What Does “Signed Under Seal” Mean in North Carolina?
When it comes to legal documents, some seemingly archaic terms can carry significant legal implications. One such term is “SEAL.” In North Carolina, the presence of this word on a legal document can extend the statute of limitations for filing a lawsuit related to that document from the standard three years to a full ten years. This blog will unpack the meaning of “signed under seal,” its historical roots, and how it is recognized under North Carolina law.
Understanding N.C.G.S. § 1-47
North Carolina General Statute § 1-47 sets a 10-year statute of limitations for certain legal actions, including those involving sealed instruments or documents conveying interests in real property. Here’s a simplified breakdown:
Sealed Instruments:
- A sealed instrument refers to a document signed by a party and marked with a seal or the word “SEAL” adjacent to the signature.
- If a contract or legal document is executed under seal, parties have 10 years to bring legal action regarding disputes related to the document.
Key Cases and Interpretations:
- Courts have established that if a document clearly indicates it is signed under seal (e.g., with the word “SEAL” near the signature), it will be considered sealed as a matter of law.
- North Carolina courts, including in Davis v. Woodlake Partners, LLC (2013), have upheld this extended statute of limitations for sealed instruments.
Practical Implications:
- This 10-year limit applies regardless of whether the signer intended the document to have this extended enforceability. The presence of the word “SEAL” alone is sufficient.
History of the Seal
The concept of a seal dates back to English law, where it was used to verify the identity and assent of the party signing a document. Historically:
- Seals were made by pressing a unique symbol, such as a family crest, into wax.
- Over time, the requirement for physical seals was relaxed, leading to:
- Embossed paper seals.
- Hand-drawn symbols.
- Printed words like “SEAL” or “L.S.” (locus sigilli, meaning “place of the seal”).
The seal signified a document’s authenticity and legal significance. As a result, sealed documents were given greater weight in court, including longer enforceability periods.
Seals in Modern North Carolina Law
While the use of wax seals has faded, North Carolina law continues to recognize the legal impact of the word “SEAL” on documents. The statute of limitations for actions related to a sealed instrument is governed by N.C.G.S. § 1-47(2). Here’s what it means:
When is a Document Considered “Under Seal”?
- If the word “SEAL” is printed, typed, or written near the signature of the parties.
- Courts assume the intent to create a sealed instrument if the seal is apparent on the face of the document.
Impact of Sealed Instruments:
- Extends the statute of limitations to 10 years.
- Limits defenses that parties can raise, such as claiming they did not intend for the document to be sealed (oral testimony about intent is not allowed).
Avoiding Potential Pitfalls
Signing a contract “under seal” can have significant consequences, particularly if you are unaware of the implications. To avoid issues:
Understand the Language:
- Look for the word “SEAL” near the signature line before signing a document.
- Recognize that including this term extends the enforceability period to 10 years in North Carolina.
Consult an Attorney:
- If you’re unsure about the legal consequences of signing a document under seal, seek legal advice before signing.
- An attorney can help you understand whether the extended enforceability aligns with your intentions.
Notaries and Sealed Instruments:
- Notaries should remain neutral and avoid interpreting the meaning of “SEAL” for signers. They may explain general concepts but should direct signers to consult an attorney for specific legal advice.
Key Points Related to “Seal” in Notarization
Sealed Instrument:
- A sealed instrument is a legal document that includes a signature and an indication of a “seal.” Traditionally, this might have been a physical wax or embossed seal, but in modern North Carolina law, the word “SEAL” or similar wording near a signature can suffice as a “seal.”
- Notaries often encounter sealed instruments in real estate transactions or contracts where a principal’s signature is notarized. The seal represents a formal acknowledgment of the document’s legal weight and intent.
The 10-Year Rule:
- If an instrument (like a deed or contract) is “sealed,” the parties involved have up to 10 years to bring legal action based on that document.
- For example, if a person defaults on a real estate transaction involving a sealed document, the other party can sue within 10 years of the default.
Counterclaims in Legal Disputes:
- If someone sues based on a sealed document, the defendant can file a counterclaim related to the same issue, even if the counterclaim would normally fall under a shorter time limit. This helps ensure fairness in resolving disputes tied to sealed agreements.
Notary’s Role with Sealed Instruments:
- As a notary, your job is to verify the principal signer’s identity, witness their signature, and, if required, apply your notary seal to complete the notarization. Your notary seal does not create the “sealed instrument” but authenticates the notarization process.
- The principal’s acknowledgment before you ensures their agreement to the document’s terms, which often include a seal or statement indicating it’s a formal, binding agreement.
Practical Implications for Notaries
- Be aware that when notarizing documents labeled as “sealed,” the document might carry a longer statute of limitations for legal actions (10 years).
- Ensure all notarization elements are correct (e.g., clear principal signature, proper seal placement, and completed certificate) to support the enforceability of the sealed instrument.
- Educate signers, if asked, that the “seal” mentioned in their document is a legal formality that impacts how long it can be enforced, not just a decorative addition.
Conclusion
The term “SEAL” may seem like a relic of the past, but its presence on a document in North Carolina carries substantial legal weight. It can extend the enforceability of a contract or instrument from three to ten years, with significant implications for all parties involved. Understanding the historical and legal significance of this term helps protect you from unintended consequences and ensures you make informed decisions when signing legal documents. When in doubt, always consult with a qualified attorney for guidance.
To improve, gain more practice, and or build up confidence in notarizing documents joined one or all of our notary continuing education training for North Carolina notaries throughout the year. Get more information at, www.ncNotaryTraining.education.
Legal Disclaimer: NC Notary Signing Services strives to provide precise and current information through our newsletters. However, the contents are intended for informational purposes only and should not be construed as legal advice. We do not present ourselves as attorneys and cannot assure the information's accuracy, completeness, or reliability. It is recommended to consult a licensed attorney for legal matters. NC Notary Signing Services, its employees, or contractors will not be liable for any claims, penalties, losses, damages, or expenses arising from or related to the use of information in our newsletters. Notaries should seek guidance from their state’s notary authorities or legal advisors for legal queries. If any part of this disclaimer is found to be invalid by a competent authority, the remaining sections will continue to be effective.
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