Short Answer

In North Carolina, you don’t file a court “partition” when an LLC owns the land. If all members agree, you handle it as an internal LLC transaction: approve a written plan, survey and subdivide as needed, then have the LLC deed specific tracts to members and record the plat and deeds with the Register of Deeds. If agreement breaks down, a judicial partition is not available against LLC property; members must look to the operating agreement, buyout remedies, or potential dissolution.

Understanding the Problem

You’re asking: in North Carolina, how can LLC members who unanimously agree split up land the LLC owns without going to court? The scope is limited to a consensual division of LLC-held real estate. One key fact: you and your siblings formed an LLC after inheriting a large parcel, and now need a clean way to divide or convey portions among yourselves.

Apply the Law

North Carolina’s partition statutes apply to co-owners who hold title directly (for example, as tenants in common). When an LLC holds title, the members don’t own the land— the LLC does—so you don’t use a partition proceeding before the Clerk of Superior Court. Instead, you use the LLC’s internal authority (operating agreement and North Carolina’s LLC Act) to authorize a distribution or conveyance, and you follow property recording rules: survey/plat if subdividing, and record deeds in the county Register of Deeds. Local subdivision approval and lender consents may be required before recordation.

Key Requirements

• Unanimous consent (or required vote): Confirm the operating agreement’s approval threshold and any transfer restrictions; for a major asset division, expect unanimous written consent.
• Survey and subdivision compliance: Hire a licensed surveyor; obtain any city/county subdivision approvals; prepare a plat that meets North Carolina recording standards.
• Proper conveyance documents: Have the LLC execute deeds that match the approved plan (for example, distribution deeds to each member or deeds to new co-ownership groups).
• Clear title and consents: Address deeds of trust, liens, access/utility easements, and HOA or restrictive covenant approvals; obtain partial releases from lenders if needed.
• Recording and books: Record the plat and deeds with the Register of Deeds; update LLC records (membership interests, capital accounts, and any equalization payments).

What the Statutes Say

• North Carolina Gen. Stat. Chapter 57D (LLC Act) – LLC owns the real estate; members act through company authority to approve distributions or transfers.
• North Carolina Gen. Stat. Chapter 46A (Partition) – Partition statutes govern co-owned property held in individual names; they do not apply to land titled to an LLC.
• North Carolina Gen. Stat. § 47-30 (Maps and plats to be recorded) – Sets technical requirements to record plats when subdividing land.

Analysis

Apply the Rule to the Facts: Because the LLC holds title, your group can’t use a court partition; you need a member-approved plan to subdivide and deed out tracts. The survey and subdivision approvals resolve how to divide the land, and the LLC’s deeds transfer title cleanly. Disagreements over survey costs or valuation can be addressed in the plan using equalization payments. A member’s threat to “file partition” doesn’t apply to LLC land; if consensus fails, remedies run through the operating agreement or, in extreme cases, dissolution.

Process & Timing

1. Who files: The LLC (through its members/manager). Where: Local planning/zoning office (for subdivision approval) and the County Register of Deeds (for plat and deed recordation). What: Written member resolution/consent, survey/plat, and LLC deeds conveying specified tracts. When: Subdivision approvals vary by county; expect weeks to months for survey and local review before recording.
2. Obtain lender and title approvals (partial releases, estoppels, easements) and finalize deed forms. Many projects complete this in parallel with survey/plat review; timelines vary by county and lender.
3. Record the approved plat and then record the LLC’s deeds to members. Update LLC ledgers for distributions and any equalization payments. Each member receives a recorded deed for their tract.

Exceptions & Pitfalls

• Operating agreement limits: Transfer restrictions or required voting thresholds can block a deed-out without proper approvals.
• Lender and lien issues: Deeds of trust often require lender consent and partial releases before splitting collateral.
• Subdivision rules: You generally cannot deed out new tracts without complying with subdivision ordinances and plat requirements.
• Access/utilities: Create easements for ingress/egress and utilities; missing easements can cloud title and reduce value.
• Taxes and fees: Consider transfer taxes/recording fees and potential income tax on distributions or equalization payments; confirm treatment with a tax professional.
• If no agreement: A judicial partition is not available against LLC-owned land; members may need to use buy-sell provisions, mediation, or seek dissolution or other relief in Superior Court.

Talk to a Partition Action Attorney

If you’re dealing with an LLC-owned parcel and want to divide it by agreement, our firm can help structure the plan, navigate local approvals, and prepare clean deeds. 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.