Dec32025
Partition Action Q&A Series

If the deed lists only my partner but I funded the purchase, do I still have ownership or repayment rights when the home is sold? – North Carolina

Short Answer

Under North Carolina law, legal ownership usually follows the name on the deed, but courts can sometimes recognize financial or equitable rights for a non-titled partner who paid the purchase money or carrying costs. Those rights are not automatic. They may be pursued through claims such as resulting or constructive trust, contribution or reimbursement in a partition action (if treated as cotenants), or a separate equity suit tied to the sale proceeds. The outcome turns on the deed, the parties’ intent, payment history, and timing.

Understanding the Problem

The question here is whether, in North Carolina, a non‑married partner who funded the down payment and all mortgage payments still has an ownership or repayment claim when a home is titled only in the other partner’s name and is now being sold. The concern is whether the titled partner can demand an equal split of sale proceeds, including the down payment, despite not contributing funds. The issue sits at the intersection of property title, equitable ownership, and partition-style remedies, and it focuses on one key decision point: can a court recognize and protect the funding partner’s financial contributions even though the deed lists only the other partner?

Apply the Law

North Carolina’s starting point is that the person named on the deed holds legal title. However, courts also apply equitable principles in disputes between cohabiting partners or informal co‑owners. In some cases, the funding partner can ask the court to treat the titled partner as holding all or part of the property (or the sale proceeds) in trust, or to adjust shares in a partition-style proceeding based on carrying costs such as mortgage payments, taxes, insurance, and necessary repairs.

Key Requirements

  • Financial contribution to acquisition or carrying costs: The funding partner must show clear payments toward the down payment, mortgage principal and interest, property taxes, insurance, or major repairs or improvements.
  • Intent or understanding about ownership or repayment: Evidence that the payments were meant to buy an ownership stake or be repaid, rather than a gift, supports a claim for an equitable interest or reimbursement.
  • Proper legal vehicle and timing: The funding partner must bring the claim in a suitable proceeding—often a partition-style action (if there is a recognized cotenancy interest) or a separate equity action tied to the sale—and must do so before proceeds are irreversibly distributed.

What the Statutes Say

Analysis

Apply the Rule to the Facts: In the stated scenario, the deed lists only the partner, which means that partner currently holds legal title. However, the other partner claims to have paid the entire down payment and all mortgage payments, which are classic “carrying costs” and acquisition funds. If that funding was not meant as a gift, a North Carolina court could, in the right lawsuit, consider imposing an equitable interest in the property or its proceeds for the funding partner, or at least award contribution or reimbursement tied to those documented payments. How the court characterizes the relationship (true cotenancy vs. equitable-only interest) will affect whether a formal partition action is available or whether a separate equity claim, such as a trust or accounting claim, is more appropriate.

Process & Timing

  1. Who files: Typically the funding partner. Where: Superior Court in the North Carolina county where the property sits. What: Either (a) a partition petition under Chapter 46A, if there is a colorable cotenant interest to assert, often combined with a request for contribution under the carrying‑cost and reimbursement statutes, or (b) a separate civil complaint seeking an equitable interest in the property or in the sale proceeds (such as a resulting or constructive trust, unjust enrichment, or accounting). When: Normally before or contemporaneously with the sale or distribution of net proceeds; delay can make recovery harder, especially once funds are disbursed to third parties.
  2. After filing, the court requires proper service on the titled partner and any other interested parties (such as lienholders). The responding partner can admit or deny the alleged contributions and intent. The court may hold hearings and, in a partition case, may appoint commissioners or order a sale. In an equity case, the court will typically review bank records, closing documents, and testimony on the parties’ understanding.
  3. In a partition sale, the court supervises the sale and then allocates net proceeds. At that stage, the funding partner can request credits or reimbursements for documented carrying costs and, depending on the evidence, an unequal split of proceeds. In a non‑partition equity case, the court can order that part of the sale proceeds be paid directly to the funding partner before the remainder goes to the titled partner.

Exceptions & Pitfalls

  • If the court finds the funding partner intended the down payment and mortgage payments as a gift, any claim to ownership or repayment may fail.
  • Keeping all payments in cash or without clear records makes it harder to prove contribution; bank statements, closing disclosures, and mortgage histories are often critical.
  • If there is no recognized cotenancy interest—because the deed is solely in one name and the court declines to find an equitable ownership share—formal partition statutes may not apply, and recovery must proceed through other equity theories.
  • Allowing proceeds to be paid out and then waiting too long to sue can make practical recovery difficult, even if a legal claim still exists.

Conclusion

In North Carolina, a name on the deed controls legal title, but a partner who paid the down payment and carrying costs may still have an equitable claim to ownership or repayment if those payments were not intended as a gift. Courts can, in the right case, adjust how sale proceeds are divided or order contribution for mortgage, tax, and similar expenses. The key next step is to file an appropriate partition-style or equity action in superior court, asserting those contribution and trust-based rights before sale proceeds are distributed.

Talk to a Partition Action Attorney

If a home in North Carolina is titled only in a partner’s name but one partner supplied most or all of the money, our firm has experienced attorneys who can help explain equitable and partition options before and after a sale. 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: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.