Short Answer

In North Carolina, you cannot remove your name from a financed vehicle without the lender’s consent. Your practical options are: (1) refinance or an assumption so the other owner (or a buyer) takes the loan in their name; (2) sell the car and use the proceeds to pay off the lien; or (3) if your co-owner refuses to sell, file a partition-by-sale proceeding so the Clerk can order a sale. A court-ordered sale pays the lender first; if the sale is short, both borrowers may still owe the deficiency.

Understanding the Problem

Can a North Carolina co-owner force a sale of a jointly titled, financed car to stop ongoing liability when the other co-owner won’t cooperate? Here, both names are on the vehicle title and the finance contract, and one co-owner wants to sell while the other refuses.

Apply the Law

North Carolina law allows a co-owner to seek partition of jointly owned property. For a single vehicle, physical division isn’t practical, so the remedy is typically a partition by sale through a special proceeding before the Clerk of Superior Court. If ordered, the sale must follow North Carolina’s judicial sale rules. A perfected vehicle lien survives any transfer until the lien is paid and the lender issues a release; sale proceeds pay the secured lender first, then any net proceeds are divided between co-owners. If pleadings raise factual disputes or equitable defenses, the Clerk must transfer the case to a Superior Court judge.

Key Requirements

• Co-ownership: You and the other person both hold title to the vehicle; either co-owner may seek partition.
• Sale rather than split: Because a car can’t be divided in kind, the appropriate remedy is partition by sale.
• All necessary parties: Name the co-owner(s); add the lienholder if there’s a risk the sale will not fully satisfy the loan.
• Forum and procedure: File a special proceeding with the Clerk of Superior Court; sales follow North Carolina’s judicial sale rules and upset-bid process.
• Liens come first: The secured lender is paid from the sale proceeds before any owner receives funds; DMV will not retitle without a lien release.
• Transfer on dispute: If someone raises factual or equitable issues, the matter moves to a Superior Court judge.

What the Statutes Say

• North Carolina Partition Statutes (Chapter 46A) – Allow co-owners to partition property; for indivisible items like vehicles, partition is by sale.
• G.S. 1-339.1 (Judicial Sales—Article 29A) – Sets procedures for commissioner sales under Clerk supervision.
• G.S. 1-339.25 (Upset Bids) – Requires a minimum 10-day upset-bid period after a reported sale.
• G.S. 1-301.2 (Transfer to Superior Court) – Clerk transfers special proceedings when issues of fact or equitable relief are raised.

Analysis

Apply the Rule to the Facts: You and your mother both signed the title and finance contract, so either of you can start a partition by sale. Because a car cannot be fairly divided, a sale is the available remedy; the Clerk can appoint a commissioner to sell it. The lender’s lien must be paid first from the proceeds before DMV will retitle; if the sale price doesn’t cover the payoff, the lender can still pursue both signers for any deficiency. A partition order can force a sale, but it can’t rewrite the loan or release you from the note.

Process & Timing

1. Who files: A co-owner (you). Where: Clerk of Superior Court in your North Carolina county. What: A verified petition for partition by sale of the motor vehicle identifying the car (VIN), all co-owners, and the lienholder; request appointment of a commissioner. When: File as soon as practical if voluntary refinance/assumption or a consensual sale isn’t possible.
2. The Clerk issues process to all parties. If uncontested, the Clerk may order a sale and appoint a commissioner. The sale follows judicial sale procedures; expect at least one 10-day upset-bid period after the sale is reported.
3. At closing, the commissioner pays sale costs and the secured lender. After receiving a lien release, the buyer can retitle with DMV; any net proceeds are distributed among co-owners as ordered.

Exceptions & Pitfalls

• A partition sale cannot force the lender to release you from the note; liability continues if the sale is short.
• If there’s a real dispute about ownership, value, or equitable issues, the case will be transferred to a Superior Court judge, adding time and cost.
• Failing to include the lienholder when proceeds may be insufficient can delay or jeopardize the sale and distribution.
• DMV will not transfer clear title until the lien is paid and a lien release is provided; plan the payoff logistics with the commissioner and lender.
• Bankruptcy or repossession actions by the lender can stay or override a partition sale; monitor for defaults.

Talk to a Partition Action Attorney

If you’re dealing with a co-owned financed vehicle and need to end your liability, our firm has experienced attorneys who can help you understand your options and timelines. Call us today.

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.