Jan152026
Partition Action Q&A Series

Can I recover my share of rent collected by a co-owner who has been renting out the inherited house without paying me? – North Carolina

Short Answer

Yes. Under North Carolina law, co-owners (cotenants) generally share proportionally in rents received from third parties, and a cotenant who received more than their share can be required to account to the other cotenants. In practice, this is often handled through an accounting claim (sometimes alongside a partition case) so the court can determine what rent came in, what legitimate property expenses were paid, and what amount should be paid out to each owner.

Understanding the Problem

In North Carolina, can an heir who became a co-owner of an inherited house recover a proportional share of rent when another co-owner has been controlling the property, renting it to tenants, and keeping the rental income? The decision point is whether the rent was received from third-party tenants while the property was owned together, and whether the co-owner who collected it paid the other co-owners their proportional shares. This question commonly comes up after a parent’s death when one heir takes over management and the other heirs are left out of decisions and payments.

Apply the Law

North Carolina treats most inherited co-ownership situations as cotenancy (often tenancy in common). Each cotenant has rights in the whole property, and when the property generates income from third parties (like tenants paying rent), the law generally requires the cotenants to share that income according to their ownership percentages. If one cotenant receives more than that cotenant’s share of rents and profits, another cotenant can bring an action for an accounting to recover the unpaid share.

Key Requirements

  • Cotenancy (shared ownership): The parties must be co-owners of the property (for example, heirs who took title under a will).
  • Rents or profits received from third parties: The claim focuses on money actually received from others (such as tenants), not merely the value of one cotenant living there.
  • Disproportionate receipt: One cotenant must have received more than that cotenant’s proportional share and failed to distribute the remainder to the other cotenants.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the heirs became co-owners under a will, and one co-owner has been renting the house to tenants and not sharing the rental income. If rent is being paid by third-party tenants and one cotenant is keeping more than that cotenant’s proportional share, North Carolina law generally allows the other cotenants to pursue an accounting to recover their shares. In most real cases, the amount owed depends on proof of the rent received and legitimate property expenses (for example, taxes, insurance, necessary repairs) that may be credited before the net rent is divided by ownership percentage.

Process & Timing

  1. Who files: The cotenant who is not being paid. Where: North Carolina District Court or Superior Court in the county where the property is located (venue and division can depend on the claims and local practice). What: A civil complaint requesting an accounting of rents and profits (and, when appropriate, a partition action to force a sale or division and to resolve credits/debits between cotenants). When: As soon as practical after learning rent is being collected and not shared; waiting can make records harder to obtain and disputes harder to prove.
  2. Financial proof and credits: The case typically turns on documents—leases, rent ledgers, bank deposits, repair invoices, insurance and tax bills, and proof of who paid what. The co-owner collecting rent often argues for credits for legitimate carrying costs and necessary repairs; the court can sort out what is properly credited and what is not.
  3. Resolution: If the court finds rent was collected and not properly shared, it can order an accounting and payment of the unpaid share. If a partition claim is included, the court can also address how proceeds are divided and how reimbursements/credits are handled as part of the partition process.

Exceptions & Pitfalls

  • Confusing “rent collected” with “living there”: The strongest statutory accounting claim is for rents and profits received from third parties. Separate rules can apply when a cotenant simply occupies the property rather than renting it out.
  • Credits for expenses: Even when rent must be shared, the collecting cotenant may seek credits for items like taxes, insurance, and necessary repairs. Missing receipts and incomplete records often drive disputes.
  • Informal agreements and mixed messages: Texts or emails that look like permission to keep rent in exchange for paying expenses can change the analysis. North Carolina law allows cotenants to modify default rules by agreement.
  • Title and ownership-share confusion: If the deed, estate paperwork, or heirship is unclear, the first fight may be “who owns what percentage,” because the rent split follows ownership percentages. For more on identifying owners before filing, see how to figure out who all the co-owners or heirs are.

Conclusion

Yes—North Carolina law generally requires cotenants to share rents received from third-party tenants in proportion to their ownership interests, and it allows a cotenant to sue for an accounting when another cotenant has collected more than their share. The amount recoverable usually depends on proof of rent received and proper credits for legitimate property expenses. A practical next step is to file an accounting claim (often paired with a partition case) in the county where the property is located to force disclosure of rent records and determine the correct distribution.

Talk to a Partition Action Attorney

If you’re dealing with a co-owner who is renting out inherited property and not sharing the income, our firm has experienced attorneys who can help explain the accounting and partition options and the timelines that may apply. 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.