Short Answer

In North Carolina, start by getting the closing paperwork and recorded deed for the sale; these show the sale price and seller-paid costs. Next, trace the deposit or wire into the estate bank account and reconcile all sale-related disbursements. Then apply North Carolina’s statutory order of payment to claims and expenses and document everything on your annual or final Account (AOC‑E‑506) with vouchers. If a creditor’s claim is unitemized, request itemization and insurance offsets before paying.

Understanding the Problem

You are the personal representative in North Carolina asking: how can I confirm what the estate’s house and land sold for and determine the net proceeds to report and use to pay claims and expenses? One key fact: the real property has been sold, but you do not yet have the sale price or the net amount delivered to the estate.

Apply the Law

North Carolina requires personal representatives to keep detailed records and file inventories and accounts that show all receipts and disbursements, including gains from sales. The Clerk of Superior Court audits accounts and expects vouchers (e.g., closing statements, receipts, cancelled checks) and bank statements. Real property may be sold by the personal representative under statutory authority or by heirs/devisees; if sold through a judicial sale, a report of sale and confirmation are filed. When sale proceeds come into your hands, you must (1) document the sale price and closing costs, (2) show the funds’ path into the estate account, and (3) pay claims in the statutory priority, only after they are properly supported.

Key Requirements

• Prove the sale price and costs: Obtain the Closing Disclosure/settlement statement and the recorded deed (excise tax stamps indicate consideration). If it was a judicial sale, get the report of sale and confirmation from the court file.
• Trace the funds: Show the deposit/wire into the estate’s bank account and reconcile all disbursements with monthly statements and vouchers.
• Account formally: Report receipts, disbursements, and gains on the Account (AOC‑E‑506) with supporting vouchers; file the Inventory (AOC‑E‑505) and any needed supplemental inventory.
• Apply claim priority: Pay allowed claims and expenses in the statutory order; request itemization and insurance adjustments before paying unitemized creditor claims.
• Reimbursements to you: Seek reimbursement for necessary funeral/burial and asset‑preservation expenses with receipts; the clerk reviews for reasonableness.
• Use proper bank accounts: Keep funds in an estate account under the estate’s EIN; avoid commingling and do not park funds long‑term in a law firm trust account.
• Expect court cost assessment: Court fees include proceeds from realty coming into your hands; additional fees may be due when you report them.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-21-3 (Contents of accounts) – Accounts must show receipts, disbursements, and gains from sales.
• North Carolina Gen. Stat. § 28A-19-6 (Order of payment of claims) – Sets the priority for paying claims and expenses.
• North Carolina Gen. Stat. § 28A-17-1 (Sale of real property to pay debts) – Authorizes judicial sale and related filings (e.g., report of sale, confirmation).
• North Carolina Gen. Stat. § 7A-307 (Clerk’s fees in estates) – Estate fees include proceeds from sale of realty coming into the fiduciary’s hands.

Analysis

Apply the Rule to the Facts: Because you are the personal representative and the real property has been sold, request the Closing Disclosure and wire confirmation from the closing attorney and pull the recorded deed to confirm price. Reconcile the incoming wire with the estate bank statement and list the net as a receipt on AOC‑E‑506 with vouchers. For the nursing home claim, send a written demand for an itemized statement and insurance offsets before paying; hold a reasonable reserve until the claim is supported or disallowed. Submit receipts for the funeral, headstone, and necessary landscaping for reimbursement as administration or funeral-related expenses.

Process & Timing

1. Who files: Personal representative. Where: Clerk of Superior Court in the county of administration. What: Inventory (AOC‑E‑505), Account (AOC‑E‑506) with vouchers (closing statement, deed, bank statements). When: File the inventory within 3 months of qualification; file an annual account by the 15th day of the fourth month after the estate’s selected fiscal year end; file the final account within one year of qualification unless extended.
2. Request from the closing attorney: Closing Disclosure/ALTA/HUD‑1, final ledger, wire confirmation, and seller-side invoices. Retrieve the recorded deed (excise tax stamps reflect consideration). If it was a court‑ordered sale, get the report of sale and confirmation from the court file. This typically can be gathered within a few weeks; county practices vary.
3. Reconcile deposits and payoffs, apply the statutory claim priority, and submit the annual or final Account with all vouchers. The clerk audits; if satisfactory, the clerk approves the account and you proceed to final distribution.

Exceptions & Pitfalls

• If the sale was a judicial sale, check the special proceeding file for the report of sale, upset bids, and confirmation; net funds may be held in the closing attorney’s trust until confirmation.
• Do not assume net sale proceeds are immediately distributable—liens, taxes, and sale costs are paid first; then claims are paid in statutory order.
• Unitemized creditor claims: Request itemization and insurance/Medicare/Medicaid offsets in writing; if not provided, consider disallowing per the claims procedures and reserve funds until deadlines pass.
• Commingling funds or parking estate money in a law firm trust account can cause audit issues; use an estate account under the estate’s EIN and maintain monthly statements.
• Bond sufficiency and court costs can change when sale proceeds come into your hands; confirm bond coverage and expect additional clerk fees tied to reported proceeds.
• Missing vouchers delay approval; keep receipts, invoices, and cancelled checks for funeral, headstone, and preservation costs to support reimbursement.

Talk to a Probate Attorney

If you’re trying to verify a sale price, reconcile net proceeds, and decide which claims to pay first, our firm has experienced attorneys who can help you understand your options and timelines. Contact us today to get started.

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.