Short Answer

In North Carolina, once a person dies, title to their real property vests in the heirs, so heirs (as new owners) are generally responsible for ongoing property taxes after death. A personal representative may pay taxes from the estate only when keeping taxes current is necessary for administration and the Clerk authorizes it or the representative has taken possession of the land for estate purposes. In a partition-by-sale, delinquent taxes are typically paid from the sale proceeds before any distributions to heirs.

Understanding the Problem

In North Carolina, can an heir who is a co-administrator be required to pay property taxes on a farm that passed by intestacy, while probate is still open and a partition sale is planned? One co-administrator will not agree to an appraisal or sale, and the estate has already paid taxes through the current year.

Apply the Law

Under North Carolina law, real property usually passes directly to heirs at death. That means heirs step into ownership and the ongoing tax responsibility. A personal representative can step in to manage real property (and pay necessary carrying costs like taxes) when doing so is in the estate’s best interest and the Clerk authorizes possession or payment as an estate expense. If the heirs pursue a partition by sale, the court-appointed commissioner customarily uses sale proceeds first to pay expenses of sale and any delinquent county taxes before distributing net proceeds to co-owners.

Key Requirements

• Vesting at death: Title to real property vests in the heirs at death, which places ongoing tax duties on them unless the estate is lawfully administering the land.
• PR authority to manage/pay: The personal representative may petition the Clerk of Superior Court to take possession or to authorize payment of necessary expenses, including taxes, when needed to preserve or sell the property for the estate.
• Partition sale allocation: In a partition-by-sale, delinquent county taxes and sale costs are paid from the gross proceeds before any heir receives their share; co-owners who advanced taxes may seek credits in the distribution.
• Forum and timing: Estate-related requests go to the Clerk of Superior Court in the county of administration; partition is a special proceeding before the Clerk in the county where the land lies.
• Tax lien/interest: Property tax liens attach each January 1; taxes become delinquent after early January of the following year, when interest begins to accrue.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-15-2 (Vesting of real property) – Real property vests in heirs at death (intestate) or devisees (testate).
• North Carolina Gen. Stat. § 28A-13-3 (Powers of personal representative) – PR may take possession/control of real property when in the estate’s best interest.
• North Carolina Gen. Stat. § 105-355 (Property tax lien) – Ad valorem tax liens attach to real property on January 1 of the tax year.
• North Carolina Gen. Stat. § 105-360 (Interest on delinquent taxes) – Interest begins accruing when taxes become delinquent after early January.

Analysis

Apply the Rule to the Facts: Because the farm passed by intestacy, title vested in the heirs at death, so ongoing taxes are the heirs’ responsibility. The estate’s payment of the current year’s taxes is consistent with preserving the asset, but future payments from estate funds should be supported by Clerk authorization or PR possession. If a partition by sale moves forward, any unpaid county taxes will be paid from sale proceeds before distribution, and a co-owner who advanced taxes can request a credit at distribution.

Process & Timing

1. Who files: Any cotenant (heir). Where: Clerk of Superior Court in the county where the land is located. What: Verified petition for partition by sale requesting a sale of the entire tract. When: File when co-owners cannot agree on sale; allow time for service on all heirs and the appointment of a commissioner.
2. The Clerk appoints a commissioner; the sale is conducted under judicial sale procedures with an upset-bid period. Expect several months, varying by county and bidding activity.
3. At closing, the commissioner pays costs of sale and any delinquent property taxes from gross proceeds, then distributes net proceeds to cotenants by their shares, accounting for proven tax advances.

Exceptions & Pitfalls

• If the personal representative needs to pay taxes from estate funds, obtain Clerk authorization or take possession of the real property for estate purposes to avoid objections to unauthorized disbursements.
• One cotenant paying all taxes should keep clear records; contribution or credits are easier to secure at partition with receipts and proof of payment.
• Ensure all heirs (including unknown or minor heirs) are properly served in the partition; service defects can delay the sale and distribution.
• Confirm whether a lender escrow is paying taxes; double payments or missed escrows can create avoidable disputes.

Talk to a Partition Action Attorney

If you’re dealing with co-owners, unpaid taxes, and the need for a court-ordered 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.