Sep232025
Probate Q&A Series

Can I recover notary or closing costs from estate funds when selling property? – North Carolina

Short Answer

Yes—if the expenses are reasonable, necessary to administer the estate, and the sale is handled under the personal representative’s authority, North Carolina law allows reimbursement from estate funds subject to the Clerk of Superior Court’s approval. If the heirs are the true sellers (because title to the real estate vested in them at death), seller-side closing costs are usually their expense, not the estate’s, though the personal representative’s necessary administrative costs (like required notarizations for estate documents) can still be reimbursed with proper documentation.

Understanding the Problem

You’re the North Carolina estate’s administrator and need to sell a house. The purchase contract accidentally lists the “estate” as the seller, but title really sits with you and another heir, and you’re working with the buyer and title company on signatures, notarizations, and a contract fix under a tight deadline. The narrow question: can you charge notary and closing expenses to the estate instead of paying them personally?

Apply the Law

Under North Carolina law, the Clerk of Superior Court can approve reimbursement of reasonable and necessary costs of administering the estate. A personal representative may hire professionals and incur routine costs (including notarizations) to carry out estate duties. Real property, however, vests in heirs at death; unless the will or a court order gives the personal representative authority to sell, a sale is typically by the heirs. When heirs are the sellers, their seller-side closing costs are generally not estate expenses. When the personal representative sells under proper authority (for example, to pay debts or under a will’s power of sale), closing costs tied to that sale are ordinarily estate expenses, subject to clerk review in the accounting.

Key Requirements

  • Identify who has authority to sell: If the will gives sale power or you obtain a court order/special proceeding, the personal representative is the seller; otherwise, heirs are the sellers and the personal representative may need to join.
  • Expense must be necessary and reasonable: Only costs that are actually needed to administer the estate (for example, required notarizations, deed recording for an authorized sale) are reimbursable.
  • Clerk approval through accounting: Keep receipts and include the expenses on the estate’s annual or final account; the clerk reviews reasonableness before approval.
  • Heirs’ sales within two years: If heirs sell within two years of death, the personal representative generally must join after notice to creditors; seller costs typically remain with the heirs unless the estate is the authorized seller.
  • Document allocation at closing: If the personal representative is the seller under authority, closing fees can be paid from estate funds at closing; otherwise allocate seller costs to heirs and reserve the personal representative’s administrative out-of-pocket items for reimbursement in the estate accounting.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Because the contract names the “estate” as seller, first confirm whether you, as administrator, have authority to sell or whether this is truly an heirs’ sale. If the will gives you sale power or you obtain a court order to sell for the estate’s benefit (for example, to pay debts), then ordinary seller closing costs and related notarizations are estate expenses, reimbursable through the accounting. If instead the heirs are the sellers and you only join to protect creditor rights, seller-side closing costs typically belong to the heirs, but your necessary administrative expenses (required notarizations, filings) can be reimbursed from the estate with proof.

Process & Timing

  1. Who files: Personal representative. Where: Clerk of Superior Court in the county where the estate is administered. What: Open the estate, publish notice to creditors, and track out-of-pocket administrative expenses; include them with receipts in the estate’s Annual or Final Account (official AOC forms). When: File accountings on the court’s schedule; reimbursement is typically approved when the clerk audits your account.
  2. If the estate must sell the real property, confirm authority: rely on a will’s power of sale or file a special proceeding in the county where the land is located to obtain an order authorizing the personal representative to sell. Expect several weeks for coordination; timing varies by county.
  3. At closing, if the personal representative is the seller under authority, direct appropriate closing charges to the estate on the settlement statement. After closing, submit the accounting with vouchers; the clerk reviews and approves reasonable, necessary costs.

Exceptions & Pitfalls

  • Do not assume the “estate” is the seller—title vests in heirs unless the will or a court order puts the personal representative in the seller’s seat.
  • Unsupported or nonessential charges can be denied; keep detailed receipts and limit reimbursement requests to what was necessary for administration.
  • If seeking a court order to sell, all heirs/devisees must be properly served; missed parties can void the order as to them.
  • If creditor exposure is unclear, consider escrowing proceeds rather than distributing immediately to avoid disputes.
  • Avoid paying yourself commissions early; the clerk must approve compensation and will review expenses for reasonableness.

Conclusion

In North Carolina, you can recover notary and closing costs from estate funds if they are reasonable, necessary to administer the estate, and the sale is conducted by the personal representative under proper authority; the clerk will review and approve them through the accounting. If the heirs are the sellers, their seller-side closing costs ordinarily are not estate expenses. Next step: confirm who is the legal seller and include any reimbursable administrative costs with receipts in your next court-filed account.

Talk to a Probate Attorney

If you’re dealing with whether notary or closing costs can be charged to the estate during a North Carolina real estate sale, 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.

Category: Probate Q&A Series

Author: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.