Can we proceed to closing while waiting on confirmation that the power of attorney is valid? – North Carolina

Short Answer

Usually, a North Carolina real estate closing should not proceed to final signing and recording until the closing attorney is comfortable that the power of attorney (POA) is valid and covers the specific act of signing the closing documents. A deed or deed of trust signed by an agent under an invalid or insufficient POA can create title and lender problems that may be difficult to fix after recording. In many transactions, the practical path is to pause, confirm the POA, and then close—or restructure the timing so funds and documents are not released until the POA issue is resolved.

Understanding the Problem

In a North Carolina real estate closing, can the parties move forward when a key signature must be made by an agent under a power of attorney, but the closing team is still waiting on confirmation that the power of attorney is valid? The decision point is whether the closing attorney can allow execution and recording of instruments that will transfer or encumber title when the authority for the agent’s signature has not been fully verified. This question commonly comes up when some parties have already signed and the remaining signature is for the principal through an agent, and the closing is otherwise ready to complete.

Apply the Law

North Carolina allows an agent (attorney-in-fact) to sign real estate instruments for a principal when the agent has authority under a valid power of attorney. In real estate, the practical and legal focus is (1) whether the agent has the right authority for the specific documents being signed, and (2) whether the transaction can be recorded cleanly with the register of deeds. North Carolina also has specific recording rules for powers of attorney used for real property transfers, and the deed’s acknowledgment typically references where the POA is recorded.

Key Requirements

Valid authority for the specific act: The power of attorney must actually authorize the agent to sign the deed, deed of trust, and other closing instruments involved in the transaction.
Proper execution style and notarization: The agent must sign in a legally acceptable manner for a POA signing, and the notarial certificate/acknowledgment must be completed so the document is recordable.
Recordability of the POA and reference in the recorded instrument: For real estate transfers signed by an agent under a POA governed by North Carolina’s POA laws, the POA (or a certified copy) is generally recorded, and the instrument of transfer typically references that recording information.

What the Statutes Say

N.C. Gen. Stat. § 47-28 (Recording powers of attorney affecting real property) – Sets rules on registering/recording a POA (or certified copy) used for transfers of real property and how instruments should reference the POA’s recording.
N.C. Gen. Stat. § 47-43 (Acknowledgment form for instrument executed by agent) – Provides a sufficient form of notarial acknowledgment for instruments signed by an agent under a POA, including referencing where the POA is recorded.
N.C. Gen. Stat. § 47-43.1 (Execution by agent under power of attorney) – Confirms acceptable ways for an agent to sign an instrument on the principal’s behalf.

Analysis

Apply the Rule to the Facts: Here, the closing needs a signature for the principal, to be executed through a power of attorney, and some required parties have already signed. Because the POA signature will support documents that affect title and recordation, the key legal risk is closing and recording documents before the closing attorney is satisfied that the agent has valid authority and that the POA and acknowledgments will be recordable in the proper register of deeds office. Speaking with the agent can help confirm identity, scope of authority, and signing logistics, but the closing attorney typically still needs the POA reviewed and handled in a recordable way.

Process & Timing

Who files: The closing attorney (or the party presenting documents for recording). Where: The North Carolina county Register of Deeds where the property is located (and sometimes another county, depending on the principal’s domicile and the property location). What: Record the power of attorney (or a certified copy) and prepare closing documents with an acknowledgment that fits POA execution and references the POA recording details (book/page/county) when needed. When: Ideally before the deed or deed of trust is recorded; in some situations, recordation can occur after the deed is recorded if the agent had authority when the deed was signed.
Verification step: The closing attorney reviews the POA for authority (does it cover selling/buying/borrowing, signing a deed/deed of trust, and related closing documents?), confirms that it is properly executed, and confirms any requirements for acceptance by the title insurer and lender.
Closing step: Once the POA is confirmed usable, the agent signs the closing documents in a compliant signature format, the notary completes an acknowledgment appropriate for an agent signing under POA, and the closing attorney records the deed and any security instruments and disburses funds according to closing instructions.

Exceptions & Pitfalls

POA scope problems: A general POA may still fail if it does not authorize the specific real estate act (for example, conveying real property or signing loan/security documents) or if it has limits/conditions that are not met.
Stale, revoked, or ineffective POA: A POA can be revoked, can be triggered only upon a condition, or can be ineffective due to execution defects. Those issues can surface late and can derail a closing if not addressed before signing.
Recordability/acknowledgment defects: Even when the deal is otherwise agreed, a deed or deed of trust can be rejected for recording if the acknowledgment does not work for an agent signing under POA or if the POA recording information is missing when required.
Closing before the POA is “cleared”: If funds are released and documents are recorded and the POA is later found invalid or insufficient, fixing the problem may require corrective documents, additional signatures, or even unwinding steps—often with lender/title insurer involvement.

Conclusion

In North Carolina, an agent can sign real estate closing documents under a power of attorney, but the closing attorney generally should not complete a closing (especially recording and disbursement) until the POA is confirmed valid and sufficient for the transaction and the documents are prepared in recordable form. A key step is ensuring the POA can be recorded and properly referenced for the register of deeds. Next step: have the closing attorney obtain and review the POA (and any certified copy) and arrange recording before releasing documents for recording and funds for disbursement.

Talk to a Real Estate Attorney

If a North Carolina closing is waiting on a power of attorney signature, a small documentation issue can turn into a major recording or lender problem. Our firm has experienced attorneys who can help review the POA, coordinate recordation requirements with the register of deeds, and keep the closing on track. 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.