Probate Q&A Series

What legal remedies can my neighbor pursue when a co-owner sells property without his agreement? — North Carolina

Short Answer

In North Carolina, a co-owner (tenant in common or joint owner without survivorship) can only sell their own undivided share—not yours—unless you authorized the sale. If a co-owner purports to sell the entire property, your neighbor can ask the court to confirm that the deed conveys only the seller’s share, set aside any forged or unauthorized signatures, and protect his possession and title. He can also file a partition case to split or sell the property fairly, seek an accounting for rents or damage, and record a lis pendens to alert buyers while the dispute is pending.

How North Carolina Law Applies

Each co-owner generally owns an undivided interest and may transfer only that interest without others’ consent. A deed signed by one co-owner that purports to convey 100% of the property typically gives the buyer only the seller’s percentage; it does not cut off another owner’s rights. If someone forged your neighbor’s name or used a power of attorney or LLC authority they did not have, the deed can be voided as to your neighbor’s interest. From there, your neighbor can stabilize the situation by filing a lis pendens, asking the court to declare his title intact, and, if co-ownership with the buyer is unworkable, pursuing a partition to divide the land or sell it and divide the proceeds.

Key Requirements

  • Ownership and capacity: North Carolina treats most co-ownership as tenancy in common. Without written authority, a co-owner cannot transfer another’s share. A forged signature makes the deed void as to the forged owner; even a good-faith purchaser cannot take that owner’s title through forgery.
  • Recording and priority: North Carolina’s recording law (the Connor Act) protects purchasers who properly record, but it does not validate a transfer of rights the seller never had. It can, however, affect priority among competing deeds and encumbrances.
  • Quiet title/declaratory relief: When a deed overreaches, the cleanest remedy is a court declaration that the deed conveyed only the seller’s undivided interest (or is void in part or whole if forged) and that your neighbor’s title remains unaffected.
  • Partition: If living with a new, unwanted co-owner is impractical, a partition case can divide the land in kind if feasible or order a sale and split the net proceeds. All co-owners and claimants should be joined, and disputed title or equitable issues can move the matter to superior court.
  • Possession, rents, and waste: A buyer who received only the seller’s share becomes a co-tenant with your neighbor. They cannot lawfully exclude him. If they oust him, collect third-party rents, or damage the property, he may seek an accounting, damages for waste, and restoration of possession.

Process & Timing

  1. Gather documents and act quickly: Obtain the recorded deed, prior deeds, any power of attorney or entity documents, and communications. Order a title search. If litigation is likely, record a notice of lis pendens to alert the world that title is in dispute.
  2. File for declaratory/quiet title relief: File a civil action asking the court to declare the deed valid only as to the seller’s undivided interest (or void for forgery/lack of authority). Include claims for ejectment or injunctive relief if the buyer tried to exclude your neighbor.
  3. Consider partition (Chapter 46A): File a partition special proceeding before the clerk to divide the land or sell it and split proceeds if co-ownership is unworkable. All co-owners and adverse claimants (including the buyer) should be named. The clerk may appoint commissioners to evaluate division in kind; if not feasible without substantial injury, the clerk can order a sale.
  4. Judicial sale procedures: If the clerk orders a sale, the process follows North Carolina’s judicial sale rules, including a 10-day upset-bid period after each high bid. Expect several weeks to months if there are upset bids.
  5. Transfer to superior court if disputed issues arise: If a party raises factual disputes or equitable defenses in the partition proceeding, the clerk will transfer those issues to a superior court judge for resolution, then the partition can proceed.
  6. Accounting and cleanup: Seek an accounting for rents and profits received by the selling co-owner or buyer, credit for taxes/insurance paid, and damages for waste if applicable. Final orders should address any liens and cost allocation.

What the Statutes Say

Exceptions & Pitfalls

  • Forged or unauthorized signatures: A forged deed is void as to the forged owner. Move promptly to challenge the deed and record a lis pendens to prevent further transfers while the case is pending.
  • Good-faith purchasers and recording: Recording gives priority among competing deeds, but it does not allow a buyer to take more than the seller owned. The buyer typically becomes a co-tenant with the non-selling owner.
  • Ouster and self-help: Do not resort to self-help if the buyer changes locks. Seek injunctive relief or ejectment and an accounting for rents/profits if excluded.
  • Missing parties: Failing to join all co-owners, lienholders, or adverse claimants can delay or undermine a partition or quiet-title result. Make sure all necessary parties are before the court.
  • Sale mechanics: If a partition sale is ordered, expect the judicial sale and upset-bid process to add time and cost. Procedures and deadlines can change; confirm current local practice before filing.

Helpful Hints

  • Order a full title search to confirm the chain of title, outstanding liens, and any powers of attorney or entity authority used for the sale.
  • Record a lis pendens when you file suit so future buyers and lenders see the dispute.
  • Document possession, rents collected, and expenses paid (taxes, insurance, repairs) to support an accounting between co-owners.
  • If a partition sale seems likely, start preparing valuation data and recent comparable sales; if a division in kind is feasible, gather maps/surveys early.
  • Avoid confrontations at the property; use court orders to address access, locks, and rent collection.

Talk to a Partition Action Attorney

If you’re dealing with a deed where a co-owner sold more than they owned—or you need to split or sell co-owned property—our firm has experienced attorneys who can help you understand your options and timelines. 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.