How Co-Owners Can Resolve a Buyout Dispute and Obtain More Time to Refinance in North Carolina
1. Detailed Answer
When two or more co-owners cannot agree on a buyout under a probate estate or joint ownership arrangement, North Carolina law offers paths to resolution. You can negotiate directly, use mediation, or ask the court to intervene through a partition action. If you need extra time to close a refinance, you can petition the Clerk of Superior Court for an extension.
A. Negotiation and Mediation
Before going to court, try informal settlement. You and your co-owner(s) can:
- Agree on an independent appraisal to set fair market value.
- Negotiate payment terms to allow the buyer time to secure financing.
- Use a neutral mediator to facilitate discussion and reduce legal fees.
B. Partition Action in Superior Court
If negotiations fail, either co-owner may file a partition action under Chapter 46 of the North Carolina General Statutes. A court can:
- Order a division of the property in kind (physical split).
- Order a sale and divide the proceeds.
- Allow a co-owner to purchase other interests at the appraised value within 60 days.
See G.S. 46-5 for the buy-out election period.
C. Requesting More Time to Refinance
If you are under a court order or buy-sell agreement with a fixed deadline, file a Motion for Extension of Time in the same action. In your motion, include:
- Evidence of lender delays (loan approval letters, underwriting correspondence).
- A proposed new deadline and plan outlining steps to complete refinancing.
- Any agreement from the other co-owner to support the extension.
The Clerk of Superior Court has broad discretion to grant extensions for cause. A judge will consider whether the extension prejudices the other party or delays distribution of estate assets.
2. Key Steps to Settle a Buyout Dispute and Extend Refinancing Time
- Arrange an independent appraisal to establish fair market value.
- Attempt informal negotiation or engage a mediator.
- File a partition action under G.S. 46-4 if talks stall.
- Upon a sale order, elect to buy out co-owners within 60 days per G.S. 46-5.
- Prepare and file a Motion for Extension of Time detailing lender communications and a new closing timeline.
- Serve the motion on co-owners and obtain court approval before the existing deadline lapses.
Contact Pierce Law Group for Help
Buyout disputes and refinancing deadlines can stall property settlements. Our attorneys guide you through negotiation, mediation, and court procedures. To discuss your co-ownership situation, contact Pierce Law Group today. Email us at intake@piercelaw.com or call (919) 341-7055.
