Detailed Answer
When a personal representative needs to sell real estate belonging to an estate and recover the costs of carrying that property, North Carolina law requires you to file a special proceeding in the clerk of superior court. The key statutes are G.S. 28A-15-3 (sale of real property) and G.S. 28A-13-3 (allowance of costs of administration). Here is how the process works:
- Determine authority and need: Review the will or, if there is no will, the statutes governing sale of estate real property. Under G.S. 28A-15-1, the personal representative must show the sale benefits the estate or its beneficiaries.
- Prepare and file the petition: Draft a verified petition asking the clerk to approve the sale and allow reimbursement of carrying costs (property taxes, insurance, maintenance, utilities). Include:
- Description of the property
- Reason for sale (for example, to pay debts or distribute proceeds)
- An itemized statement of carrying costs incurred to date
- Names and addresses of heirs or beneficiaries
File the petition in the county where the estate is probated.
- Provide notice: Serve notice on all interested parties at least 10 days before the hearing, per G.S. 28A-15-3. Notice may go by mail or personal delivery.
- Attend the hearing: At the hearing, the personal representative must present evidence supporting the sale price, bidding process (if public sale), and the reasonableness of carrying costs. If no one objects, the clerk will sign an order authorizing sale and cost recovery.
- Sale and accounting: After the clerk’s order, proceed with listing or auction. Once the property sells, the personal representative deducts approved carrying costs and other administration expenses. Include these deductions in the final account filed under G.S. 28A-13-3.
- Final distribution: Use net proceeds to pay debts, taxes, and then distribute balance to heirs or beneficiaries according to the will or intestate succession rules (G.S. 28A-21).
Filing this proceeding ensures the court supervises the sale and approves any request to recover carrying costs as part of the estate’s expenses.
Key Steps to File and Recover Carrying Costs
- Verify personal representative authority under G.S. 28A-15-1.
- Draft a verified petition under G.S. 28A-15-3 specifying the property and carrying costs.
- Serve notice at least 10 days before the hearing.
- Attend the hearing and demonstrate reasonableness of sale terms and costs.
- Obtain a clerk’s order authorizing sale and cost recovery.
- Complete the sale, deduct approved carrying costs in the final account.
- Distribute net proceeds under G.S. 28A-21.
Handling a special proceeding to sell estate real property and recover carrying costs involves clear documentation, proper notice, and court approval. Pierce Law Group has seasoned attorneys who guide you through every step. Contact us today by email at intake@piercelaw.com or call (919) 341-7055 to schedule a consultation and ensure your estate administration proceeds smoothly.
