Feb282026
Partition Action Q&A Series

Do we have to let a co-owner live in the house rent-free, and can we require them to contribute to taxes, insurance, and upkeep? – North Carolina

Short Answer

In North Carolina, a co-owner generally has the same right as the other co-owners to possess and live in the property, so one co-owner living there is not automatically required to pay “rent” to the others. However, co-owners can often seek reimbursement (contribution) for certain shared expenses—especially property taxes, homeowner’s insurance, and necessary repairs—either by agreement or through a partition case where the court can adjust each owner’s share of the sale proceeds. The details often turn on whether the occupant had exclusive possession and what costs were actually paid and documented.

Understanding the Problem

In North Carolina, when siblings inherit a house as co-owners and one co-owner moves in after the decedent’s death, the practical question becomes whether the other co-owners must allow that occupancy without rent and, if so, whether the occupying co-owner must still share the financial burdens of ownership. The single decision point is whether the situation can be managed through a written cost-sharing and occupancy agreement, or whether the dispute needs to be resolved through a partition action that forces a sale and divides the proceeds with court-ordered adjustments.

Apply the Law

North Carolina treats most inherited co-ownership as a form of cotenancy (often “tenants in common”). As a baseline, each cotenant has a right to possess the whole property, so an occupying cotenant is not automatically a “tenant” owing rent to the other owners. But North Carolina law also recognizes that cotenants may be entitled to reimbursement for certain “carrying costs” and other payments that preserve the property, and those claims are commonly handled as credits and setoffs in a partition case filed in the county where the property sits.

Key Requirements

  • Right of possession vs. rent: A co-owner’s right to live in the home usually exists without paying rent to the other co-owners unless there is an agreement or facts that legally change the analysis (for example, conduct that effectively excludes the other owners).
  • Contribution for shared costs: Co-owners can often seek reimbursement for payments that preserve the property (such as taxes, insurance, and necessary repairs), especially when the issue is raised inside a partition action and supported by proof of payment.
  • Documented expenses and timing: Courts typically require clear records (bills, receipts, canceled checks) and will apply statutory limits and rules (including limits tied to “exclusive possession” and time windows for certain taxes) when adjusting shares.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the home passed to multiple children as co-owners, and one co-owner has been living in the property while refusing to sign an agreement and not paying rent. Under North Carolina’s general cotenancy rules, living in the home is not automatically “wrongful,” so the non-occupying co-owners typically cannot simply demand rent as if the occupant were a tenant. But the concerns about taxes, insurance, upkeep, and potential damage are real ownership issues, and North Carolina partition law provides a structured way to seek credits and setoffs for documented carrying costs and certain repairs when the property is sold and proceeds are divided.

If the occupying co-owner is paying nothing and the other co-owners are covering property taxes and insurance to prevent loss of coverage or a tax problem, those paying co-owners may be able to seek contribution/credits in a partition case under the carrying-cost rules. If the occupying co-owner is the one paying those items, that co-owner may also try to claim credits—although North Carolina law can limit reimbursement for certain expenses during periods of exclusive possession, depending on the type of expense and the circumstances.

Process & Timing

  1. Who files: Any co-owner. Where: The Clerk of Superior Court in the North Carolina county where the property is located. What: A partition petition (and, when appropriate, requests for a partition sale and for contribution/credit adjustments). When: There is no single universal “must file by” deadline to start partition, but delays can increase carrying costs and disputes; property-tax reimbursement in a partition proceeding is limited by statute to taxes paid during the 10 years before the partition petition is filed.
  2. Accounting and credits: During the case, the parties typically exchange information about payments made (taxes, insurance, repairs) and any income received from the property (for example, rent from third parties). The court can order equitable adjustments so the final distribution reflects proven contributions and offsets.
  3. Outcome: If the court orders a sale, the property is sold and the net proceeds are divided among the co-owners after costs and any court-ordered adjustments for carrying costs, repairs, improvements (as allowed), and other credits/setoffs recognized in the proceeding.

Exceptions & Pitfalls

  • Rent is not automatic: A demand for “rent” from an occupying co-owner often fails unless the facts support a recognized basis to charge for exclusive use (for example, conduct that effectively excludes other co-owners) or there is a written agreement setting rent or occupancy terms.
  • Exclusive possession can change reimbursement: North Carolina statutes include limits on reimbursement for certain repairs and interest payments during periods of exclusive possession. The details matter, so the claim should be framed carefully and supported with records.
  • Necessary repairs vs. improvements: Courts often treat “necessary repairs” (to preserve the property) differently from “improvements” (upgrades). Improvements may be credited only in limited ways in partition, and the measure can be tied to value added rather than dollars spent.
  • Poor documentation: Without receipts, invoices, proof of payment, and clear dates, a court may reduce or deny requested credits for taxes, insurance, and upkeep.
  • Third-party rent issues: If the occupying co-owner rents rooms or the whole property to third parties and keeps the money, North Carolina law allows other co-owners to seek an accounting for their proportional share of those rents and profits.

For more on how North Carolina courts handle property-condition and expense disputes between co-owners, see unfinished repairs or unpaid utilities that reduce property value. Related timing and occupancy issues can also come up when both co-owners still live in the property.

Conclusion

In North Carolina, co-owners usually do not have to treat an occupying co-owner as a renter, so “rent-free” occupancy is often allowed unless an agreement or legally significant exclusion changes the analysis. But co-owners can often require fair financial treatment through contribution claims for carrying costs like property taxes, homeowner’s insurance, and necessary repairs—most cleanly handled in a partition case where the court can adjust each owner’s share of the net proceeds. A practical next step is to file a partition petition with the Clerk of Superior Court in the county where the property is located, keeping in mind the 10-year statutory limit on tax reimbursement claims in the partition proceeding.

Talk to a Partition Action Attorney

If a co-owner is living in the house without an agreement and the other owners are worried about taxes, insurance, upkeep, or a buyout versus a forced sale, our firm has experienced attorneys who can help explain options and timelines under North Carolina partition law. 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: 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.