Short Answer

Yes, North Carolina courts commonly award a cotenant credits for necessary carrying costs—like property taxes, homeowner’s insurance, mortgage payments, and essential repairs—paid on jointly owned property. Those credits are determined in the partition case and are applied before distributing land or sale proceeds, with fair offsets if you had exclusive use or collected rents.

Understanding the Problem

In North Carolina, you can file a partition action when co-owners cannot agree on what to do with inherited real estate. Your question is whether, as a co-tenant, you can get reimbursed in that partition case for property taxes and mortgage payments you paid on the home, and when the court decides those credits. The Clerk of Superior Court handles these special proceedings in the county where the property sits.

Apply the Law

North Carolina’s partition statutes allow the Clerk of Superior Court to divide the property in kind (with adjustments) or order a sale and then account among co-owners. As part of that accounting, the court can credit a paying cotenant for necessary carrying costs and principal-reducing mortgage payments that protected or preserved the property, and can offset those credits by reasonable rental value or rents received if one cotenant had exclusive possession or income from the property. The accounting typically occurs before the final order of partition in kind (often through an owelty adjustment) or before the distribution of sale proceeds if the property is sold.

Key Requirements

• Co-ownership: You and the other heirs hold the property as tenants in common; the partition is filed in the county where the land is located before the Clerk of Superior Court.
• Necessary expenses: Credits generally cover property taxes, homeowner’s insurance, mortgage payments (especially principal reduction), and necessary repairs that preserved the property’s value.
• Proof of payment: Bring documents (tax bills, lender statements showing principal and interest, insurance invoices, receipts, bank records) to substantiate each claimed expense.
• Offsets for use/rents: If you lived there alone or collected rent, the court may offset your credits by fair rental value or actual rents and profits received.
• Improvements: For upgrades, courts typically credit only the measurable value added to the property at partition, not your out-of-pocket cost.
• When credits apply: The Clerk resolves credits during the partition—before confirming an in-kind division (by owelty) or before distributing sale proceeds—so each cotenant’s share reflects the accounting.

What the Statutes Say

• North Carolina Gen. Stat. Chapter 46A (Partition) — Governs partition special proceedings, division in kind, sales, and related procedures before the Clerk of Superior Court.
• N.C. Gen. Stat. § 28A-15-2 (Vesting of real property) — Real property vests in heirs at death; post‑death carrying costs typically fall on co-owners, not the estate.
• N.C. Gen. Stat. § 1-301.2 (Transfer of special proceedings) — If factual or equitable issues arise (such as disputed accounting), the Clerk must transfer to Superior Court for resolution.

Analysis

Apply the Rule to the Facts: Without specific facts, the general application is: as a cotenant who paid taxes and the mortgage to preserve an inherited home, you can request credits in the partition case for those reasonable, necessary payments. If you also lived in the home alone, the court may reduce your credits by a fair rental setoff; if you did not occupy or collect rent, offsets are less likely.

Process & Timing

1. Who files: Any cotenant. Where: Clerk of Superior Court in the North Carolina county where the property is located. What: A petition for partition that also requests an accounting and credits for carrying costs (attach supporting documents). When: File whenever a division or sale is needed; raise credit claims early so the Clerk can resolve them before division or distribution.
2. Next step: The Clerk determines whether the property can be fairly divided in kind or should be sold. If divided in kind, the Clerk appoints commissioners to propose a division; any equalizing cash payment (owelty) can incorporate your credits. If a sale is ordered (including under heirs property procedures), credits are applied before distributing net proceeds.
3. Final step: The Clerk enters an order confirming the in‑kind division (with any owelty) or confirming the sale and directing distribution. The order applies your proven credits and any offsets so each cotenant receives the correct share.

Exceptions & Pitfalls

• If you enjoyed exclusive possession, expect an offset for reasonable rental value or for rents collected.
• Improvements are credited by value added at partition, not by what you spent—bring an appraisal or other value evidence.
• Incomplete records can reduce or defeat credits; keep lender histories showing principal reduction, tax bills, insurance policies, and receipts.
• If a personal representative held possession/control of the home for estate administration, some issues may be addressed in an estate proceeding; tell the Clerk so the case can be handled in the right forum.
• Heirs property procedures add appraisal/buyout steps that can affect timing; credit claims still get resolved before final distribution.

Talk to a Partition Action Attorney

If you’re dealing with an inherited property and need credits for taxes or mortgage payments in a partition case, 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.