Are there alternatives if a power of attorney holder refuses to execute the contract? – North Carolina

Short Answer

Yes. In North Carolina, a purchase cannot close if a required owner (or a properly authorized power of attorney agent for that owner) will not sign the contract and closing documents. Common alternatives include setting a firm response deadline and moving to termination based on the contract terms, negotiating a direct signature from the owner, or pursuing a court-driven remedy that can force a sale process between co-owners (such as a partition sale) when voluntary cooperation breaks down.

Understanding the Problem

When a property is co-owned in North Carolina and one co-owner is acting through a power of attorney, can the sale proceed if the power of attorney holder does not sign or will not respond? The practical problem is that a buyer typically needs a contract signed by all required owners (or their authorized agents) and a deed signed at closing. If one owner’s side does not execute, the transaction can stall even when the other co-owners are ready to sell.

Apply the Law

North Carolina real estate closings require that the seller side can deliver marketable title and properly executed closing documents. With co-ownership, each co-owner’s interest must be conveyed, which usually requires each co-owner’s signature on the deed or a valid signature by an authorized agent. If a co-owner uses a power of attorney, the agent’s authority must cover real estate transfers, and the power of attorney is commonly recorded with the county Register of Deeds (or recording details are referenced in the recorded deed). If the agent refuses to act, a buyer may need to rely on contract remedies, renegotiate for different signatories, or consider court processes that resolve co-owner deadlock (most often initiated by a co-owner, not the buyer).

Key Requirements

All required ownership interests must be conveyed: With multiple owners, the closing must transfer each owner’s interest (or the buyer receives only what the signing owners can convey, which is usually not acceptable in a standard purchase).
Valid authority for the agent: A power of attorney agent must have authority to sign real estate documents for the principal, and lenders/title companies typically require the power of attorney to be handled and recorded properly for a real estate transfer.
A workable enforcement or exit path: If a necessary signature will not happen, the remaining practical routes are (1) enforce the contract if it is enforceable against the right parties and conditions are met, (2) terminate under contract timelines/contingencies, or (3) use a co-owner remedy (like partition) to force a sale process.

What the Statutes Say

N.C. Gen. Stat. § 47-28 (Recording powers of attorney for real property transfers) – Addresses recording requirements and record-reference mechanics for real estate transfers signed by an agent under a power of attorney.
N.C. Gen. Stat. § 46A-76 (Partition sale procedure) – Describes procedures and notice requirements when a court orders a partition sale of real property between co-owners.

Analysis

Apply the Rule to the Facts: The property is co-owned by three individuals, and only two have signed the offer to purchase. The third owner is represented by a power of attorney agent who has not responded, so the seller side cannot currently deliver signatures that convey 100% of the ownership interest. Without that third signature (either from the owner directly or from a properly authorized agent), closing typically cannot deliver the full title the buyer contracted to purchase.

Process & Timing

Who pushes the decision: The buyer (through the buyer’s agent/attorney) usually presses for action. Where: Primarily in the transaction documents; if litigation becomes necessary, it is typically in the North Carolina Superior Court in the county where the property is located. What: A written demand for execution and proof of authority (including a copy of the power of attorney and recording information if applicable) and a clear deadline keyed to the contract closing date. When: As early as possible, and before any contract deadlines for due diligence, financing, or closing.
If the POA holder will not sign: The next realistic step is usually one of these routes: (a) negotiate for the principal (the actual co-owner) to sign directly, including arranging notarization and any required spouse/other signatures that might apply; (b) negotiate a short extension with a firm “drop-dead” signature date; or (c) terminate under the contract’s deadlines if the seller side cannot perform by closing.
If co-owners want to force a sale despite a holdout: A co-owner (not the buyer) can evaluate a partition action, which can lead to a court-ordered sale process with a commissioner and required notices. That route often takes longer than a standard closing and may not match a buyer’s desired timeline, but it can break co-owner deadlock.

Exceptions & Pitfalls

The “POA problem” may really be an “authority problem”: Sometimes the agent is silent because the power of attorney does not grant authority to sell real estate, has limits, is not effective yet, or has been revoked. Title companies often require a review of the document and may require recordation details consistent with North Carolina practice.
A contract signed by fewer than all owners may be unenforceable to force a full conveyance: Even if two co-owners signed, the buyer may not be able to compel transfer of the non-signing owner’s interest. This often turns the issue into a contract exit/return of deposits question under the specific contract terms.
Partition is not a fast “buyer fix”: Partition is generally a co-owner remedy. It can lead to a sale process, but it involves court steps, notice, and time. A buyer should not assume a stalled deal will convert into a quick court-ordered closing.
Recording and closing logistics: When an agent signs a deed, the power of attorney is commonly recorded and referenced in the recorded instrument. If those details are missing or wrong, recording issues can delay closing even if everyone agrees at the last minute.

Conclusion

In North Carolina, a buyer usually cannot close a purchase of co-owned property unless all co-owners (or properly authorized agents under valid powers of attorney) execute the contract and closing documents needed to convey the full ownership interest. If a power of attorney holder refuses to sign or will not respond, practical alternatives include demanding execution by a firm date, negotiating for the actual owner to sign directly, or ending the deal under the contract. The key next step is to send a written demand tied to the contract’s closing deadline.

Talk to a Real Estate Attorney

If a co-owner or power of attorney holder is holding up a North Carolina closing, a real estate attorney can help evaluate whether the seller side has authority to sign, what the contract allows, and what options exist if performance does not happen on time. 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.