Short Answer

In North Carolina, you can buy out a co-owner either by agreement (a voluntary buyout financed with your refinance) or through a partition proceeding before the Clerk of Superior Court. If the property is heirs’ property, state law can require an appraisal and give co-owners a statutory buyout window before any sale. If the home was inherited recently, extra estate rules may require the personal representative to join in a mortgage or sale to make it effective as to creditors.

Understanding the Problem

You want to know how, in North Carolina, you can refinance a jointly owned property and use those funds to buy out the other owner. This usually involves either a signed buyout agreement or a court‑supervised partition if you can’t agree. If the property came through an estate, timing since death can affect whether a personal representative must join the mortgage.

Apply the Law

North Carolina allows co-owners (usually tenants in common) to resolve disagreements by partition, a special proceeding filed with the Clerk of Superior Court where the property sits. When co-owners agree, they can do a voluntary buyout and close like a normal real estate transaction. When they do not, the partition process may involve valuation, commissioners, and—if it is “heirs’ property”—a statutory appraisal and buyout opportunity before any sale. If the property was inherited within the last two years, transactions by heirs (including mortgages) can require the personal representative to join so they bind the estate’s creditors.

Key Requirements

• Buyout agreement or court order: You need either a written buyout agreement with deed from the co-owner, or an order from a partition case that authorizes a buyout/transfer.
• Clear title for lender: Your refinance lender will require a deed into your name (or your agreed title structure) at closing and may require payoff of liens affecting the other owner’s share.
• Valuation: Agree on a value or obtain one. In partition or heirs’ property, the court may appoint an appraiser or commissioners to set value or equalize with an “owelty” payment secured by a lien.
• Proper forum and notice: If you cannot agree, file a partition special proceeding with the Clerk of Superior Court in the county where the land is located and serve all co-owners. Respondents generally have a short window to answer.
• Estate overlay (if inherited): Within two years after death and before the estate’s final account, an heir’s sale or mortgage generally must include the personal representative to be effective as to creditors.

What the Statutes Say

• North Carolina Chapter 46A (Partitions) — Governs partition proceedings, including procedures the Clerk follows and heirs’ property protections.
• G.S. 28A-17-12 (Heirs’ sales, leases, and mortgages) — Within two years of death, heirs’ transfers and mortgages can be ineffective as to creditors unless the personal representative joins.
• G.S. 1-394 (Special proceedings summons) — Sets special proceeding summons and short answer time for respondents.
• G.S. 7A-38.3B (Mediation before the Clerk) — Allows mediation in matters within the Clerk’s jurisdiction, often helpful in partition disputes.

Analysis

Apply the Rule to the Facts: With no specific facts, consider two common paths. If you and your co-owner agree on a price, you can sign a buyout agreement, your co-owner signs a deed to you, and you close a refinance that pays them their share. If you cannot agree, file a partition proceeding; the Clerk can order valuation and give a structured buyout path (especially for heirs’ property) before considering any sale.

Process & Timing

1. Who files: Any co-owner. Where: Clerk of Superior Court in the county where the property is located. What: Partition petition (special proceeding) and AOC-SP-100 Special Proceedings Summons; serve all co-owners under Rule 4. When: Respondents generally have 10 days from service to answer; the Clerk schedules next steps.
2. If heirs’ property applies, the court typically orders an appraisal and sets short deadlines for co-owners to elect and fund a buyout. If not heirs’ property, the Clerk may appoint commissioners to recommend division in kind, use an owelty payment to equalize shares, or, if necessary, recommend sale. Mediation can be ordered to reach a buyout.
3. Closing the refinance: For an agreed or court-approved buyout, your closing attorney records the deed into your name (and any owelty lien, if used), then records your new deed of trust. The court proceeding is dismissed or closed after compliance.

Exceptions & Pitfalls

• Heirs’ property rules: If the property is heirs’ property, the court may require an appraisal and offer co-owners a statutory buyout opportunity before any sale; missing these deadlines can forfeit buyout rights.
• Estate timing traps: Within two years after death and before the estate’s final account, a mortgage or sale by heirs may be ineffective as to creditors unless the personal representative joins.
• Title and parties: Failing to join every co-owner (including unknown or minor owners who may need a guardian ad litem) can delay or derail the process and your refinance.
• Lender requirements: Lenders usually will not fund until the deed is recorded and all liens or claims affecting the selling co-owner’s share are addressed.
• Litigation cloud: A recorded partition proceeding can cloud title; coordinate timing so the refinance funds the buyout and the court file is closed promptly.

Talk to a Partition Action Attorney

If you’re navigating a refinance to buy out a co-owner or facing a partition case, 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.