Short Answer

In North Carolina, co-owners usually set a buyout price by starting with the home’s current fair market value (often via an independent appraisal), then applying credits and debits for things like taxes, insurance, necessary repairs, improvements, and any offset for one owner’s exclusive use. The net value is then multiplied by each person’s ownership share. If you cannot agree, a partition case in the Clerk of Superior Court can lead to an in-kind division with equalizing payments or a court-ordered sale.

Understanding the Problem

You and your former partner (North Carolina co-owners) want to resolve your shared home by having one buy out the other. The key question is: how do you set a fair number now, especially where one person currently lives in the home and claims significant sweat-equity improvements?

Apply the Law

Under North Carolina partition law, co-owners may agree to a voluntary buyout at fair market value. A court will typically look at a current, reliable valuation (commonly an appraisal) and then account for contributions and benefits between co-owners. Improvements are credited based on how much they increased the property’s value, not just their cost. If the parties cannot agree, a partition proceeding in the Clerk of Superior Court may result in: (1) division in kind with an equalizing payment (owelty) to make shares fair, or (2) a judicial sale, with net sale proceeds divided after any allowed credits and adjustments. Appeals from certain clerk orders have short deadlines.

Key Requirements

• Determine fair market value: Use a current, independent appraisal or similar objective evidence to set today’s value.
• Apply credits and debits: Adjust for verified payments (taxes, insurance, necessary repairs), rental value for exclusive possession (when appropriate), and other contributions.
• Improvements credit: Credit is limited to the increase in market value the work added, not necessarily the labor or materials cost.
• Ownership share: Multiply the net value by each co-owner’s fractional interest to get the buyout figure.
• Forum and fallback: If no agreement, file a partition with the Clerk of Superior Court where the property sits; outcome may be in-kind division with owelty or a sale with division of net proceeds.

What the Statutes Say

• North Carolina Gen. Stat. Chapter 46A (Partition) – Governs partition in kind, by sale, commissioners, and related accounting between cotenants.
• N.C. Gen. Stat. § 1-339.1 (Judicial sales procedures) – Sets procedures for court-ordered sales and upset bids if a sale is required.
• N.C. Gen. Stat. § 1-301.2 (Appeals in special proceedings) – Provides de novo appeal rights and short timelines from clerk orders.
• N.C. Gen. Stat. § 7A-38.3B (Mediation before the Clerk) – Authorizes the clerk to order mediation to resolve disputes efficiently.

Analysis

Apply the Rule to the Facts: Title in both names with no mortgage means each holds a fractional interest. A neutral appraisal anchors fair market value. Because you both tracked taxes and insurance and split them, large contribution adjustments there may be minimal. The occupying partner’s exclusive use can trigger a fair rental value offset, balanced against their carrying-cost payments. Claimed improvements are credited only to the extent they increased the home’s value, which the appraisal can quantify.

Process & Timing

1. Who files: Any co-owner. Where: Clerk of Superior Court in the North Carolina county where the property is located. What: A petition for partition requesting approval of an agreed buyout, partition in kind with owelty, or partition by sale. When: There is no fixed filing deadline, but appeal windows and sale timelines are short once orders enter.
2. If you agree on a buyout, submit a consent order reflecting the appraisal, credits/debits (taxes, insurance, necessary repairs, rental offset if any), and the resulting price. Many counties set mediation or short hearings within weeks to finalize agreed terms.
3. If no agreement, the clerk may appoint commissioners to evaluate in-kind division and values. If a sale is ordered, expect statutory sale procedures and an upset-bid period. A final order will allocate net proceeds after allowed credits.

Exceptions & Pitfalls

• Family “heirs property” has special statutory buyout and appraisal rules that may not apply to non-family co-owners.
• Improvements get credit only for proven value added; photos and affidavits help, but an appraiser’s opinion carries weight.
• Exclusive occupancy can lead to a fair rental value offset; avoid disputes by documenting agreements about possession and timing.
• Keep receipts for taxes, insurance, and necessary repairs; missing proof can forfeit credits.

Talk to a Partition Action Attorney

If you’re working through a co-owner buyout and need a fair, documented number, our firm can help you value the property, sort credits, and navigate partition options. 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.