Short Answer

In North Carolina, co-owners can settle a property dispute privately by negotiating and signing a written buyout or settlement agreement, setting a clear price, credits for expenses, and solutions for any title or boundary issues, then closing with deed(s) and recording them. Mediation can help reach terms without filing a partition case. Plan for repairs, taxes, and encroachments in the agreement. If a party is a minor, incompetent, or an estate/trust, court approval or a guardian’s involvement may be required.

Understanding the Problem

You’re a North Carolina co-owner trying to avoid a partition lawsuit. One owner wants to keep the property; the other prefers a buyout with compensation. You’ve traded offers, but the building needs maintenance and there may be a neighbor’s encroachment. You want practical, out-of-court steps to reach a binding deal without filing with the Clerk of Superior Court.

Apply the Law

North Carolina law allows co-owners to resolve disputes by private contract. A partition case is a special proceeding before the Clerk of Superior Court, but you don’t have to file one if you can agree on terms. Private settlements commonly include a buyout price tied to an appraisal or agreed valuation, an accounting for taxes/insurance/repairs and any rents or use, and recorded documents (deeds, easements) to clean up title or boundary issues. If talks stall, a partition action may be filed; clerks can order mediation in matters within their jurisdiction, and mediated agreements must be in writing and signed to be enforceable.

Key Requirements

• Written agreement signed by all co-owners: Spell out price, payment terms, possession/turnover date, and mutual releases; include confidentiality if desired.
• Valuation method: Use a neutral appraisal or set a formula to fix fair value, then apply agreed credits/debits.
• Accounting and credits: Address taxes, insurance, necessary repairs, utilities, HOA dues, rents/occupancy, and any waste or damage, with clear credits to each side.
• Title and boundary solutions: Resolve liens, mortgages (lender consent), and encroachments with recorded easements or boundary line agreements; require neighbor signatures where needed.
• Closing documents and security: Use a deed (and deed of trust if payments are over time), easements, affidavits, and a settlement statement; record with the Register of Deeds.
• Capacity/authority: If a party is a minor, incompetent, or an estate/trust, involve the proper fiduciary and obtain any required court approvals.

What the Statutes Say

• North Carolina Gen. Stat. Chapter 46A (Partition Proceedings) – Governs partition in kind and by sale, commissioners, and related procedures if a case is filed.
• North Carolina Gen. Stat. § 7A-38.3B (Mediation in clerk proceedings) – Authorizes clerks to order mediation to facilitate settlement in matters within their jurisdiction.
• North Carolina Gen. Stat. Chapter 39 (Conveyances) – Sets general requirements for written, acknowledged, and recorded instruments (like deeds and easements) affecting title.

Analysis

Apply the Rule to the Facts: Because one owner wants to keep the North Carolina property and the other wants to cash out, a private buyout is the cleanest solution. Start with an appraisal and then credit the non-occupying owner for their share of taxes and necessary repairs, and debit for any exclusive use or unpaid expenses. Address the suspected encroachment by negotiating an encroachment easement or boundary agreement with the neighbor, then exchange funds at a closing and record the deed and any easement.

Process & Timing

1. Who files: No court filing required. Where: Negotiate privately; record in the County Register of Deeds. What: Settlement Agreement, appraisal report, deed (warranty or special warranty), deed of trust/note if payments over time, encroachment easement or boundary line agreement, lien waivers, and mutual releases. When: Typical private timelines run a few weeks to a couple of months depending on appraisal and title work.
2. Conduct a title search, resolve liens, obtain lender consent if needed, and finalize the written agreement. If negotiations stall, consider a half- or full-day mediation; ensure any mediated agreement is reduced to writing and signed before leaving the session.
3. Close the buyout: exchange funds in escrow, deliver executed deed(s) and easement(s), and record with the Register of Deeds. Update insurance, taxes, and utilities; each side signs a release of claims consistent with the settlement.

Exceptions & Pitfalls

• Minors, incompetents, or estate/trust owners may require a guardian, fiduciary authority, and court approval—don’t assume a private contract alone will bind them.
• Mortgages and due-on-sale clauses: get lender consent or refinance at closing if the keeping owner is taking full title.
• Unresolved liens (tax, HOA, judgments) can derail closing; order a title search early and satisfy or escrow for them.
• Encroachments need neighbor signatures; you can’t bind a third party without their agreement—use a recorded easement or boundary line agreement.
• Payment over time without security is risky; secure the obligation with a deed of trust, define default remedies, and consider escrowed releases.
• Vague accounting for repairs, taxes, or rents causes disputes; list each credit/debit, date range, and supporting documents in the agreement or a closing statement.

Talk to a Partition Action Attorney

If you’re dealing with a North Carolina co-ownership dispute and want to structure a clean buyout without filing a case, our firm can help you negotiate terms, document credits, and record the right documents. Call us today.

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.