Dec292025
Partition Action Q&A Series

Is it legal and practical to sell only my share of the property to an investor, and what risks or downsides should I expect? – North Carolina

Short Answer

Yes. In North Carolina, a cotenant (such as a tenant in common) can usually sell, mortgage, or otherwise transfer only that cotenant’s undivided ownership share without the other owners signing. The buyer generally steps into the seller’s shoes as a new cotenant, which often creates practical problems: the investor may push for a partition action, the price offered may be discounted, and disagreements over possession, expenses, and sale timing can increase costs and conflict.

Understanding the Problem

In North Carolina partition matters, the central question is whether a person who co-owns real estate with someone else can sell only that person’s ownership share to an investor, and whether that move tends to solve the co-ownership problem or make it worse. The key decision point is whether transferring an “undivided interest” creates a workable long-term co-ownership situation, or whether it predictably leads to a forced sale or court involvement through partition.

Apply the Law

North Carolina law generally allows each cotenant to transfer that cotenant’s undivided interest without the joinder of the other cotenants. The transferee does not receive a specific room, side of the land, or designated portion; instead, the transferee becomes a new cotenant with the same type of shared possession rights the selling cotenant had. If the co-owners cannot agree on use or disposition, partition proceedings are typically handled through the Clerk of Superior Court, and if the property is sold through a court-ordered sale, statutory upset-bid procedures can extend the timeline.

Key Requirements

  • Only an undivided share transfers: The investor generally buys the selling owner’s percentage interest (whatever that interest is), not a particular “piece” of the property.
  • The investor becomes a cotenant: After the deed is recorded, the investor generally has co-ownership rights similar to other cotenants, including a right to shared possession (subject to practical limits and later court orders).
  • The transfer does not end the co-ownership dispute: If the co-owners still cannot agree, the dispute often moves toward partition (division in kind or a sale) through the court process.

What the Statutes Say

Analysis

Apply the Rule to the Facts: No specific facts were provided, so the practical outcome turns on what selling an undivided interest actually buys. If an investor purchases a cotenant’s undivided share, that investor generally becomes a new cotenant with shared possession rights, not a separate parcel. If the remaining co-owner does not want to live with (or negotiate with) an investor as a co-owner, the investor often seeks partition to convert the shared interest into cash.

Process & Timing

  1. Who files: The selling cotenant signs a deed to the investor; later, any cotenant (including the investor) may start a partition case. Where: Deeds are recorded with the Register of Deeds in the county where the property is located; partition proceedings are commonly handled through the Clerk of Superior Court in that county. What: A properly drafted and notarized deed for the share transfer; for partition, a partition petition/complaint and required notices/service documents. When: The deed transfer can happen as soon as a buyer is found; if a court-ordered sale occurs later, a reported sale may remain open to upset bids during a 10-day upset-bid period under North Carolina’s sale procedures.
  2. Next step: If the investor’s goal is to cash out quickly, the investor may request that the court partition the property (either by physical division if workable or by sale if not). Case timing varies by county, property type, and whether parties fight about value, credits, or sale method.
  3. Final step: If the court orders a sale, the sale must be reported and can be extended by successive upset bids. After the upset-bid period(s) end and any post-sale motions are resolved, the court can confirm the sale and proceeds are distributed, often after deductions and any required adjustments.

Exceptions & Pitfalls

  • Discounted price and limited buyer pool: Investors often pay less for a partial, undivided interest because they cannot control the property alone and may have to fund litigation to realize value.
  • Higher conflict risk (and faster march toward partition): A new investor-cotenant may press for partition sooner than a family member or longtime co-owner would, which can increase litigation costs and strain relationships.
  • Possession and “who gets to live there” fights: Tenants in common generally have shared possession rights, but shared possession does not mean shared expectations. Disputes over occupancy, access, and use can drive the parties to court.
  • Expense-sharing disputes: Co-ownership often triggers arguments about who should pay taxes, insurance, mortgage payments, and repairs, and whether one side should receive credits or reimbursements when the property is eventually sold or divided.
  • Title and closing problems: If there are existing liens, unclear ownership percentages, estate issues, or missing signatures in the chain of title, an investor may demand steep concessions or walk away, and the transfer can complicate later partition filings.
  • Sale timeline uncertainty: If partition leads to a court sale, the upset-bid procedure can extend the closing timeline because each upset bid can reopen the sale period under the statute.

Conclusion

North Carolina generally allows a cotenant to sell only that cotenant’s undivided share, and the investor usually becomes a new cotenant rather than an owner of a specific portion of the land. The main downside is practical: partial-interest buyers often discount the price and frequently push for partition to turn the share into cash. If a court-ordered sale follows, the upset-bid process can add time, including a 10-day window after a sale report or the last upset bid. A practical next step is to have counsel review the deed and the likely partition path before signing.

Talk to a Partition Action Attorney

If a co-owner relationship is breaking down and selling only a partial share is on the table, a Partition Action attorney can help evaluate whether a share-sale makes sense, what leverage it creates, and what timelines may follow if partition becomes necessary. 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.