Do I Get Any Ownership Interest in North Carolina Real Property If I Am Paying the Mortgage?

Detailed Answer

In North Carolina, regularly sending money to the bank does not automatically give you legal title to the real estate. Whether you gain an ownership interest depends on one of three things:

1. Your name on the deed. North Carolina follows the “title theory.” The person (or people) listed on the last recorded deed own the property. A mortgage is merely a lien, not a conveyance of title.
2. A written contract giving you an interest. Under the N.C. Gen. Stat. § 22-2 (Statute of Frauds), any transfer of land must be in a signed writing. An oral promise—even paired with years of mortgage payments—rarely survives in court.
3. Equitable remedies ordered by a judge. Two equitable theories can create an interest when the deed and contract do not:
   • Resulting trust. If you paid the full purchase price when title was taken in someone else’s name, a court may impose a resulting trust for your benefit.
   • Constructive trust/unjust enrichment. If your payments substantially benefited the titled owner and it would be unfair for that person to keep the entire equity, the court can award you a proportional share or reimbursement.

   These remedies are fact-intensive, decided case-by-case, and require a lawsuit—often in the context of probate or partition proceedings.

Common Probate Scenario

Imagine you moved into your late father’s house ten years ago and began paying the mortgage. Your father never added you to the deed. After his death:

• The deed still lists your father as the sole owner.
• His heirs—defined by N.C. Gen. Stat. § 29-15—now own the property, subject to the mortgage.
• You have no automatic title interest. You can, however, file a claim in the estate for reimbursement of the mortgage payments or petition for an equitable trust.

Reimbursement vs. Ownership

If several heirs inherit the home and you alone continue paying the mortgage, you can request contribution when the house is sold. North Carolina courts generally allow a paying co-tenant to recover their pro-rata share of principal, interest, taxes, and necessary repairs (see Wilson v. Wilson, 262 N.C. 121 (1964)). You would not forfeit your right to live in the house, but you must preserve receipts and proof of payment.

Protecting Yourself Going Forward

The simplest way to secure an interest is a recorded deed—whether a quitclaim, warranty, or deed of gift—executed with the required formalities (two witnesses and notarization, N.C. Gen. Stat. § 47-17). Recording at the county Register of Deeds puts the world on notice of your ownership.

Helpful Hints

• Get any promise of ownership in writing before you start making mortgage payments.
• Have all owners sign a deed or written agreement; verbal assurances are nearly impossible to enforce.
• Keep bank statements, cancelled checks, and lender account histories to prove every payment.
• If the titled owner dies, file a timely claim in the estate (within 90 days of notice to creditors, N.C. Gen. Stat. § 28A-19-3).
• Consider a formal co-ownership agreement spelling out each person’s share, payment obligations, and exit strategy.
• Before filing suit for a constructive or resulting trust, weigh litigation costs against likely recovery.

Bottom line: In North Carolina, paying the mortgage alone does not guarantee you own the real estate. Secure your interest in writing and record it, or be prepared to pursue equitable relief in court.

Need guidance? Our firm’s attorneys have years of experience untangling complex property and probate situations. Call us now at (919) 341-7055 to protect your investment and your rights.