Short Answer

Yes. In North Carolina, any co-owner can file a partition proceeding. If the land cannot be fairly divided, the Clerk of Superior Court can order a sale and divide the net proceeds by ownership shares. Sale proceeds first pay costs and valid liens (including delinquent property taxes), then the remainder is distributed, with adjustments for taxes, necessary repairs, and rents when appropriate.

Understanding the Problem

In North Carolina, can a co-owner start a court process to sell jointly owned rental property when taxes are not being paid, so the proceeds cover the taxes and are then split? Here, you own a small interest, taxes have gone unpaid, and upkeep has lagged.

Apply the Law

North Carolina law gives any tenant in common the right to partition. You begin a special proceeding with the Clerk of Superior Court in the county where the property sits. If a fair, in-kind split is not practical or would cause substantial injury to the owners, the clerk can order a sale in lieu of partition. A court-appointed commissioner conducts a judicial sale. Proceeds pay sale costs and valid liens (like property taxes) first; the remainder is divided by ownership shares, with credits or charges for necessary expenses, taxes, and net rents as justified by the record. Judicial sales include a 10-day upset bid period.

Key Requirements

• Co-ownership: You must hold title with others (usually as tenants in common).
• Right to partition: Any co-owner may file; no consent from others is required.
• Sale in lieu of partition: If division on the ground is impractical or harms value, the clerk can order a sale.
• Judicial sale process: A commissioner sells the property under judicial-sale rules with upset bids.
• Distribution rules: Proceeds pay costs and liens (including delinquent taxes) before net shares are distributed; courts can account for necessary expenses and rents.
• Forum and oversight: Filed with the Clerk of Superior Court where the land is located; if a minor or incompetent owns an interest, additional protections apply and a judge may need to confirm the sale.

What the Statutes Say

• North Carolina Partition Statutes (Chapter 46A) – Sets the rules for partition and sale in lieu of partition before the clerk.
• G.S. 1-339.25 (Upset bids in public judicial sales) – Allows 10-day upset bids after a public sale.
• G.S. 1-339.36 (Upset bids in private judicial sales) – Allows 10-day upset bids after a private sale.
• G.S. 32C-1-117 (Agent liability under a power of attorney) – Provides remedies to address a POA agent’s breach, including suspension or removal.

Analysis

Apply the Rule to the Facts: You are a co-owner, so you can file for partition. Given unpaid taxes and deteriorating condition, a court is likely to consider sale in lieu of partition if a fair, physical division is not feasible. At sale, past-due property taxes and sale costs come off the top; then the net is split by ownership shares, with potential credits for necessary expenses and appropriate rent accounting.

Process & Timing

1. Who files: Any co-owner. Where: Clerk of Superior Court in the North Carolina county where the property is located. What: A verified petition for partition requesting sale in lieu of partition and appointment of a commissioner. When: No statute of limitations; timing is driven by docketing and sale scheduling.
2. After service on all co-owners (and notice to interested lienholders if appropriate), the clerk decides whether to order partition in kind or a sale; for a sale, the clerk appoints a commissioner and sets sale terms under judicial-sale rules. Expect a 10-day upset bid period after each reported high bid; multiple rounds can extend timelines.
3. The clerk confirms the sale when upset bids end. The commissioner pays costs and liens (including delinquent property taxes) from the proceeds, then distributes the net to co-owners per shares, making adjustment entries for proven necessary expenses and net rents. If any party is a minor or incompetent, additional safeguards apply, and a Superior Court judge may need to confirm the sale.

Exceptions & Pitfalls

• Heirs’ property: If the land is family-owned across generations, special partition rules may apply that can affect valuation, buyout options, and sale method.
• Incompetency/POA issues: If a co-owner has advanced dementia, the clerk may appoint a guardian ad litem and, if needed, a guardian of the estate. A judge may need to confirm any sale involving a minor or incompetent interest.
• Agent mismanagement: If an agent under a power of attorney stopped paying taxes, a separate proceeding can compel an accounting or seek suspension/removal to stop further waste.
• Accounting adjustments: Keep records of taxes, insurance, emergency repairs, and rents. Poor documentation can reduce or defeat contribution or set-off claims.
• Notice and parties: Be sure all co-owners are properly served. Unknown or unreachable parties may require a guardian ad litem and can delay orders.

Talk to a Partition Action Attorney

If you’re dealing with co-owned property where taxes aren’t being paid and value is at risk, our firm has experienced attorneys who can help you understand your options and 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.