Can co-owners get credit or reimbursement for repairs and upkeep we paid for before the property is divided or bought out? – North Carolina

Short Answer

Yes—North Carolina law can allow a co-owner to receive reimbursement (often called “contribution” or a “credit”) for certain expenses paid to preserve or improve co-owned property before a partition is finished or a buyout occurs. The strongest claims usually involve “carrying costs” like property taxes, insurance, and necessary repairs, and the request must be raised in the partition case. The amount and timing can depend on whether the expense was necessary, whether it added value, and whether the paying co-owner had exclusive possession.

Understanding the Problem

In a North Carolina partition action involving inherited land, can one co-owner get reimbursed or credited for repairs and upkeep paid before the court divides the property or one side buys out the others? The decision point is whether the expenses qualify under North Carolina’s partition and cotenancy rules as reimbursable “carrying costs,” “necessary repairs,” taxes/loan-related payments, or improvements, and whether the claim is raised in the partition proceeding in time.

Apply the Law

North Carolina partition cases can include an “accounting” between co-owners so the final division (or sale proceeds, or buyout math) reflects certain expenses one co-owner paid that benefited the shared property. North Carolina statutes recognize a right to contribution for “carrying costs” and set specific rules for (1) necessary repairs, (2) improvements, and (3) taxes and certain loan-related payments. These issues are typically handled in the partition case pending in Superior Court (often through the Clerk of Superior Court, depending on the issue and procedure), and the co-owner seeking reimbursement generally must apply to assert the claim during the partition proceeding.

Key Requirements

The expense must fit a reimbursable category: North Carolina recognizes contribution/credits for “carrying costs” (including taxes, insurance, repairs, and certain loan payments), and it treats “necessary repairs” differently from optional upgrades.
Improvements are limited to value added (or cost, if lower): For improvements, reimbursement is generally capped at the lesser of the value added as of the date the partition case began or the actual cost, and sometimes the improved portion can be allocated to the improving co-owner if it can be done fairly.
Timing and procedure matter in the partition case: The claim must be asserted by application in the partition proceeding, and property-tax reimbursement in a partition case is limited to taxes paid within a defined lookback period.

What the Statutes Say

N.C. Gen. Stat. § 46A-27 (Carrying costs; improvements; right to contribution) – Defines “carrying costs” (including taxes, insurance, repairs, and certain loan payments), allows contribution, sets procedure/timing to assert the claim, and limits property-tax contribution to taxes paid within the 10 years before the partition petition (plus interest at the legal rate).
N.C. Gen. Stat. § 41-86 (Reimbursement of a cotenant) – Addresses contribution for necessary repairs (with limits tied to exclusive possession and rent/profit accounting), improvements (generally not reimbursable outside partition, but allowed in partition in specified forms), and reimbursement for taxes and interest on an existing encumbrance (with an exclusive-possession limitation for interest).
N.C. Gen. Stat. § 105-363 (Remedies of cotenants paying taxes) – Allows a co-owner who pays more than their share of property taxes to claim a lien-like right against other co-owners’ shares that can be enforced in partition.

Analysis

Apply the Rule to the Facts: Here, multiple siblings co-own inherited land and a partition petition is already filed, with one sibling wanting a buyout to keep the property in the family. If one or more siblings have been paying property taxes, homeowner’s insurance, necessary repairs to keep the home site from deteriorating, or payments on a loan tied to acquiring the property, those items often fit North Carolina’s “carrying costs” framework and can be raised for contribution in the partition case. If a sibling paid for upgrades (for example, remodeling or adding structures), reimbursement is usually limited and is commonly measured by the lesser of cost or value added as of the filing date of the partition proceeding.

Process & Timing

Who files: The co-owner seeking reimbursement/credit. Where: In the pending partition case in the Superior Court in the county where the land is located (often handled through the Clerk of Superior Court depending on the step). What: An application/motion in the partition proceeding requesting contribution/credits and an accounting, supported by records (receipts, invoices, tax bills, insurance declarations, canceled checks, and proof of payment). When: Under North Carolina’s partition statute, the contribution request must be asserted during the partition proceeding; for an actual partition, it must be raised before the commissioners file their report.
Document and categorize the expenses: Separate “carrying costs” (taxes, insurance, necessary repairs, qualifying loan payments) from “improvements” (upgrades). For improvements, be prepared to address value added as of the date the partition case started, not just what was spent.
How it affects division or buyout math: If the case ends in a division, sale, or negotiated buyout, the court-approved accounting can be used to adjust distributions or the buyout amount so the paying co-owner receives the allowed credit/reimbursement.

Exceptions & Pitfalls

Exclusive possession can change the outcome: North Carolina law can limit reimbursement for necessary repairs (and certain interest payments) when the paying co-owner had exclusive possession during the period the costs were incurred.
“Necessary repairs” vs. “improvements”: Routine upkeep to preserve value is treated differently than upgrades. Improvements are commonly capped at the lesser of cost or value added (measured as of the case filing date), and some improvements may not be credited the way people expect.
Proof problems: Cash payments, missing receipts, or mixed personal/property expenses can weaken a claim. Good records and a clear timeline matter.
Waiting too long in the case: If the request is not raised in time, the court may move forward without fully accounting for those costs.

Conclusion

In North Carolina, co-owners can often seek reimbursement or credit in a partition case for qualifying “carrying costs” such as property taxes, insurance, and necessary repairs, and they may also seek limited contribution for improvements (generally capped at the lesser of cost or value added as of the filing date). The claim must be asserted in the partition proceeding, and property-tax contribution is limited to taxes paid within the 10 years before the partition petition. Next step: file an application in the partition case requesting contribution/credits and attach clear proof of payment.

Talk to a Partition Action Attorney

If co-owners are disputing repairs, upkeep, taxes, or improvements in a North Carolina partition case—and a buyout is the goal—our firm has experienced attorneys who can help explain options and timelines and present a clear reimbursement claim in the case. Call us today at [CONTACT NUMBER].

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.