must sign the deed to convey full title; otherwise, the buyer receives only the signing owners’ interests.
• Distribution terms handled separately: Co-owners can sign a settlement agreement directing how sale proceeds are split and instruct the closing attorney to escrow or disburse accordingly.

What the Statutes Say

• North Carolina Gen. Stat. § 22-2 (Statute of Frauds) – Contracts to sell land must be in writing and signed by the party to be charged or a lawfully authorized agent.
• North Carolina Gen. Stat. § 32C-1-116 (Recording a power of attorney) – A power of attorney used to convey interests in real property should be recorded in the county where the property is located.
• North Carolina Gen. Stat. § 47-28 (Registration of powers of attorney) – Addresses registration of powers of attorney affecting real property with the register of deeds.

Analysis

Apply the Rule to the Facts: Because one co-owner has not signed by the acceptance deadline, there is likely no binding contract for the entire property yet. If that co-owner has granted a valid power of attorney with real property authority, the attorney-in-fact can sign before the deadline; the power of attorney should be recorded before or with the deed. If more time is needed, the sellers and buyer should execute a written addendum extending the acceptance period. The separate settlement agreement among co-owners can lock in how prior loan interest and net proceeds will be distributed and give the closing attorney clear escrow instructions.

Process & Timing

1. Who files: Sellers and buyer. Where: Private contract between the parties. What: Obtain the missing signature (by the co-owner or attorney-in-fact) or sign a written addendum extending the acceptance deadline. When: Before the current acceptance cutoff; deadlines in these contracts are typically time-sensitive.
2. Who files: Co-owners. Where: Private agreement with the closing attorney. What: A written settlement/distribution agreement plus clear escrow instructions for any disputed portion of proceeds. When: Before closing (roughly a month after execution in your scenario).
3. Who files: Any co-owner who wants to force a sale. Where: Clerk of Superior Court in the North Carolina county where the property is located. What: Partition special proceeding (petition, service on all co-owners; contested issues can be transferred to Superior Court). When: Typically takes months; outcome is a court-ordered partition in kind or by sale with proceeds divided.

Exceptions & Pitfalls

• Power of attorney gaps: If the POA lacks real estate authority, is not properly acknowledged, or is not recorded for the deed, the agent cannot convey marketable title.
• Capacity/consent issues: If any owner is a minor or legally incompetent, additional court approvals or guardianship steps may be required, delaying closing.
• Missed deadlines: Without a signed extension, the offer usually expires; do not assume an email or oral agreement preserves rights.
• Proceeds disputes: A closing attorney cannot disburse disputed funds without all-party instructions or a court order; use escrow agreements or, if necessary, interpleader in Superior Court.
• Partition timing: Partition is a formal court process before the Clerk of Superior Court and rarely aligns with short private closing timelines.

Conclusion

In North Carolina, selling the whole property requires a written purchase agreement signed by all co-owners or a duly authorized agent, and signatures must be obtained by the acceptance deadline. If a co-owner does not sign in time, the offer typically lapses. To keep the deal alive, get the missing signature through a valid power of attorney or execute a written extension now, and finalize a co-owner settlement agreement for proceeds. If a co-owner refuses to sell, the long-term remedy is a partition proceeding.

Talk to a Real Estate Attorney

If you’re facing a looming deadline because a co-owner hasn’t signed and you need a plan to keep your sale on track, 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.