If my relative and I inherited a house together, what is the best way to sell it when one co-owner is under guardianship? – North Carolina

Short Answer

In North Carolina, the cleanest way to sell an inherited house when one co-owner is under guardianship is usually to have a properly appointed guardian of the estate (or a court-appointed special fiduciary for a single transaction) obtain a court order authorizing the sale of the person’s interest. A guardian of the person alone generally cannot sign real estate sale documents. The sale is typically handled as a special proceeding before the Clerk of Superior Court in the county where the property is located, with required court oversight and, in many cases, judge approval.

Understanding the Problem

In North Carolina guardianship cases, the key question is: can a co-owned inherited house be sold when one owner is an incompetent adult and only a guardian of the person is currently in place? The decision point is whether the person under guardianship has someone with legal authority over property and money (not just health and living decisions) who can sign a contract and deed, receive sale proceeds, and follow court-required safeguards. The forum that controls that authority is typically the Clerk of Superior Court handling the guardianship and the special proceeding tied to the real estate.

Apply the Law

North Carolina separates guardianship authority into different roles. A guardian of the person focuses on care and personal decisions. A guardian of the estate (or a general guardian) manages assets and finances. When the person under guardianship owns real estate (including an inherited co-ownership interest), a sale generally requires a verified petition and a court order authorizing the transaction, because the court must find the sale is necessary or that it would materially promote the ward’s interest. The proceeding is filed in the county where the land is located, and the sale process follows North Carolina’s special proceeding rules for judicial sales.

Key Requirements

  • Proper authority over the estate: The person signing for the co-owner under guardianship must have authority over property (typically a guardian of the estate or general guardian), not only authority over personal care.
  • Court approval to sell real estate: The court must authorize the sale through a special proceeding, based on proof the sale benefits the ward or is needed for support, debts, or other statutory reasons.
  • Compliance with judicial sale procedure and safeguards: The sale must be conducted under the required process (often including court oversight, possible notice requirements, and handling of proceeds through the guardianship estate, including bond issues when proceeds are received).

What the Statutes Say

Analysis

Apply the Rule to the Facts: The facts describe an adult relative with longstanding mental health conditions and an existing guardianship where a former spouse serves as guardian of the person. If the inherited house is co-owned and a sale is the goal, the guardian-of-the-person role alone is usually not the right tool because it focuses on care decisions, not signing deeds and managing sale proceeds. Modifying the case so the same individual is appointed guardian of the estate (or seeking a single-transaction authorization) is often the practical path to allow a court-supervised sale and to protect the relative from poor spending decisions and exploitation once proceeds are received.

Process & Timing

  1. Who files: Typically the guardian of the estate (once appointed) or another interested person through counsel. Where: The Clerk of Superior Court in the county where the house (or any part of it) is located for the sale proceeding; the guardianship remains under the clerk’s supervision. What: A verified petition requesting authority to sell the ward’s real estate interest and proposed terms; if no guardian of the estate exists yet, a petition may be needed to appoint one (or to request a single-transaction protective order). When: Before listing the property for sale or signing a contract on behalf of the ward’s interest, because the authority to convey must be in place first.
  2. Court review and required findings: The clerk reviews evidence and must be satisfied the sale benefits the ward (for example, it materially promotes the ward’s interest or is needed for support/maintenance). The clerk may require notice to family members or other parties and may set specific sale terms.
  3. Sale mechanics and closing: The sale is conducted under the judicial sale procedures referenced in the statute. After the court authorizes the sale and any required approvals occur, the guardian (or court-appointed fiduciary) signs closing documents for the ward’s share, and the ward’s net proceeds are handled through the guardianship estate with court-required safeguards (often including bond adjustments and later accounting to the clerk).

Exceptions & Pitfalls

  • Using the wrong guardian role: A guardian of the person generally does not have authority to sell real estate. Trying to close without the correct appointment and order can delay or derail the sale.
  • Skipping the “single transaction” option when appropriate: In some situations, a court-approved single protective arrangement can be a more targeted solution than a full guardianship-of-the-estate appointment, but it still requires court process and safeguards.
  • Bond and proceeds handling: When real estate is sold, the court may require an increased bond before the guardian receives proceeds, and the guardian must treat the funds as part of the ward’s estate and report/account as required.
  • County and judge-approval issues: These matters are handled as special proceedings, and judge approval may be required. Local practice can affect scheduling, notice, and what documentation the clerk expects.

For readers dealing with related co-ownership issues, it can also help to understand how a guardian can handle decisions about an inherited home and, when co-owners cannot agree, how a court process may resolve disagreements about selling.

Conclusion

In North Carolina, the best way to sell a jointly inherited house when one co-owner is under guardianship is usually to ensure there is a guardian of the estate (or a court-approved single-transaction fiduciary) and then file a verified petition in the Clerk of Superior Court where the property is located for an order authorizing the sale. The key threshold is showing the sale benefits the ward or is otherwise legally justified. The most important next step is to obtain the court’s sale authority before signing a contract or deed for the ward’s share.

Talk to a Guardianship Attorney

If you’re dealing with selling a co-owned inherited house where one owner is under guardianship, our firm has experienced attorneys who can help explain the court process, required filings, and timing. 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: Guardianship 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.