Dec32025
Partition Action Q&A Series

How can I make sure the commissioner credits the delinquent property taxes I paid before the sale when the proceeds are split multiple ways? – North Carolina

Short Answer

In a North Carolina partition sale, a co-tenant who paid delinquent property taxes before the sale can ask the court to credit those payments before the net sale proceeds are divided. This is done by asserting a contribution claim in the partition proceeding and ensuring the commissioner’s report and final order reflect the tax credits. If the commissioner’s accounting does not fully credit eligible payments, a party may timely challenge the report and request corrections from the clerk of superior court.

Understanding the Problem

The question focuses on a North Carolina partition sale where a co-owner paid delinquent property taxes to keep the property from tax foreclosure and wants those payments credited before sale proceeds are split among multiple heirs. The concern is how a co-owner can ensure the commissioner and the court properly account for those delinquent taxes in the final distribution, especially when the sale proceeds must also cover realtor, commissioner, and attorney fees. There is also anxiety about whether notice of hearings was effectively received and whether all charges taken “off the top” were proper and transparent.

Apply the Law

Under North Carolina law, partition of real property is a special proceeding, and the court supervises both the sale and the distribution of proceeds. Co-tenants who pay carrying costs such as property taxes have a statutory right to seek contribution from other co-tenants in the partition case, and the commissioner must account for those adjustments in the report filed with the clerk of superior court. If the report or final order does not correctly reflect those credits, the statutes allow for objections and, in some circumstances, later motions for relief based on mistake, fraud, or similar grounds.

Key Requirements

  • Right to contribution for taxes: A co-tenant who paid property taxes or other carrying costs has a right to contribution from other co-tenants for qualifying payments made within the statutory time frame, including delinquent taxes paid to prevent foreclosure.
  • Assertion of the claim during the partition proceeding: In a partition sale, the co-tenant must assert the contribution right “on application” during the proceeding so the clerk and commissioner can build those credits into the sale accounting and distribution.
  • Commissioner’s report, notice, and challenges: The commissioner must file a detailed report and serve it on all parties; parties have a limited time to object or seek relief if the report does not properly credit tax payments or misstates fees and distributions.

What the Statutes Say

Analysis

Apply the Rule to the Facts: In these facts, a co-owner in a North Carolina partition sale paid delinquent property taxes to stop foreclosure. Under § 46A-27 and § 105-363, that co-owner has a right to contribution from the others and, for taxes paid within 10 years before the partition petition, interest on those payments. To protect that right, the co-owner must ensure the claim is clearly raised in the partition proceeding, documented with tax bills and receipts, and incorporated into the commissioner’s report and the clerk’s final order so the co-owner’s net share is adjusted before the remaining proceeds are split equally.

Process & Timing

  1. Who files: A co-tenant who paid the delinquent property taxes. Where: In the existing partition special proceeding in the office of the clerk of superior court for the county where the property lies. What: A written application or motion asserting the right to contribution for taxes and other carrying costs, attaching copies of tax bills, receipts, and any prior emails to the commissioner or counsel. When: In a partition sale, at any time during the partition proceeding, but before the court enters a final order distributing sale proceeds.
  2. The commissioner, after receiving direction from the clerk or by agreement of the parties, prepares an updated accounting that shows: gross sale price; all costs paid off the top (realtor commission, court-approved attorney fees, commissioner fees, and any allowed tax reimbursements); and each co-tenant’s adjusted share. The commissioner files and serves this report on all parties within the statutory period, and parties have a short window—often on the order of days—to file written exceptions.
  3. The clerk of superior court holds a hearing on any timely exceptions or motions concerning the report. After resolving disputes about tax credits, fees, and distributions, the clerk enters an order confirming the report (as filed or as modified). The commissioner or clerk then disburses funds in the manner ordered—commonly by checks mailed to each co-tenant, though alternative methods like wire transfers may sometimes be approved by the court or agreed in writing.

Exceptions & Pitfalls

  • Contribution for property taxes is generally limited to amounts paid within 10 years before the partition petition, and interest is based on the legal rate; older payments may not be fully recoverable in the partition case.
  • A co-tenant who does not clearly and timely assert the contribution right or provide documentation of delinquent tax payments risks the commissioner treating those payments as voluntary, which can reduce or eliminate the credit in the final distribution.
  • If the commissioner’s report and mailed notices are served at the last known address, the court may deem notice effective even if mail was not actually received, so failing to monitor the court file or communicate updated contact information can cause missed objection deadlines.
  • Confusion often arises over what fees are properly taken “off the top.” Only court-approved costs—such as statutorily guided commissioner compensation and reasonable attorney fees approved by the clerk—should be deducted before dividing the net proceeds; parties should review the itemized accounting rather than rely on verbal summaries.
  • If the report is confirmed and later a serious mistake or possible fraud comes to light regarding tax credits or fees, relief may still be sought by motion in the same proceeding, but the standard is higher and the court will weigh finality and any prejudice to others.

Conclusion

In a North Carolina partition sale, a co-owner who paid delinquent property taxes can protect those payments by asserting a statutory contribution claim in the partition proceeding, documenting the taxes paid within the 10-year lookback, and ensuring the commissioner’s report and the clerk’s order reflect the proper credit before net proceeds are divided. The key practical step is to file a written application or objection with the clerk of superior court promptly after receiving the commissioner’s report so any missing or incorrect tax credits can be corrected in the final accounting.

Talk to a Partition Action Attorney

If a partition sale in North Carolina involves disputed credits for delinquent property taxes or confusion about how the commissioner handled fees and distributions, our firm has experienced attorneys who can help clarify the accounting, assert contribution rights, and address notice or report issues. 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: Partition Action 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.