Short Answer

In North Carolina, a creditor who doesn’t present a claim within the estate’s notice period is usually barred from collecting from general estate assets. But a properly perfected lien (for example, a docketed judgment lien on real estate) can still encumber the property and may need to be cleared at closing. Your next step is to confirm whether the lien was actually perfected against the property and remains in force; if it wasn’t, it is likely an unsecured, time-barred claim.

Understanding the Problem

You’ve closed a North Carolina probate after publishing notice to creditors, and you’re now preparing to sell estate real estate when a “court costs” lien turns up in a title search. You didn’t receive a claim during the creditor notice period. Can you sell without paying, or must you clear it?

Apply the Law

North Carolina law distinguishes between unsecured claims (which must be presented within the estate’s notice window) and secured claims that already attach to specific property (like properly docketed judgment liens). Unsecured claims that miss the deadline are generally barred from payment out of estate assets. By contrast, a valid, perfected lien on real property typically survives the probate claim bar and must be dealt with at sale, unless it has expired or was never properly perfected. The Clerk of Superior Court is the main forum for estate proceedings, and the claim presentment window runs at least three months from first publication of the notice to creditors, with extensions for mailed notice to known or reasonably ascertainable creditors.

Key Requirements

• Identify the lien type and perfection: Confirm whether it’s a docketed judgment lien recorded in the county where the property sits, versus a mere bill for costs (unsecured).
• Check attachment and status: Verify the docket date, county, parties, and whether the lien is still in force under current law; invalid or expired liens don’t need payoff.
• Assess claim presentment: If the creditor did not have a perfected lien, they had to present a written claim within the estate’s notice window or, if mailed notice was required, within the mailed-notice extension.
• Classify for payment priority: If valid, liens tied to specific property and judgments that are liens are paid according to statutory priority and limited to collateral value.
• Choose the forum and remedy: Use the Clerk of Superior Court to (a) determine claim validity/priority, (b) reopen the estate if needed, or (c) petition to sell property with liens attaching to proceeds.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-14-1 (Notice to creditors) – PR must publish notice and mail notice to known or reasonably ascertainable creditors.
• North Carolina Gen. Stat. § 28A-19-3 (Bar of claims) – Unpresented claims are generally barred after the notice period, with specific exceptions.
• North Carolina Gen. Stat. § 28A-19-6 (Order of payment of claims) – Sets the priority, including specific liens and judgments that are liens.
• North Carolina Gen. Stat. § 28A-23-5 (Reopening estates) – Clerk may reopen for other property, needed acts, or other proper cause.

Analysis

Apply the Rule to the Facts: Because you received no claim during the creditor window, any unsecured “court costs” claim is likely barred from payment out of general estate assets. However, if the “court costs” entry on title is a properly docketed judgment lien in the county where the property sits and it remains in force, that lien typically survives the probate claim bar and must be addressed at closing. If the record shows no proper docketing, wrong party, wrong county, or an expired lien, you likely do not need to pay it to convey clear title.

Process & Timing

1. Who files: Personal Representative (current or, if discharged, by moving to reopen). Where: Clerk of Superior Court in the county of the estate. What: File a verified petition in the estate file to (a) determine the validity/priority of the alleged lien or claim, and, if needed, (b) reopen the estate under the reopening statute and/or (c) petition to sell real property with liens to attach to proceeds. When: As soon as the title issue is discovered; procedures and timelines can vary by county.
2. Obtain certified judgment-docket and title records; give notice to the listed creditor. The Clerk can determine whether the claim is barred, whether a lien was properly perfected and remains in force, and how it must be handled at sale. Contested issues may be transferred to Superior Court.
3. Proceed to closing: if the lien is valid, satisfy it from sale proceeds or sell with the lien attaching to proceeds by order; if invalid/expired, request an order or documented basis to clear title. Then file your final account/update if the estate is reopened and obtain discharge.

Exceptions & Pitfalls

• Known or reasonably ascertainable creditors: If you should have mailed notice and did not, their deadline can extend; evaluate whether the creditor was reasonably identifiable.
• Existing perfected liens: The probate claim bar does not extinguish properly perfected real property liens; verify lien docketing, county, parties, and current status.
• Classification matters: A judgment for costs that is docketed is treated like any judgment lien; a mere invoice for costs without a perfected lien is usually an unsecured, time-barred claim.
• Expiry and errors: Many judgment liens lapse after a set period unless renewed; recording defects (wrong name, wrong county) can defeat attachment.
• Process traps: If you reject a timely claim, the creditor must sue within three months of written rejection; conversely, don’t pay a late, unsecured claim without confirming it isn’t within a statutory exception (e.g., certain tax claims).

Talk to a Probate Attorney

If you’re facing a surprise lien on North Carolina estate property at closing, 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.