What happens if the attorney-in-fact does not respond in time and the contract deadline is approaching? – North Carolina

Short Answer

In North Carolina, if the attorney-in-fact (agent under a power of attorney) does not sign or respond before a real estate contract deadline, the transaction can stall and the parties may lose contractual rights tied to that deadline. The most common practical result is that the other side refuses to extend time, treats the deadline as missed, and moves on or enforces whatever the contract says happens after a missed deadline. The fastest fix is usually written confirmation of authority plus a written extension (or amendment) signed by the parties before the deadline expires.

Understanding the Problem

In a North Carolina real estate transaction, can an attorney-in-fact sign a purchase contract in time when the principal’s signature is required and the contract deadline is close? What happens if the attorney-in-fact does not respond to an electronically delivered contract and no signed documents are returned before the deadline? The decision point is whether the contract deadline passes without a valid signature or without required action by the person who has authority to sign for the principal.

Apply the Law

North Carolina generally allows an attorney-in-fact to sign real estate documents for the principal when the power of attorney grants that authority and has not been revoked or terminated. In practice, the other party (and the closing attorney) often needs prompt proof that the agent still has authority and that the signature will be binding. If the agent does not act by the contract’s deadline, the legal consequences usually come from the contract terms (and any statutory cancellation rights that apply), not from a general “power of attorney response” deadline.

Key Requirements

• Valid authority to sign: The power of attorney must actually authorize the agent to sign the purchase contract and related closing documents for the principal.
• Power of attorney still in effect: The agent’s authority must not have ended (for example, by revocation or other termination), and the transaction must be handled in good faith.
• Contract compliance before the deadline: The signature and any required notices or addenda must be delivered in the manner and by the time the contract requires (often including how electronic signatures and delivery count).

What the Statutes Say

• N.C. Gen. Stat. § 143B-1271 (Affidavit of agent re: no knowledge of termination) – Allows an agent’s affidavit stating no actual knowledge/notice of revocation or termination to serve as conclusive proof (absent fraud), and it can be recorded if the underlying instrument is recordable.
• N.C. Gen. Stat. § 47E-5 (Timing of residential disclosures; cancellation) – Creates a time-sensitive right for a purchaser to cancel in certain disclosure-timing situations, which can matter when deadlines are tight and documents are delayed.

Analysis

Apply the Rule to the Facts: The transaction cannot move forward without a valid signature for the principal, and the request is for execution under a power of attorney through an electronic signing platform. If the firm (or another attorney-in-fact) has authority but does not respond before the contract deadline, the contract may not become binding (if acceptance is not completed) or a time-sensitive obligation may be missed (if a binding contract already exists). Either way, the practical risk is that the other side will not extend the deadline and will treat the deal as delayed or failed under the contract’s terms.

Process & Timing

1. Who files: No “filing” is usually required to sign a purchase contract, but the agent must be the person authorized to sign. Where: The signature is delivered through the electronic signing platform and/or to the parties’ real estate agents and closing attorney in North Carolina. What: A signed contract (and often a copy of the power of attorney, plus an agent affidavit if authority/termination is a concern). When: Before the contract’s acceptance deadline or any other stated deadline.
2. Confirm authority quickly: The parties typically confirm that the power of attorney covers the transaction and that the agent can sign the specific documents. If the other side needs extra comfort that the power of attorney has not been revoked or terminated, an agent affidavit may be requested to reduce the risk of later disputes.
3. Extend the deadline in writing if needed: If the signature cannot be delivered on time, the usual solution is a written extension or amendment signed by the parties before the deadline expires. Without an extension, the other side may treat the deadline as missed and proceed according to the contract.

Exceptions & Pitfalls

• Authority mismatch: A power of attorney can be too narrow (or outdated) to cover signing a purchase contract or conveyance-related documents, which can lead to rejection by the other side or the closing attorney.
• Termination concerns: If there is reason to suspect the power of attorney was revoked or otherwise ended, the transaction can pause while the parties verify authority. An agent affidavit can help address “no knowledge of termination” issues in situations where recordable instruments are involved.
• Deadline assumptions: Parties often assume an electronic signing request “stops the clock.” It usually does not. If the contract requires receipt by a certain time, sending the request is not the same as delivering a signed acceptance.
• Statutory cancellation windows: In some residential transactions, delayed delivery of required disclosures can create a short cancellation window for the purchaser, which can change leverage and timing when documents are late.
• Communication gaps: A third-party professional may request confirmation and execution, but ethical and practical constraints can limit what a law firm can confirm without verifying representation, authority, and instructions from the principal or authorized agent.

Conclusion

In North Carolina, if an attorney-in-fact does not sign or respond before a real estate contract deadline, the parties can lose the benefit of that deadline and the other side may treat the transaction as expired, delayed, or in breach depending on the contract terms. The key requirement is a valid, still-effective power of attorney that authorizes the agent to sign, plus timely delivery of the signed contract. The most important next step is to get a written extension signed by the parties before the deadline passes.

Talk to a Real Estate Attorney

If you’re dealing with a pending contract deadline and a signature must be provided under a power of attorney, our firm has experienced attorneys who can help clarify authority, required documents, and timing. 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.