Real Estate Q&A Series

Can I enforce an offer to purchase if a co-owner fails to sign? – North Carolina

Short Answer

Usually not. In North Carolina, a contract to sell real estate generally must be in writing and signed by the party being forced to perform. If one record owner (or that owner’s valid power-of-attorney agent) never signs, a court typically cannot compel that owner to convey that owner’s interest, and the buyer cannot close on the whole property as contracted.

Understanding the Problem

In North Carolina real estate deals, the key question is whether a buyer can require a sale to go forward when the property has multiple owners and not all owners have signed the offer to purchase and contract. The actor is the buyer seeking to enforce the contract; the missing action is the signature of the non-signing co-owner or the co-owner’s attorney-in-fact under a power of attorney. The trigger is the need for all required signatures before closing so that the deed can transfer the full ownership interest promised in the contract.

Apply the Law

North Carolina treats most agreements to sell land as unenforceable unless the agreement (or a sufficient written memorandum) is in writing and signed by the party to be charged (the person against whom enforcement is sought) or someone that person legally authorized to sign. When a property has multiple record title holders, each owner must sign (or have a properly authorized agent sign) to create an enforceable obligation for that owner to convey an ownership interest. A buyer may still have an enforceable contract against the owners who signed, but that does not automatically produce a deed for 100% of the property if a co-owner never agreed in writing.

Key Requirements

  • Written contract for the land sale: The agreement to convey an interest in real estate must be in writing (an “offer to purchase and contract” usually satisfies this requirement).
  • Signature of each owner being enforced: To force a specific owner to sell, that owner (or an authorized agent) must have signed the contract.
  • Valid agency if signed by power of attorney: If an attorney-in-fact signs, the power of attorney must actually grant authority for the transaction, and recording requirements commonly arise when the agent executes instruments affecting real property.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The property is co-owned by three individuals, but only two co-owners have signed the offer to purchase. Under North Carolina’s writing-and-signature rule for land contracts, the non-signing co-owner typically cannot be forced to sell that co-owner’s interest unless that co-owner (or a properly authorized attorney-in-fact) signed. Because the third co-owner’s power-of-attorney holder has not executed the contract, the buyer generally cannot compel a closing for the entire property interest described in the contract.

Process & Timing

  1. Who files: The buyer (often through counsel). Where: North Carolina state court in the county where the property is located. What: A lawsuit seeking enforcement (often framed as specific performance) and/or other contract remedies; the filing depends on what the signed contract allows and what relief is realistic when a co-owner did not sign. When: Often before the contract’s closing date or any contractual “termination” or “notice” deadline stated in the offer to purchase.
  2. If the issue is authority rather than refusal, a practical next step is confirming that the power of attorney grants authority for the sale and can be recorded as required for instruments affecting real property; title work often drives the timetable because the deed and closing documents must match record title.
  3. If the non-signing owner will not sign (personally or through a valid agent), the likely end point is either (a) a termination and return/dispute of any deposit based on the contract terms, or (b) renegotiation to purchase only the interests of the signing owners (which would require a clear agreement and a closing structure that matches that reduced interest).

Exceptions & Pitfalls

  • “Party to be charged” limitation: A buyer may be able to enforce duties against the two signing owners, but that usually does not create a path to force the third owner to convey an interest that third owner never agreed to sell in writing.
  • Power of attorney gaps: Even when a power of attorney exists, the document may not authorize a real estate sale, may have conditions, may have expired/revoked, or may not satisfy recording practices needed for closing.
  • Title and closing mismatch: If the contract assumes delivery of full title but signatures support less than full title, lenders and title insurers often will not proceed without a fix (additional signature, amendment, or a different deal).
  • Notice and deposit mistakes: Parties sometimes wait too long to send the notices required by the offer to purchase (for example, demanding performance by a deadline or terminating properly), which can create avoidable disputes.
  • Recording a memorandum too early: A memorandum of contract may require notarized signatures of each record owner who is contracting to convey; recording a memorandum when an owner never signed can create confusion and may not accomplish the intended protection.

Conclusion

In North Carolina, an offer to purchase for real estate is generally enforceable only against the owners who signed (or whose authorized agent signed) a written contract. If a co-owner never signs, a court typically cannot force that co-owner to sell that co-owner’s interest, which can prevent closing on the full property. The next step is to address the contract deadline: send any required written notice under the offer to purchase and contract by the deadline stated in the agreement.

Talk to a Real Estate Attorney

If a property is co-owned and a missing signature (including a power-of-attorney signature) is blocking closing, an attorney can help evaluate enforceability, contract notice deadlines, and practical options to resolve the title and authority issues. 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.