Dec202025
Partition Action Q&A Series

How can I make a co-owner pay their percentage of past and future repair costs before we list the house for sale? – North Carolina

Short Answer

In North Carolina, a co-owner usually cannot be forced to pay repair money “up front” just because another co-owner wants to list the home. However, if one co-owner pays necessary repairs, taxes, insurance, or other carrying costs, North Carolina law often allows that co-owner to seek contribution or reimbursement and have those amounts credited in a partition case and addressed when the property is sold and proceeds are divided. A written agreement can also require advance funding, but without an agreement, the practical leverage is typically reimbursement at sale (often through a partition-and-sale process) rather than prepayment.

Understanding the Problem

In North Carolina, when two people co-own a house and one owner wants to clean up and repair the property before listing it, a common question is whether a co-owner can be required to pay a percentage share of past and future repair costs before the sale happens. The decision point is whether the goal is to (a) obtain a binding agreement for advance funding or (b) use a court process to ensure the paying co-owner receives credit or reimbursement from sale proceeds. Timing matters because repair spending often happens before a listing, while reimbursement often gets decided later when proceeds are divided.

Apply the Law

North Carolina recognizes that co-owners (often called cotenants) can have rights to contribution and reimbursement for certain property-related expenses. The core idea is that a cotenant who pays qualifying expenses can ask a court to account for those payments and adjust the parties’ shares when the property is partitioned or sold in a partition sale. In many cases, the most direct forum for resolving disagreements about repairs and allocating costs is a partition proceeding handled through the Clerk of Superior Court in the county where the land is located, with reimbursement typically addressed during that proceeding and reflected in the final distribution of proceeds.

Key Requirements

  • Qualifying expense (repairs vs. improvements vs. carrying costs): North Carolina treats necessary repairs and “carrying costs” differently from elective upgrades; improvements are commonly reimbursed only up to certain limits and often based on value added.
  • Proof and documentation: The cotenant seeking contribution generally needs clear records showing what was done, why it was needed to preserve value, and what was paid.
  • Proper procedure in the right forum: Contribution and credits are commonly asserted by application within a partition case so the court can adjust the final allocation of sale proceeds.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The facts describe a 75%/25% co-ownership and a vacant property needing cleanup and repairs to maximize sale value. If one cotenant pays for necessary repairs and other carrying costs to preserve the property and support a sale, North Carolina law can allow that cotenant to request contribution or a credit so that, when the home sells, the paying cotenant is reimbursed (or credited) before the remaining net proceeds are split 75/25. If the work is more like an elective upgrade (an “improvement”), reimbursement may be limited and often depends on the value added and the timing rules that apply in partition.

Process & Timing

  1. Who files: The cotenant seeking a forced sale or a court-supervised allocation of costs. Where: Office of the Clerk of Superior Court in the county where the property is located (North Carolina). What: A partition petition and, within the case, an application asserting contribution/credit for carrying costs, repairs, taxes, insurance, and (when applicable) qualifying improvements. When: As soon as it becomes clear the co-owners cannot agree on funding and timing; for property tax contribution within a partition case, the statute limits recovery to taxes paid within the 10 years before filing (plus interest at the legal rate).
  2. Next step with realistic timeframes; note county variation if applicable: After filing, the other cotenant must be served and given time to respond. The Clerk may schedule hearings or other steps to determine how partition should proceed and how claimed credits will be handled. Timing varies by county and by whether there are disputes about the scope of repairs and documentation.
  3. Final step and expected outcome/document: If the matter proceeds to a partition sale, the sale closes and the case addresses distribution. The final distribution typically reflects allowed credits or reimbursements (for qualifying carrying costs/repairs and, if applicable, allowable improvement claims) before the remaining proceeds are divided according to ownership shares.

Exceptions & Pitfalls

  • Necessary repairs vs. improvements: A dispute often turns on whether the expense preserved value (repair/carrying cost) or added value (improvement). Improvements may be reimbursed only up to the lesser of cost or value added, and the timing and proof issues can be more complicated.
  • Exclusive possession limits: If one cotenant had exclusive possession during the period when repairs or interest were paid, North Carolina law can limit or eliminate contribution for those items in certain circumstances.
  • Poor documentation: Missing invoices, unclear scope-of-work, cash payments, or “bundled” projects can make it harder to prove what was necessary and what should be credited at sale.
  • Spending without a plan: Large pre-listing spending without a written agreement can trigger disputes over whether the work was necessary, whether bids were reasonable, and whether the other cotenant had notice and an opportunity to participate.

Conclusion

In North Carolina, a co-owner usually cannot be forced to prepay repair money before a listing unless there is a written agreement requiring it. The more common legal remedy is contribution or reimbursement through a partition case, where qualifying repairs and carrying costs can be credited and repaid from sale proceeds before the remaining net proceeds are split by ownership percentage. A practical next step is to file a partition petition with the Clerk of Superior Court in the county where the property is located and request contribution/credits for carrying costs during the case.

Talk to a Partition Action Attorney

If a co-owner disagreement is blocking repairs and a sale, our firm has experienced attorneys who can help explain North Carolina partition options, how contribution credits can work, and what timelines to expect. 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.