Short Answer

Not by itself. In North Carolina, a settlement and release can resolve claims, but it does not convey title. Title insurers usually require a recorded conveyance (such as deeds from all heirs or a court order/commissioner’s deed) and supporting affidavits to show no other owners. If a co-owner died, additional estate steps may be needed before a deed can pass clear title.

Understanding the Problem

You want to know if you can use a signed settlement and release from a resolved partition case as proof of sole ownership so a title insurer will insure a sale. The question is whether the agreement alone, without recorded deeds or a court order, is enough under North Carolina law. Here, one co-owner died, no estate was opened, and a title insurer now asks for affidavits confirming there are no other owners.

Apply the Law

Under North Carolina law, real property does not change hands by private settlement alone. A valid conveyance requires a deed or a court order that actually vests title, and it must be recorded in the county where the land lies. When an owner dies, title to non-survivorship real estate passes to heirs or devisees at death, subject to limited estate administration rights. Within two years of death, special rules can require a personal representative to publish notice to creditors and join in any deed from heirs. Title insurers also rely on affidavits to confirm the family tree and the absence of unknown owners or claims.

Key Requirements

• Conveyance vs. release: A settlement and release resolves disputes; it does not transfer title. A notarized deed or a recorded court order must vest title.
• Heirs take at death: If a co-owner dies, heirs or devisees hold the decedent’s share subject to estate administration rights; they must sign deeds (and often spouses join) to pass marketable title.
• Two-year creditor window: Within two years of death, sales by heirs generally require a personal representative to publish notice to creditors and join in the deed, or insurers may require waiting two years.
• Recording controls priority: Even a proper deed is ineffective against creditors and purchasers until recorded in the Register of Deeds.
• Proof packages: Insurers commonly require affidavits of heirship/no-other-heirs and, if someone signed through an agent, a recorded power of attorney with clear real estate authority.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-15-2 (Title at death) – Heirs/devisees take title to real property at death, subject to administration.
• North Carolina Gen. Stat. § 28A-17-12 (Sales by heirs within two years) – Within two years, sales by heirs are void as to creditors and the personal representative unless statutory steps are satisfied.
• North Carolina Gen. Stat. § 47-18 (Registration required) – Deeds and other instruments are not valid against creditors and purchasers until recorded.
• North Carolina Gen. Stat. § 28A-2-4 (Estate proceedings; determining heirs/rights) – Allows proceedings before the clerk to determine heirs or related rights when needed.

Analysis

Apply the Rule to the Facts: Because the property was jointly owned and one co-owner died with no estate opened, the decedent’s share passed to heirs at death. A settlement and release from the partition case does not, by itself, convey their title. To insure sole ownership, the insurer will typically require recorded deeds from all heirs (often with spouses joining) to the surviving owner, plus proof that any required estate steps (publication of notice to creditors and personal representative joinder if within two years) have been handled. If any signer acted through an agent, the insurer will look for a recorded power of attorney with authority to convey real estate.

Process & Timing

1. Who files: The current owner (or buyer’s closing attorney). Where: County Register of Deeds and Clerk of Superior Court (Estates Division) as needed. What: Record curative deeds from all heirs to the surviving owner; if within two years of death, apply for Letters (AOC-E-201/202) so a personal representative can publish notice to creditors and join the deed; prepare affidavits of heirship/no-other-heirs. When: Before closing; if a PR is required, publication occurs promptly after qualification.
2. If the prior partition case can be converted to a consent order vesting title or authorizing a commissioner’s deed, move in that special proceeding before the Clerk of Superior Court and record the resulting order/deed. Timelines vary by county.
3. After recording the deeds/court order and affidavits, the title insurer reviews the package. If acceptable, you can close and record the new deed conveying out to the buyer.

Exceptions & Pitfalls

• Unknown/minor/incompetent heirs: You may need a court proceeding to identify heirs, appoint a guardian ad litem, or obtain guardianship and court approval before conveyance.
• Unrecorded or defective conveyances: A settlement agreement or unrecorded deed does not protect against creditors or purchasers; ensure all deeds are executed, notarized, and recorded in the correct county.
• Two-year rule traps: Selling within two years of death without personal representative publication and joinder can lead to insurability problems.
• Agent signatures: If someone signed through a power of attorney, the POA should be recorded and specifically authorize real estate conveyances; otherwise the deed may be rejected.
• Creditor/Medicaid claims: Even when no estate is opened, known creditor issues can affect insurability; insurers often require creditor notice and related documentation.

Talk to a Partition Action Attorney

If you’re dealing with a partition case that settled but you still need to clear title after a co-owner’s death, 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.