Short Answer

In North Carolina, mediation for a co-owner property buyout is a confidential, structured negotiation run by a neutral mediator. It can be ordered by the Clerk of Superior Court in partition matters or occur under superior court rules if the case is in that forum. Attendance is controlled by court order, and any deal is enforceable only if reduced to writing and signed at the mediation. Disputed issues like rental income credits and valuation can be negotiated and folded into the buyout price.

Understanding the Problem

You’re asking how mediation works in North Carolina when co-owners are trying to buy out one another’s interest in jointly owned real estate. The immediate dispute is whether the buyout should account for rental income and whether to rely on a recent tax appraisal. A session is set at a neutral mediator’s office with controlled attendance, and new counsel is stepping in alongside existing counsel.

Apply the Law

In North Carolina partition matters, the Clerk of Superior Court may order mediation to facilitate settlement, including buyouts between co-owners. If the case is before the clerk, North Carolina’s mediation statute and Supreme Court rules for clerk matters govern; if it’s in superior court, the statewide mediated settlement conference rules apply. All required attendees must appear with full settlement authority. Mediation is confidential, but a settlement is binding only if put in writing and signed by the parties at the end of the session. The mediator reports the outcome to the court, and closing documents must be filed promptly as directed by rule or order.

Key Requirements

• Court authority and order: The clerk can order mediation in partition-related matters and set who must attend and by when; superior court cases follow the statewide mediation order.
• Attendance with authority: Each party (or an authorized representative) must attend in person unless excused by order, with power to agree to a buyout and sign.
• Confidential process: What’s said in mediation is generally inadmissible; limited statutory exceptions apply.
• Written, signed agreement: Any buyout terms—price, timing, treatment of rents/credits, releases—must be written and signed at mediation to be enforceable.
• Mediator report and closing papers: The mediator files a report after the session; if settled, a consent order or dismissal is filed within the time set by rule or order.
• Fees and sanctions: Mediator fees are shared or allocated by order, with relief available for indigent parties; nonpayment or failure to attend can draw sanctions.

What the Statutes Say

• North Carolina Gen. Stat. § 7A-38.3B (Mediation in matters before the clerk) – Authorizes the clerk to order mediation, sets attendance, confidentiality, mediator reporting, and fees.
• North Carolina Gen. Stat. § 7A-38.1 (Mediated settlement conferences in superior court) – Governs court-ordered mediation in superior court civil actions, including attendance, enforceability, and deadlines.

Analysis

Apply the Rule to the Facts: Because your session is at a neutral mediator’s office with controlled attendance, expect a court order or agreement specifying who must be present and that each attendee must have full authority to settle. Your rental-income dispute fits common “rents and credits” issues in partition buyouts and can be negotiated as an offset or separate payment. A recent tax appraisal is not binding; parties often agree to an independent appraisal or a pricing formula. Any deal must be written and signed before you leave to be enforceable.

Process & Timing

1. Who files: A party can move for mediation before the Clerk of Superior Court using the court’s mediation forms, or the court can order it. Where: Clerk of Superior Court (special proceeding) or Superior Court (civil action), depending on the case posture. What: In clerk cases, typical forms include the motion to mediate, the clerk’s mediation order, mediator designation, and mediator report (AOC-G-300/301/302/303). When: The mediation order sets a completion deadline; in superior court, parties typically select a mediator within 21 days of the mediation order.
2. The mediator schedules the conference, confirms attendance, and conducts confidential joint and private sessions focused on price, valuation method (often a licensed appraisal rather than tax value), and any rent/expense credits.
3. If you reach agreement, the terms are written and signed at mediation (buyout price, payment timeline, deed/release terms, rent credits, and any dismissal/consent order). The mediator then files a report, and the designated party files closing documents by the deadline in the order or rule.

Exceptions & Pitfalls

• If the case is transferred to Superior Court, different mediation rules and timelines apply; confirm which forum governs.
• Agreements that are not written and signed at mediation are generally unenforceable; do not leave with only a handshake.
• Ensure all co-owners and lienholders required by the court’s order attend or are properly authorized; absent decision-makers can derail settlement.
• Confidentiality has narrow statutory exceptions; know what can be disclosed before bringing third-party information.
• Failure to attend or pay mediator fees can result in sanctions; seek fee relief in advance if needed.

Talk to a Partition Action Attorney

If you’re navigating a co-owner buyout and need to resolve valuation and rent-credit issues in mediation, our firm can help you prepare, negotiate, and document the deal. Call us today to discuss your options and timelines.

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.