Dec312025
Partition Action Q&A Series

How can I get reimbursed for the money I put into repairs and upkeep before the sale proceeds are split? – North Carolina

Short Answer

In North Carolina, a co-owner (cotenant) can often get reimbursed in a partition case for certain money spent to preserve or improve the property before sale proceeds are divided. The usual way is to file an application in the partition proceeding asking the court to credit or reimburse qualifying expenses (like carrying costs and some repairs) from the sale proceeds before the net amount is split. Reimbursement can be limited if the paying cotenant had exclusive possession during the relevant time or if the expense counts as an “improvement” rather than a necessary repair.

Understanding the Problem

In a North Carolina partition action, can a cotenant get paid back for money spent on repairs, insurance, taxes, or other upkeep before the court splits sale proceeds among the cotenants? The decision point is whether the expense qualifies for contribution or a credit in the partition case, and whether any limits apply based on possession, the type of expense, and when the request is raised in the proceeding. This question often comes up when family members share ownership but disagree about who should bear the costs of maintaining the home while the title and ownership shares get sorted out.

Apply the Law

North Carolina partition law allows a cotenant to seek contribution (reimbursement/credit) for certain costs paid to preserve the property and, in some situations, for improvements. These claims are typically handled inside the partition case so the court can adjust the distribution of sale proceeds. The request is made by application during the proceeding, and property tax reimbursement in a partition case is limited to taxes paid during the 10 years before the partition petition is filed (plus interest at the legal rate).

Key Requirements

  • The expense must qualify: Courts generally distinguish between “carrying costs” and “necessary repairs” (often reimbursable) versus “improvements” (handled under a different rule and often limited to the lesser of cost or value added).
  • Timing and procedure must be followed: The cotenant must assert the right to contribution by application in the partition proceeding (during the proceeding for a sale; before commissioners report in an actual partition).
  • No disqualifying possession/offset issues: Reimbursement can be reduced or denied in certain situations, including periods of exclusive possession for some categories of expenses, and the court may consider accounting issues when one cotenant had the benefit of the property.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Multiple relatives appear to be cotenants of a family home in North Carolina, but the deed chain is unclear due to a past quitclaim deed. In that situation, reimbursement usually depends on (1) confirming who the cotenants are and their shares, and (2) showing that the money spent fits within reimbursable categories like carrying costs or necessary repairs, rather than purely optional upgrades. If the paying relative lived in the home alone for a period, the “exclusive possession” limits can affect whether certain repair or interest payments get reimbursed or how the court offsets benefits and burdens before splitting sale proceeds.

Process & Timing

  1. Who files: The cotenant seeking reimbursement/credit (or that cotenant’s attorney). Where: The Clerk of Superior Court in the county where the property is located (partition is typically handled as a special proceeding in North Carolina). What: An application/motion in the partition proceeding requesting contribution/credit for carrying costs, necessary repairs, taxes, insurance, and (if applicable) improvements, supported by documentation. When: In a partition sale, the application can be made at any time during the partition proceeding; for property taxes, the claim is limited to taxes paid in the 10 years before the partition petition is filed (plus interest at the legal rate).
  2. Next step: The court (or clerk) typically reviews evidence such as receipts, invoices, canceled checks, insurance declarations, tax bills, and proof of payment, and may consider possession and any accounting issues. If ownership shares are disputed because of title problems, the proceeding may address sale first and reserve competing ownership claims for later determination in appropriate situations.
  3. Final step: If the property is sold, the court applies allowed credits/contribution amounts and then distributes the remaining net proceeds among the cotenants based on their determined interests, subject to any required handling of proceeds for minors, unknown cotenants, or unlocatable parties.

Exceptions & Pitfalls

  • Repairs vs. improvements: A necessary repair (to keep the home from deteriorating) is treated differently from an improvement (a value-adding upgrade). Improvement reimbursement in partition is commonly limited to the lesser of cost or value added as of the start of the proceeding, and the proof required often differs from a basic repair claim.
  • Exclusive possession issues: If one cotenant had exclusive possession for a period, North Carolina law can limit contribution for certain categories (and can affect how the court balances expenses against the benefit of living in or controlling the property).
  • Documentation gaps: Cash payments, missing receipts, or unclear descriptions (for example, “renovation” without itemization) can make it harder to prove the expense qualifies and was actually paid by the requesting cotenant.
  • Waiting too long to file: Because the property tax lookback is tied to the filing date of the partition petition, delay can shrink the reimbursable window even if the taxes were truly paid.
  • Title uncertainty: When the deed chain is unclear, a cotenant may need to prove ownership status before the court can confidently allocate credits and proceeds. Title issues can also affect who must receive notice and who must be joined in the proceeding.

Conclusion

North Carolina law often allows a cotenant to receive a credit or reimbursement in a partition case for qualifying repairs and upkeep, especially carrying costs like property taxes, insurance, and repairs that preserve the property. Improvements may be reimbursed in a more limited way, and exclusive possession can change the analysis. The most important next step is to file an application in the partition proceeding with the Clerk of Superior Court requesting contribution and attaching proof of payment, keeping in mind the 10-year limit on property tax reimbursement measured back from the filing date.

Talk to a Partition Action Attorney

If a co-owner paid for repairs, taxes, insurance, or upgrades and wants those amounts addressed before sale proceeds are divided in a North Carolina partition case, an attorney can help identify which expenses qualify, what proof is needed, and when to file the request. 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.