What happens if not all required sellers have signed the purchase agreement before closing? – North Carolina

Short Answer

In North Carolina, if all required sellers (or a properly authorized agent under a valid power of attorney) have not signed the purchase agreement and related closing documents, the closing usually cannot move forward as planned. The biggest practical risk is that the buyer, lender, and closing attorney may not be able to confirm that every owner who must convey the property has agreed to the deal and will sign a valid deed. The common result is a delay until the missing signature authority is in place or the parties amend the deal in writing.

Understanding the Problem

In a North Carolina real estate sale, what happens if a closing date is approaching but the purchase agreement has not been signed by every seller who is required to sign, including a seller who plans to sign through an agent using a power of attorney? The decision point is whether the transaction can proceed to closing when one required seller signature is still missing. This situation most often comes up when there are multiple owners, an estate or trust signing arrangement, or one owner is unavailable and must sign through an authorized agent.

Apply the Law

North Carolina closings depend on valid authority for each seller who must convey title. If a seller signs through an agent under a power of attorney, the signing must be done in a legally sufficient way, and the power of attorney typically must be recorded in the county Register of Deeds so the deed can be recorded cleanly. As a practical matter, when a required seller has not signed the contract (and cannot or will not sign the closing documents), the parties often cannot complete closing because the buyer cannot receive the promised deed from all required owners.

Key Requirements

All required sellers must consent: Every person or entity whose signature is required to sell the property must agree to the deal; otherwise, the seller side may not be able to deliver the deed the buyer bargained for.
Valid authority if signing by agent: If someone signs for a seller under a power of attorney, the agent must have authority at the time of signing and must sign in a legally acceptable form for the principal.
Recordable documents at closing: The deed and related instruments must be in recordable form for the county Register of Deeds, which often requires confirmation that any power of attorney used for the conveyance has been properly recorded and referenced.

What the Statutes Say

N.C. Gen. Stat. § 47-43.1 (Execution of instruments by attorney-in-fact) – Allows an agent under a power of attorney to sign conveyance instruments in a sufficient form on behalf of the principal.
N.C. Gen. Stat. § 47-28 (Recording powers of attorney affecting real property) – Requires recording a power of attorney (or certified copy) before a real property transfer signed by an agent, and sets rules for referencing the recording information.

Analysis

Apply the Rule to the Facts: The purchase agreement has been circulated, and some required parties have already signed, but the transaction is still waiting on a signature for a principal that will be executed through a power of attorney. Because the missing signature belongs to a required seller (or required signing authority), the closing attorney will usually treat the deal as not ready to close until that authority is confirmed and the agent can sign the deed and other seller documents in a form the lender and Register of Deeds will accept. If the power of attorney is the intended solution, the agent’s authority and the recording details for the power of attorney become key items to clear before closing can proceed.

Process & Timing

Who files: The seller (or the seller’s closing attorney) typically handles getting the power of attorney ready for use and recording it when required. Where: The office of the Register of Deeds in the North Carolina county where the property is located (and in some cases also where the principal is domiciled). What: The power of attorney or a certified copy for recording, and then the deed and closing documents signed by the agent with proper signature format. When: Ideally before closing and before recording the deed; timing can be tight when a closing date is already scheduled.
Once the closing attorney confirms (1) which sellers must sign, (2) that the power of attorney grants authority to sell and sign closing documents, and (3) that the power of attorney can be recorded and properly referenced, the attorney can coordinate with the real estate agent and the other side to set a closing date that matches document readiness.
After all required signatures are obtained and the closing package is complete, closing occurs and the deed is recorded. If the agent signs the deed, the recorded power of attorney information is typically included so the Register of Deeds can index the authority behind the signature.

Exceptions & Pitfalls

Not actually a “required” seller: Sometimes a person is expected to sign but is not on title or is not the correct authorized signer for an entity; confirming title and authority early prevents unnecessary delays.
Power of attorney scope problems: A power of attorney may not authorize a real estate sale, may be limited to a different property, may be expired, or may require extra formalities; these issues can stop closing until corrected.
Recording and reference issues: When an agent signs a deed, the transaction often needs a recorded power of attorney and accurate book/page/county reference. Missing or incorrect recording information can delay recording and create title problems that lenders and title insurers want to avoid.
Contract mismatch: If the purchase agreement is missing a seller signature, the parties may disagree about whether there is an enforceable deal or what terms apply; this is commonly handled by getting the missing signature or signing a written amendment/ratification before proceeding.

Conclusion

In North Carolina, a closing typically cannot proceed as planned if not all required sellers have signed the purchase agreement or otherwise provided valid signing authority, because the seller side may not be able to deliver a deed from every required owner. When a seller will sign through a power of attorney, the agent must have proper authority and the power of attorney generally must be recorded and referenced so the deed can be recorded. The most important next step is to obtain the missing POA signature authority and confirm recordation with the county Register of Deeds before the scheduled closing date.

Talk to a Real Estate Attorney

If a North Carolina closing is waiting on a missing seller signature or a power of attorney signature, experienced attorneys can help confirm who must sign, whether the power of attorney is usable for the sale, and what must be recorded so closing can move forward. 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.