Jan12026
Partition Action Q&A Series

What happens if property taxes on an inherited home aren’t paid—can the property be taken in a tax foreclosure, and do heirs have any chance to redeem it? – North Carolina

Short Answer

In North Carolina, unpaid property taxes become a lien on the home, and the county (and other taxing units) can enforce that lien through a tax foreclosure that can result in the property being sold. Heirs can sometimes stop the loss by paying the delinquent taxes, interest, and costs before the foreclosure sale is finalized, but the timing is critical and the exact “redemption” window depends on the type of tax foreclosure used. When multiple heirs own the home together, North Carolina law also allows one co-owner to pay taxes to protect a share and seek reimbursement from the others.

Understanding the Problem

In North Carolina, can heirs lose an inherited home if property taxes are not paid, and if a tax foreclosure starts, can the heirs still save the property by paying what is owed? This question usually comes up when multiple family members have interests in the same home, no one is consistently paying the tax bill, and there is disagreement about whether to sell the property or keep it. The key trigger is delinquent property taxes that remain unpaid long enough for the taxing authority to start a foreclosure process.

Apply the Law

North Carolina treats unpaid property taxes as a lien against the real estate. If the taxes remain unpaid, the taxing unit (often the county, sometimes with other taxing units involved) can pursue collection and may file a tax foreclosure that can end in a court-ordered sale. In family co-ownership situations, North Carolina also gives co-owners tools to prevent one person’s inaction from wiping out everyone’s interest, including the ability for one co-owner to pay some or all of the taxes and preserve rights against the other owners.

Key Requirements

  • Delinquent tax lien exists: The taxes must be unpaid and constitute a lien on the property, along with interest, penalties, and allowable costs.
  • Taxing authority uses a foreclosure process: The county (and other taxing units) must follow a statutory tax foreclosure procedure that leads to a sale or transfer of the property.
  • Timely cure/redemption effort: To keep the home, an heir (or someone acting for the owners) generally must pay the delinquent amounts within the time allowed by the specific foreclosure method and the court’s schedule.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The facts describe an inherited home with multiple decision-makers and unpaid property taxes. Because unpaid taxes can be enforced as a lien, the county can start a tax foreclosure that may end in a sale of the home if the delinquency is not cured in time. If the home is effectively co-owned among heirs (or will be once the estate is settled), North Carolina law allows one co-owner to pay some or all of the taxes to protect an interest and then seek reimbursement or a lien against the others under the cotenant remedies statute.

Process & Timing

  1. Who files: The taxing unit (often the county). Where: Typically in the North Carolina General Court of Justice in the county where the property is located (often through the Clerk of Superior Court or in a civil action, depending on the foreclosure method). What: A tax foreclosure filing seeking sale of the property to satisfy the tax lien. When: After taxes become delinquent and the taxing unit decides to enforce the lien; the schedule and notice periods vary by the procedure used.
  2. Notice and opportunity to cure: The taxing unit must provide required notices and proceed through the steps set by statute and local practice. During this period, owners and heirs often can stop the process by paying the delinquent taxes, interest, and costs before the sale becomes final, but the cutoff point depends on the specific foreclosure track and court deadlines.
  3. Sale and distribution: If the matter proceeds to sale, the property can be sold and tax liens are typically paid first from the proceeds in a court-ordered sale. If a taxing unit becomes the purchaser, it may later resell the property under the rules that apply to governmental purchasers of tax-foreclosed property.

Exceptions & Pitfalls

  • Assuming “someone else will pay”: Inherited property often sits in limbo while heirs disagree, but the tax lien keeps growing and the county can still foreclose.
  • Not using cotenant protections: When multiple heirs share ownership, one heir may be able to pay only the portion tied to that heir’s share (to release the lien from that share) or pay the entire bill and assert a lien against the other co-owners for reimbursement, depending on the situation.
  • Confusing tax foreclosure with partition: A partition sale is a court-supervised way to sell co-owned property and divide proceeds; a tax foreclosure is driven by delinquent taxes and can force a sale on a timeline controlled by the taxing unit.
  • Overlooking who has the duty to pay: If a life estate exists, the life tenant generally has the duty to pay property taxes, and failure to do so can create liability to others with future interests.
  • Waiting for probate issues to resolve: A will, co-executors, or the death of a co-executor can slow decision-making, but it does not automatically stop tax enforcement. Coordination with the estate administration process matters.

Conclusion

In North Carolina, unpaid property taxes can lead to a tax foreclosure and a forced sale of an inherited home. Heirs may be able to prevent the loss by paying the delinquent taxes, interest, and costs before the sale becomes final, but the deadline depends on the foreclosure method and court schedule. In co-ownership situations, one heir can sometimes pay taxes to protect a share or pay the full amount and seek reimbursement from other co-owners. Next step: confirm the current delinquency and foreclosure status with the county tax office and act before the foreclosure sale deadline.

Talk to a Partition Action Attorney

If a family is dealing with an inherited home where property taxes are not being paid and co-owners cannot agree on a sale, an attorney can help explain options, timelines, and how a partition case may interact with tax liens and foreclosure risk. 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.