Can we avoid going to court by doing a private sale or settlement agreement with the other co-owner? – North Carolina

Short Answer

Yes. In North Carolina, co-owners can often avoid a partition lawsuit if they can reach a written agreement to sell the property (or for one co-owner to buy out the other) and then follow through with the closing. The key is getting everyone with an ownership interest to sign the necessary documents, including a deed, and to agree on the price, timing, and how costs and proceeds will be handled. If agreement is not realistic or breaks down, a partition case is the court process that can force a resolution.

Understanding the Problem

In North Carolina, when two people co-own a home and one wants to sell, the main question is whether the property can be sold without filing a partition action. The decision point is whether the other co-owner will voluntarily cooperate with a private sale or a written settlement that sets the terms for a sale or buyout. If cooperation is not available, the alternative is asking the court to order a partition method that ends the co-ownership.

Apply the Law

North Carolina law allows co-owners to end a co-ownership either by agreement (private sale, buyout, or other written settlement) or through a partition proceeding filed in the Superior Court division (typically handled by the Clerk of Superior Court). In a partition case, the court must choose a method of partition, which can include an actual division of the land or a court-ordered sale, depending on what fits the property and the legal requirements. If the court orders a sale, a commissioner is commonly appointed to conduct the sale process under court supervision.

Key Requirements

All owners must agree and sign: A private sale or settlement only works if every person with an ownership interest signs the contract/deed and any settlement documents needed to close.
Clear written terms: The agreement should spell out the sales method (list vs. direct buyer), price strategy, deadlines, possession, repairs, and how expenses and net proceeds will be handled.
A workable back-up plan: If one party can stall, the agreement should include enforceable deadlines and a defined next step (often, filing or continuing a partition case) if cooperation stops.

What the Statutes Say

N.C. Gen. Stat. § 46A-26 (Methods of partition) – Requires the court in a partition proceeding to choose a method of partition (which can include a partition sale) and provides that the court cannot force a cotenant to remain in co-ownership over that cotenant’s objection.
N.C. Gen. Stat. § 46A-76 (Sale procedure) – Explains that a partition sale follows specific court-supervised sale procedures and allows the court to appoint a commissioner to handle the sale.

Analysis

Apply the Rule to the Facts: Here, one co-owner wants to sell a jointly owned home, but the sale depends on the other co-owner’s cooperation unless a court orders a partition method. A private sale or settlement can avoid court if both co-owners sign a written plan that covers the listing or buyer, the timeline, and how proceeds and expenses will be handled through closing. If the other co-owner will not commit in writing or repeatedly delays, the partition petition and service process becomes the practical way to move the property toward a sale with court oversight and a commissioner if needed.

Process & Timing

Who signs: All co-owners on title (and any other required signers identified by the closing attorney/title work). Where: The sale closes through a North Carolina real estate closing (not the courthouse) if it is truly voluntary. What: A written settlement agreement (if used), a listing agreement or purchase contract, and a deed at closing. When: The timeline is whatever the parties agree to in writing (common pressure points are listing date, contract deadline, and closing date).
If agreement fails: A partition case is filed in the county where the property is located, and the other co-owner is served and given a standard time to respond under North Carolina civil procedure rules (deadlines can vary by how service is completed and should be confirmed for the specific case).
If the court orders a sale: The court may appoint a commissioner to conduct the sale process under the required procedures, and the sale typically proceeds under court supervision through confirmation steps rather than a purely private closing timeline.

Exceptions & Pitfalls

One co-owner “agrees” but won’t sign: Verbal agreements and text-message understandings often fall apart at the contract or deed stage; a private sale usually requires signatures to be enforceable and to close.
Unclear money terms: Disputes commonly arise over mortgage payments, taxes, insurance, repairs, and credits at closing. A settlement should address who pays what while the home is being sold and how those items affect the final split.
Title and lien surprises: Even if co-owners agree, title issues or liens can delay or block closing; early deed and title review helps avoid last-minute breakdowns.

Conclusion

In North Carolina, co-owners can often avoid court by signing a clear written settlement that requires cooperation for a private sale (or a buyout) and then completing the closing documents. If the other co-owner will not sign, will not follow deadlines, or will not cooperate with the sale process, a partition filing in the county where the property sits is the formal way to ask the court to choose a partition method and, if needed, appoint a commissioner to handle a court-ordered sale. The next step is to put the sale terms in writing with firm deadlines.

Talk to a Partition Action Attorney

If a co-owner will not cooperate with a sale or a written settlement, our firm has experienced attorneys who can help explain the partition process, prepare the petition, and map out realistic timelines. 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.