Dec212025
Real Estate Q&A Series

Can an electronic signature be used when signing real estate contracts under a power of attorney? – North Carolina

Short Answer

Usually, yes. In North Carolina, electronic signatures generally have the same legal effect as ink signatures on contracts, including many real estate purchase contracts, so long as the parties agreed to transact electronically and the signature can be attributed to the signer. When an agent signs under a power of attorney, the bigger risk is not the e-signature itself, but whether the power of attorney actually gives clear authority for that specific real estate deal and whether any later closing documents must be notarized and recorded in a way the county Register of Deeds will accept.

Understanding the Problem

In North Carolina real estate transactions, a purchase contract often must be signed quickly to keep the deal moving. When the person who needs to sign (the principal) cannot sign directly, an agent may sign under a power of attorney. The decision point is whether an agent acting under a power of attorney can use an electronic signing platform to sign the purchase contract so the contract becomes binding and the transaction can proceed.

Apply the Law

North Carolina has adopted an electronic transactions statute that generally prevents a contract or signature from being treated as invalid only because it is electronic. In practice, that means a real estate purchase contract can often be signed through an electronic signing platform if the parties intended to conduct the transaction electronically and the signature process reliably shows who signed and when. Separate rules apply to documents that must be notarized or recorded (for example, deeds and many closing affidavits); North Carolina law also allows electronic signatures and electronic notarization to satisfy those requirements when the electronic notarial act is performed under the state’s notary rules and the document format is acceptable for recording.

Key Requirements

  • Valid authority under the power of attorney: The agent must have power to sign that type of real estate contract for the principal, and the power of attorney must be in effect when the agent signs.
  • Electronic-consent and attribution: The transaction must be conducted in a way that shows the parties intended to use electronic records and signatures and that the electronic signature is tied to the agent who signed.
  • Recordability for later documents: If the transaction proceeds to deed/closing, any document that must be notarized and recorded must meet North Carolina’s electronic notarization and electronic recording rules (or else be signed in wet ink and notarized traditionally).

What the Statutes Say

Analysis

Apply the Rule to the Facts: The transaction needs a signed purchase contract, the firm is believed to hold a power of attorney, and the contract arrived through an electronic signing platform. If the power of attorney is currently effective and gives the agent authority to sign real estate purchase contracts (not just handle banking or pay bills), an electronic signature typically can be used to execute the contract under North Carolina’s electronic signature rules. Separately, if the deal moves to closing, the power of attorney should be recorded in the proper county Register of Deeds if it will be used to sign transfer documents, and any notarized/recorded documents must follow North Carolina’s electronic notarization and recording requirements.

Process & Timing

  1. Who files: The agent, principal, or closing attorney (depending on the transaction). Where: The county Register of Deeds where the principal is domiciled or where the property lies in North Carolina. What: Record the power of attorney or a certified copy if the agent will execute a deed or other transfer instrument. When: Ideally before any deed or other real property transfer document is executed and recorded using that power of attorney.
  2. Contract execution: The agent signs the purchase contract in the agent’s capacity (commonly shown as the principal’s name “by” the agent’s name, “as attorney-in-fact,” or similar), using the electronic signing platform’s workflow so the signature is attributable to the agent.
  3. Closing execution: If closing documents require notarization, use either traditional in-person notarization with wet ink signatures or compliant electronic/remote electronic notarization under North Carolina notary rules, and confirm the receiving Register of Deeds will accept the electronic record for recording.

Exceptions & Pitfalls

  • Power of attorney scope problems: A power of attorney may be too narrow, may exclude gifts or self-dealing, or may not cover the specific act needed for the contract and closing. A lender or title insurer may also require specific authority language for real estate transactions.
  • Signing in the wrong name/capacity: If the agent signs only the agent’s name without clearly showing agency capacity, the other side may later dispute who is bound or demand re-execution.
  • Electronic signature platform does not match recording/notary rules: An e-signed purchase contract may be fine, but a deed (or affidavit) may be rejected for recording if the electronic notarization components or formatting are not compliant or not accepted locally.
  • Recording logistics for POA: Even though North Carolina law provides that failure to record as required does not necessarily make the transfer invalid, it can still trigger practical problems (closing delays, refusal to insure title, or an infraction under the statute).
  • Reliance and verification: Real estate professionals often need confirmation that the power of attorney is effective and adequate. Providing confirmation without reviewing the document (or without confirming no revocation or incapacity issues) can create avoidable disputes.

Conclusion

In North Carolina, an agent can usually use an electronic signature to sign a real estate purchase contract under a valid power of attorney, because electronic signatures generally carry the same legal effect as ink signatures. The critical requirements are that the power of attorney actually authorizes the agent to sign that contract and that the signing method reliably shows the agent signed in an agency capacity. If the power of attorney will be used for the deed or other transfer documents, the next step is to record the power of attorney (or a certified copy) with the proper Register of Deeds before recording the transfer.

Talk to a Real Estate Attorney

If a transaction depends on signing a purchase contract under a power of attorney (especially through an electronic signing platform), a real estate attorney can review the power of attorney, confirm the signing format, and coordinate recording and closing requirements. Call 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.

Category: Real Estate Q&A Series

Author: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.