Probate Q&A Series

How do I sell a co-owned property in North Carolina to cover funeral and property tax expenses? — North Carolina

Short Answer

In North Carolina, you can sell co-owned real estate in two main ways when you need funds for funeral costs and property taxes. If the decedent’s estate needs cash to pay claims, the personal representative can ask the Clerk of Superior Court for an order to sell the property and use the estate’s share of the proceeds to pay claims in the statutory priority. If co-owners won’t agree to sell, any co-owner can file a partition case to force a sale; tax liens are paid at closing, and the decedent’s share goes to the estate for funeral expenses. Title with survivorship (like spouses owning by the entirety) may bypass the estate and change the path.

Understanding the Problem

You want to know how, in North Carolina, you can sell a co-owned property to generate money to pay funeral costs and delinquent property taxes. The decision point is whether you proceed through the estate (with a personal representative) or through a partition action when co-owners do not agree to sell. The key office is the Clerk of Superior Court in the county where the property sits, and timing often turns on the estate’s creditor process and the sale procedure.

Apply the Law

North Carolina law provides two court-backed paths to sell co-owned real estate when money is needed for estate debts and taxes. First, the personal representative (PR) can ask the Clerk for authority to sell real property to create assets to pay claims; heirs/devisees are parties, and the sale follows judicial-sale procedures. Second, if co-owners won’t agree, any co-owner can bring a partition proceeding; if division isn’t practical, the Clerk can order a sale and divide net proceeds among co-owners, with the estate’s share available to pay funeral expenses. Property tax liens are specific liens and are paid from sale proceeds at closing before owners receive distributions.

Key Requirements

  • Authority to sell: Either unanimous consent of co-owners, a court order for a sale to create assets in the estate, or a partition order.
  • Proper forum and venue: File in the Clerk of Superior Court in the county where the land is located; join and serve all required parties.
  • Estate pathway: The PR files a verified petition to sell real property to pay claims; heirs/devisees must be served; sale proceeds flow to the estate and pay claims by statutory priority, including funeral expenses.
  • Partition pathway: Any co-owner can file; if the land can’t be fairly divided, the Clerk may order a sale; net proceeds are split by ownership after accounting adjustments; the estate’s share then pays estate claims.
  • Liens and priorities: Property tax liens are paid at closing from the gross proceeds before distributions; funeral expenses are paid from the estate’s assets in priority order.
  • Heirs-property nuances: If the property qualifies as heirs’ property, expect appraisal and potential buyout steps before any court-ordered sale.

What the Statutes Say

Analysis

Apply the Rule to the Facts: With no facts provided, consider two common scenarios. If you are the personal representative and the estate lacks cash, you petition the Clerk in the county where the land sits to sell the co-owned property to create assets; property tax liens are paid at closing, and the estate’s share pays funeral expenses according to the statutory priority. If you are a co-owner but not the PR and others won’t agree to sell, you file a partition case; the court can order a sale, pay off tax liens from the proceeds, and the decedent’s share goes to the estate to pay funeral expenses.

Process & Timing

  1. Who files: Personal representative (estate path) or any co-owner (partition). Where: Clerk of Superior Court in the North Carolina county where the property is located. What: Verified petition to sell real property to create assets (estate path) or verified partition petition; use the court’s summons forms (AOC-E-102 Estate Proceeding Summons or AOC-SP-100 Special Proceedings Summons) for service. When: Estates typically publish notice to creditors and hold funds until at least the 90-day claims period runs; sale timelines vary by county and judicial-sale scheduling.
  2. After filing: Serve all heirs/devisees or co-owners; the Clerk may set a hearing. For estate sales, the Clerk’s order authorizes a judicial sale; for partition, if division isn’t feasible, the Clerk orders a sale. Sales are usually public and subject to statutory procedures; expect several weeks to a few months for advertising, bidding, and confirmation.
  3. Finalize: The sale is reported to the Clerk for confirmation; the deed is delivered; closing pays property tax liens and costs; the estate’s share is deposited in the estate and applied to funeral expenses per priority; in partition, the Clerk distributes net proceeds by share after appropriate accounting.

Exceptions & Pitfalls

  • Title with survivorship (e.g., spouses owning by the entirety or joint tenancy with survivorship) may bypass the estate; the PR cannot sell that property as an estate asset.
  • Failing to join and serve all heirs/devisees (estate sale) or co-owners (partition) can invalidate orders as to those parties.
  • Heirs’ sales within two years of death can be void as to creditors unless the PR joins; open the estate and involve the PR when estate debts (like funeral expenses) must be paid.
  • Heirs’ property rules can add steps (appraisal and co-owner buyout rights) before a court-ordered sale.
  • Do not treat funeral costs as a lien on the whole property; they are paid from the estate’s assets in statutory order, not from other co-owners’ shares.

Conclusion

To sell a co-owned North Carolina property to cover funeral costs and property taxes, either proceed through the estate (the personal representative petitions the Clerk to sell and pays claims from the estate’s share in statutory priority) or file a partition case to force a sale if co-owners won’t agree. Property tax liens are paid at closing, and funeral expenses come from the estate’s proceeds. Next step: file the appropriate verified petition with the Clerk of Superior Court in the county where the land is located.

Talk to a Partition Action Attorney

If you’re dealing with a co-owned property and need sale proceeds to pay funeral costs or property taxes, 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.