Jan232026
Real Estate Q&A Series

If a property is owned as joint tenants or tenants by the entirety and one spouse dies, does the surviving spouse automatically become the sole owner? – North Carolina

Short Answer

In North Carolina, if spouses own real estate as tenants by the entirety, the surviving spouse generally becomes the sole owner automatically at the other spouse’s death by right of survivorship. If the deed creates a joint tenancy with right of survivorship, the surviving joint tenant generally becomes the sole owner as well, but North Carolina applies a 120-hour (5-day) survival rule in many survivorship situations. Even when title passes automatically, an existing deed of trust (mortgage lien) usually remains attached to the property and must still be addressed.

Understanding the Problem

In North Carolina real estate deals, a common question is whether a surviving spouse automatically becomes the sole owner when the deed says “joint tenants with right of survivorship” or “tenants by the entirety,” especially when a deed of trust references a spouse who has died. The decision point is whether the deed’s form of co-ownership includes survivorship and, if so, whether the surviving spouse’s ownership changes immediately at death or only through an estate process. This question often comes up when a buyer, lender, or title company needs to know who can sign to sell or refinance and whether an existing lien still affects the property.

Apply the Law

North Carolina recognizes survivorship ownership in both tenancy by the entirety (for married couples) and joint tenancy with right of survivorship (for co-owners, including spouses if the deed is drafted that way). With survivorship, the deceased owner’s interest generally does not pass through the estate; instead, the surviving owner takes the whole interest by operation of law. However, survivorship does not automatically erase a valid deed of trust recorded against the property.

Key Requirements

  • Survivorship ownership was actually created: The deed must show a survivorship form of title (tenancy by the entirety for spouses, or joint tenancy with right of survivorship if stated/created under North Carolina rules).
  • The surviving spouse (or co-owner) legally “survived” the decedent: North Carolina applies a 120-hour survival requirement to many joint tenancy survivorship interests, which can affect who takes title if deaths are close in time.
  • Any recorded lien still has to be dealt with: A deed of trust typically continues as a lien on the property even though ownership shifts to the survivor, meaning payoff, assumption/refinance, or foreclosure risk may remain.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The facts describe a property a buyer wants to purchase where the public record shows a deed of trust tied to a deceased spouse and the deed references joint tenancy/tenancy by the entirety. If the deed was truly tenancy by the entirety, North Carolina law generally treats the surviving spouse as the sole owner at death by survivorship, meaning the deceased spouse’s interest is not something heirs can convey. If the deed was joint tenancy with right of survivorship, the survivor generally takes the whole interest as well, but the 120-hour survival rule can matter if deaths were close in time. In either case, a recorded deed of trust generally remains a lien that must be cleared or otherwise handled for clean title.

Process & Timing

  1. Who confirms ownership: the buyer’s closing attorney/title company (or the parties) by reviewing the recorded deed and death documentation. Where: the Register of Deeds in the county where the property is located. What: obtain certified copies of the deed and deed of trust, and obtain a death certificate (and sometimes an affidavit of survivorship, depending on local title practice). When: before any contract closing so the correct owner signs.
  2. Clear the signing authority: if survivorship applies, the surviving spouse typically signs as the current owner; if survivorship does not apply (or is uncertain), an estate may need to be opened and a personal representative may need to sign instead.
  3. Address the deed of trust: confirm whether the loan is still outstanding and how it will be satisfied at closing (payoff), assumed/refinanced, or otherwise resolved so the buyer receives marketable title.

Exceptions & Pitfalls

  • The deed language may not match the assumption: some deeds list two names but do not create survivorship (or create a different form of ownership), which can mean the deceased owner’s interest must pass through an estate.
  • Divorce changes tenancy by the entirety: an absolute divorce converts tenancy by the entirety into a tenancy in common, which can eliminate survivorship if the divorce happened before death.
  • Survivorship does not automatically remove liens: even if the surviving spouse becomes sole owner, a properly recorded deed of trust can still encumber the property and may need payoff or other resolution to sell.
  • Title “perfection” paperwork may still be needed for closing: even when ownership changes automatically by law, title insurers and closing attorneys often require recorded documentation to show the chain of title clearly before a sale or refinance.

Conclusion

In North Carolina, a surviving spouse generally becomes the sole owner automatically when the property was held as tenants by the entirety, and a surviving joint tenant generally becomes sole owner under a joint tenancy with right of survivorship (often subject to the 120-hour survival rule). Automatic survivorship changes who owns the property, but it usually does not erase a valid deed of trust lien. The next step is to confirm the deed’s exact vesting and record evidence of death/survivorship with the county Register of Deeds before closing.

Talk to a Real Estate Attorney

If a purchase involves a deceased owner, survivorship language in the deed, or a deed of trust that still appears in the chain of title, our firm has experienced attorneys who can help clarify who can sign and what must be done to deliver marketable title. 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: Real Estate Q&A Series

Author: Pierce Law

Pierce Law Group is a North Carolina law firm focused on probate administration, real estate partition matters, and surplus funds claims across North Carolina. We know these situations often come with stress, family dynamics, and time-sensitive decisions—so we prioritize clear communication, steady guidance, and a practical plan from day one. Our goal is to make a complicated process feel manageable, while protecting what matters most to you.