Short Answer

In North Carolina, you can negotiate a written “move-out” or “rent-back” agreement as part of your partition settlement and buyout. Typical terms cover a fixed move-out date, short-term occupancy (with rent or use-and-occupancy fees), a security deposit or damage holdback, access rules, and a signed release. To make the deal enforceable, reduce it to a signed settlement and incorporate it into a consent order or dismissal in the partition case.

Understanding the Problem

You are a North Carolina co-owner in a partition action and will mediate a buyout. You live in an apartment the other co-owner owns and need clear, enforceable terms for how long you can stay or when you must vacate after settlement. This page explains what you can ask for and how to lock those terms in at mediation before the Clerk of Superior Court.

Apply the Law

North Carolina allows partition cases and related disputes to be resolved at mediation, and settled terms can be enforced if put in writing and signed. In a buyout, parties often add an occupancy clause that functions like a short lease or license: it sets a firm move-out date, any rent or fee for staying, a deposit or holdback for damage, and access/insurance obligations. The forum is the Clerk of Superior Court in the county where the property sits. Mediation is typically ordered by the court with a completion deadline; when the parties settle, they usually file a consent order or a voluntary dismissal with the settlement attached.

Key Requirements

• Written, signed terms: Put all stay-or-vacate terms into the mediated agreement before leaving mediation; incorporate into a consent order or dismissal.
• Clear possession timeline: State an exact move-out date or a short, fixed occupancy period after closing, with holdover consequences.
• Money terms: Specify any rent/use-and-occupancy fee, deposit/holdback, utilities responsibility, and prorations.
• Condition and access: Define maintenance, repairs, insurance, inspection/access rights, and final walkthrough.
• Releases/indemnities: Address tax/“business partner” issues and mutual releases tied to payment and surrender of possession.
• Enforcement path: State that breach allows court enforcement in the partition file and summary ejectment if applicable.

What the Statutes Say

• N.C. Gen. Stat. § 7A-38.3B (Mediation before the Clerk) – Clerks may order mediation in matters within their jurisdiction; settlements reached there are documented and reported.
• N.C. Gen. Stat. § 7A-38.1 (Mediated settlement conferences) – Mediated agreements must be in writing and signed to be enforceable and may be entered as consent judgments.
• N.C. Gen. Stat. § 42-14 (Termination notice) – Sets baseline notice rules for residential tenancies if a lease is used for short-term occupancy.
• N.C. Gen. Stat. § 42-51 (Security deposits) – Limits and regulates residential security deposits and permitted uses if a lease is part of the deal.

Analysis

Apply the Rule to the Facts: Because you are mediating a buyout in a North Carolina partition case, you can include a written, signed occupancy clause in the mediated settlement. Tie your move-out date to closing, set any short-term rent or use fee, and include a refundable holdback for damage. Given the co-owner listed you as a business partner on tax filings, include mutual releases and an indemnity addressing tax and liability exposures. File a consent order or dismissal incorporating these terms so they are enforceable.

Process & Timing

1. Who files: Either party’s attorney. Where: Clerk of Superior Court in the North Carolina county where the property is located (existing partition file). What: A written mediated settlement agreement (AOC-DRC-15 or AOC-DRC-16) and a consent order or voluntary dismissal referencing the settlement; mediation orders often use AOC-G-301. When: Sign the settlement at mediation; file the closing document promptly—mediator reports typically set a deadline (often within about 10 days or by the mediation completion date, whichever is longer).
2. After filing, schedule closing for the buyout and exchange payments per the settlement. Occupancy terms start at closing and run only for the agreed period.
3. On move-out, conduct a walkthrough, settle any deposit/holdback with an itemized statement, and file a dismissal if not already filed.

Exceptions & Pitfalls

• Not in writing or unsigned at mediation: oral deals are hard to enforce. Get signatures before adjournment.
• Vague possession terms: without a firm date and holdover remedy, disputes arise and eviction risk increases.
• Security deposit traps: if you structure occupancy as a lease, follow residential deposit limits and refund rules.
• Access and insurance gaps: specify entry rights, utility responsibility, and renter’s insurance during any stay period.
• Settlement paperwork lag: failure to file the consent order/dismissal can delay enforcement and closing.
• Trust account disbursement: authorize your attorney in writing to deduct agreed fees and ask for an itemized disbursement statement before funds are released.

Talk to a Partition Action Attorney

If you’re dealing with a partition buyout and need clear stay-or-vacate terms tied to settlement, 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.