Jan282026
Real Estate Q&A Series

How do I make sure a deed of trust and promissory note are properly signed and enforceable? – North Carolina

Short Answer

In North Carolina, a promissory note is usually enforceable when the borrower signs it and the terms are clear, but a deed of trust must also be properly executed and notarized so it can be recorded in the county Register of Deeds where the land sits. The most common enforceability problems come from signature authority issues, missing or defective notary acknowledgments, and mismatches between the note and the deed of trust. The safest approach is to treat the note as the debt contract and the deed of trust as the recorded lien, and make sure both documents line up and are signed correctly the first time.

Understanding the Problem

Under North Carolina real estate law, the key question is how to make a promissory note (the written promise to repay) and a deed of trust (the document that puts a lien on real property to secure repayment) valid and enforceable. The decision point is whether the signatures and notarization are done in a way that allows the deed of trust to be recorded and later relied on, and whether the promissory note is signed by the correct party in the correct capacity. This issue often comes up when a private loan is being made, when a refinance is being documented, or when a lender wants to be sure the paperwork will hold up if collection or foreclosure becomes necessary.

Apply the Law

In North Carolina, the promissory note is generally enforced like a contract for repayment, and the deed of trust is enforced as a recorded security instrument against the property. The deed of trust typically needs a proper notarial acknowledgment to be accepted for recording, and recording is handled by the Register of Deeds in the county where the property is located. If the deed of trust is not recordable (or is recorded with a defective acknowledgment), the lender can face avoidable disputes about the lien’s priority or even whether the lien is effective against third parties.

Key Requirements

  • Correct parties and signature authority: The borrower/owner must sign in the right legal name and capacity (individual, trustee, manager, attorney-in-fact, etc.), and any representative signing must actually have authority to bind that party.
  • Proper notarization for the deed of trust: The deed of trust should include a compliant notarial certificate (acknowledgment) completed by a notary, with the notary signing by hand in ink on paper records.
  • Consistency between the note and deed of trust: The note and deed of trust should match on the core deal terms (who owes, who is owed, principal amount, and what property secures the debt) so the deed of trust clearly secures the specific note.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the goal is to ensure the deed of trust and promissory note are signed in a way that will be enforceable if a dispute arises. That typically means confirming the borrower signs the promissory note, confirming the property owner signs the deed of trust (which may or may not be the same person), and ensuring the deed of trust includes a complete notary acknowledgment that the Register of Deeds will accept for recording. It also means checking that the note and deed of trust describe the same loan and do not conflict on key terms.

Process & Timing

  1. Who signs: The borrower signs the promissory note; the property owner/grantor signs the deed of trust; the trustee named in the deed of trust typically signs acceptance if required by the form being used. Where: The deed of trust is recorded with the Register of Deeds in the North Carolina county where the property is located. What: A deed of trust with a completed notarial acknowledgment (often using a form consistent with North Carolina acknowledgment requirements). When: Record the deed of trust promptly after signing to reduce lien-priority and notice disputes.
  2. Pre-recording review: Confirm names match across documents, confirm signing capacity (especially for entities, trusts, or powers of attorney), confirm the legal description and parcel references are attached and correct, and confirm the notary certificate is complete (county, date, signer’s name, notary signature and seal as applicable).
  3. After recording: Keep a complete “closing set” (signed note, recorded deed of trust, and any riders/assignments). If the loan is later paid off, use the proper satisfaction/release process so the lien is cleared of record (for more detail, see modified or released once the promissory note is paid off).

Exceptions & Pitfalls

  • Wrong signer or wrong capacity: A common problem is having an individual sign when title is held by a trust or an LLC, or having someone sign as an “agent” without valid written authority.
  • Defective notary acknowledgment: Missing venue (state/county), missing date, incorrect signer name, or a notary signing improperly can lead to rejection for recording or later challenges. North Carolina law also requires specific practices for a notary’s signature on paper records.
  • Note and deed of trust do not match: If the deed of trust references the wrong lender, wrong borrower, wrong amount, or an unclear description of the secured obligation, enforcement disputes become more likely.
  • Electronic signing issues: If any part of the transaction is electronic, the parties should confirm the platform and notarial process meet North Carolina requirements for electronic records and acknowledgments, and that the county Register of Deeds will accept the format being submitted.
  • Recording in the wrong place: A deed of trust should be recorded in the county where the land is located; recording elsewhere does not accomplish the main purpose of public notice for that property.

Conclusion

In North Carolina, a promissory note is typically enforceable when it is clearly written and signed by the borrower, while a deed of trust must also be properly executed and include a compliant notarial acknowledgment so it can be recorded with the Register of Deeds in the county where the property is located. The most important safeguards are correct signer identity and authority, a complete notary certificate, and consistent terms between the note and deed of trust. Next step: have counsel review the final signature blocks and notary acknowledgment before recording the deed of trust.

Talk to a Real Estate Attorney

If dealing with a deed of trust and promissory note and the goal is to avoid signature, notarization, or recording problems that can undermine enforceability, our firm has experienced attorneys who can help explain options and timelines. Call us today at [CONTACT NUMBER].

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: Pierce Law

Pierce Law Group is a North Carolina law firm focused on probate administration, real estate partition matters, and surplus funds claims across North Carolina. We know these situations often come with stress, family dynamics, and time-sensitive decisions—so we prioritize clear communication, steady guidance, and a practical plan from day one. Our goal is to make a complicated process feel manageable, while protecting what matters most to you.