Partition Action Q&A Series

How can I clear a cloud on the title after a fraudulent claim by a real estate agent? – North Carolina

Short Answer

In North Carolina, you clear a cloud on title by filing a civil action in Superior Court to quiet title and/or for declaratory judgment, and asking the court to order the Register of Deeds to cancel the false recording. If the agent also filed a lis pendens, you can seek to have it cancelled. You may also add related claims (like slander of title) if you want damages, but the first goal is a court order that removes the cloud.

Understanding the Problem

In North Carolina, can a homeowner ask the court to remove a false recorded claim by a would-be buyer that is blocking a sale? Here, the sales contract with the real estate agent expired, and the agent then recorded an “interest” against the property that now prevents closing. The relief you need is a court order clearing title so you can sell.

Apply the Law

North Carolina law lets an owner bring a quiet title or declaratory judgment action in the county where the property sits to determine adverse claims and remove a cloud from title. “Cloud on title” means a recorded instrument or notice that appears to affect ownership but is invalid. The main forum is the Superior Court; the Clerk of Superior Court does not decide these civil damage disputes. If someone has recorded a lis pendens tied to a claim that doesn’t actually affect title, you can ask the court to cancel it. Time limits can apply to any damages claims you add, so act promptly.

Key Requirements

  • Standing as owner: You must own the property and be adversely affected by the recorded claim.
  • Adverse claim or cloud: There must be a recorded instrument or notice that appears to affect title (e.g., purported interest, memorandum, or lis pendens).
  • Invalidity: Show why the recorded claim is legally ineffective (for example, the contract expired or never created a transferable interest).
  • Proper forum: File a civil complaint in the Superior Court of the county where the property is located; ask for an order directing the Register of Deeds to cancel the recording.
  • Notice and recordation: Serve the adverse claimant; if you sue, record a notice of lis pendens to protect your pending action. Seek cancellation of any improper lis pendens the agent recorded.
  • Optional damages: If appropriate, add claims such as slander of title or unfair/deceptive practices; deadlines for these vary and are often shorter than title-clearing remedies.

What the Statutes Say

Analysis

Apply the Rule to the Facts: You are the owner, and the agent recorded a claim after the sales contract expired. That satisfies the “cloud” element and gives you standing. Because the contract lapsed, the agent’s recording likely created no valid interest, meeting the invalidity element. The correct step is a Superior Court action to quiet title and/or for declaratory relief, asking for an order directing the Register of Deeds to cancel the instrument and any lis pendens the agent filed.

Process & Timing

  1. Who files: The property owner. Where: Superior Court in the North Carolina county where the property is located. What: A civil complaint to quiet title and/or for declaratory judgment; attach the recorded instrument, and record a notice of lis pendens with the Register of Deeds referencing the lawsuit. When: File as soon as practical; damages claims (if added) can have short limitation periods.
  2. Serve the real estate agent and any other party named in the recorded document. The defendant typically has time to answer; courts may order mediation. If a lis pendens recorded by the agent is baseless, move for cancellation early.
  3. Ask for a final order declaring the agent has no interest, cancelling the instrument and any lis pendens, and authorizing the Register of Deeds to mark the book/page as cancelled. Record a certified copy of the order to clear the title record.

Exceptions & Pitfalls

  • If the agent filed a proper lawsuit for specific performance before the contract expired and properly recorded a lis pendens tied to that suit, the lis pendens may stand until the court resolves that case.
  • A lis pendens without a pending action affecting title is improper; move to cancel it. Conversely, if you file suit, record your own lis pendens to protect your position during the case.
  • Do not pay demands to “lift” a cloud without confirming legal validity; paying may not fix the title if other defects exist.
  • Be precise with service, book/page references, and recording a certified copy of the court’s order; missing a recording step can leave the cloud in place.

Conclusion

To clear a cloud recorded by a would-be buyer after the contract expired, file a quiet title and/or declaratory judgment action in the county’s Superior Court, prove the recording is invalid, and obtain an order directing the Register of Deeds to cancel it. Add a motion to cancel any improper lis pendens. Next step: prepare and file the complaint and record a lis pendens referencing your case to protect your title while the action is pending.

Talk to a Partition Action Attorney

If you’re dealing with a false recorded claim that’s blocking your sale, 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.