Short Answer

In North Carolina, you can stop a tax foreclosure by paying the delinquent county taxes, then seek contribution from your co-owners. At the same time, you can petition the Clerk of Superior Court to compel the power-of-attorney agent to account and, if needed, limit or suspend the agent. If cooperation fails, a partition case can address unpaid taxes, mismanaged rents, and credits for your payments, or the court can appoint a receiver to stabilize the property.

Understanding the Problem

North Carolina co-owner asks: How do I prevent a county tax foreclosure when I own only a small share of rental properties, the parent holding most of the interest has advanced dementia, and the agent under a power of attorney has stopped paying taxes?

Apply the Law

Under North Carolina law, unpaid county property taxes can be foreclosed, but any owner or interested party can cure by paying the delinquency. A co-tenant who pays necessary charges like taxes may later seek contribution or a credit in partition. When a power-of-attorney agent controls the owner’s funds but fails to protect the property, an “interested person” can ask the Clerk of Superior Court to compel an accounting and limit or terminate the agent’s authority. If protection of income-producing property is urgent, a court can appoint a receiver to collect rents and pay expenses. Partition before the Clerk of Superior Court can resolve management deadlock, order a sale if needed, and award credits for taxes and necessary expenses.

Key Requirements

• Timely cure of taxes: Pay the county tax delinquency (including interest and costs) to halt foreclosure; keep proof of payment.
• POA oversight: File with the Clerk of Superior Court to compel the agent to account and, if warranted, to suspend or limit the agent’s authority.
• Partition remedies: As a co-tenant, file a partition proceeding to address unpaid taxes, require an accounting of rents, and request credits for taxes and necessary upkeep; a sale can be ordered if division or management won’t work.
• Receivership option: In urgent cases, ask Superior Court to appoint a receiver to collect rents, pay taxes, and preserve the property pending resolution.
• Forum and triggers: Clerk of Superior Court handles POA accountings and partition; Superior Court handles damages and receivers. Act before a tax sale is confirmed.

What the Statutes Say

• G.S. 105-374 (Tax foreclosure by civil action) – Counties may foreclose tax liens through a court action; owners can pay to cure before sale is confirmed.
• G.S. 105-375 (In rem tax foreclosure) – Provides a streamlined, in-rem foreclosure process; redemption by payment is allowed before deed/confirmation.
• G.S. 32C-1-116 (POA judicial relief) – Lets interested persons petition the Clerk to compel an agent’s accounting and to limit or terminate the agent’s authority.
• G.S. 32C-1-117 (Agent liability) – Sets remedies against agents for breach of fiduciary duty, including restoring property/value.

Analysis

Apply the Rule to the Facts: Because taxes are unpaid, your fastest way to prevent foreclosure is to pay the county the delinquent amount and document it. As a co-tenant, you can later seek contribution or a credit in partition. Given the parent’s dementia and the agent’s nonpayment, file with the Clerk to compel the agent to account and, if needed, suspend or limit their authority so taxes and upkeep are handled. If rents have collapsed and upkeep is neglected, a partition case can order an accounting of rents and award you credits; if management is untenable, the court can order a sale with taxes paid from proceeds.

Process & Timing

1. Who files: Any co-owner or other interested person. Where: County Tax Collector (to cure taxes) and Clerk of Superior Court (to compel POA accounting). What: Pay tax payoff; file an estate‑style petition to compel a POA accounting; use AOC-SP-100 (Special Proceedings Summons) to serve. When: Immediately—before a tax sale is confirmed.
2. Partition if needed: Who: Any co-tenant. Where: Clerk of Superior Court in the county where the property lies. What: Partition petition naming all co-owners and known lienholders; request accounting for rents and credits for taxes/necessary expenses; ask for interim management or sale if required. When: After tax cure/POA filing; timelines vary by county.
3. Emergency stabilization: Who: Any interested party. Where: Superior Court civil action. What: Motion to appoint a receiver to collect rents and pay taxes; or seek a temporary restraining order if funds are being misused. When: If taxes or rents are at immediate risk.

Exceptions & Pitfalls

• Partition cases must include all co-owners and known lienholders; missing a necessary party can make orders ineffective as to that person.
• The Clerk can compel a POA accounting and limit an agent, but money damages require a separate civil action in Superior Court.
• Keep receipts and payoff statements; contribution and partition credits for taxes and necessary expenses depend on proof.
• Tax foreclosure procedures and upset-bid steps vary by county and by foreclosure type; confirm details with the Tax Collector early.
• If the property qualifies as family “heirs’ property,” added partition steps and timelines may apply before a sale is ordered.

Talk to a Partition Action Attorney

If you’re dealing with looming tax foreclosure, a nonresponsive power-of-attorney agent, or co-owners who won’t cooperate, 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.