Short Answer

In North Carolina, an executor’s commission is discretionary and capped at up to 5% of commissionable receipts and disbursements. If you sell real property to pay debts, your commission is limited to the portion of sale proceeds actually applied to pay those debts. Commissions and clerk-approved administration expenses are costs of administration and generally get paid before creditor claims. Expect standard estate filing fees and an inventory fee based on the value of personal property, plus fees to initiate any special proceeding and conduct the sale.

Understanding the Problem

You are the North Carolina executor and need to sell estate property to pay creditors. You want to know what commission you may receive, what court costs and filing fees apply, how long the process takes, and whether you can be reimbursed for carrying costs before the sale. There are dozens of creditors who will require notice.

Apply the Law

North Carolina allows the clerk to award a reasonable commission to a personal representative, not to exceed 5% of commissionable receipts and disbursements. When real property is sold specifically to create funds to pay debts, the commission base is limited to the amount of sale proceeds actually used to pay those debts, not the entire sale price. The sale of real property to pay claims typically requires a special proceeding before the Clerk of Superior Court, with service on heirs and devisees, and the clerk may authorize a public or private judicial sale. Executors must publish and mail notice to creditors; those procedures start a claims window and affect timing. Court costs include the estate filing fee, an inventory fee calculated on personal property reported, and fees for petitions, service, publication, and judicial sale steps.

Key Requirements

• Commission cap and calculation: The clerk may allow up to 5% of commissionable receipts and disbursements; this is not automatic and is based on the time, responsibility, and skill involved.
• Sale-to-pay-debts limitation: If real property is sold to pay debts, commissions apply only to the portion of proceeds actually used to pay debts and legacies.
• Clerk approval and timing: Do not pay yourself commissions without a clerk’s order; commissions are often approved with an account but can be allowed during administration.
• Priority of payment: Commissions and necessary, documented administration expenses approved by the clerk are costs of administration and generally have priority over creditor claims.
• Special proceeding and service: To sell land to pay debts, file a verified petition in the estate file; serve heirs/devisees with an Estate Proceeding Summons and follow judicial sale procedures if ordered.
• Fees and costs: Expect the base estate filing fee, an inventory fee tied to personal property valuation, petition/service/publication costs, and sale-related costs; amounts can vary by county and over time.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-23-3 (Personal representative’s commissions) – Commission up to 5% of commissionable receipts/disbursements; court approval; factors; priority as costs of administration.
• North Carolina Gen. Stat. § 28A-17-1 (Application to sell real property to pay debts) – Executor may petition the clerk to sell real property to pay estate debts.
• North Carolina Gen. Stat. § 28A-14-1 (Notice to creditors) – Requires published and mailed notice; claims date must be at least three months from first publication.
• North Carolina Gen. Stat. § 7A-307 (Costs in administration of estates) – Sets estate filing and inventory fees and other court costs.

Analysis

Apply the Rule to the Facts: Because there are many creditors, you’ll need to publish and mail the required notice, which starts the claims window. If you sell real property solely to pay those claims, your commission base is limited to the proceeds actually used to pay debts. Your total commission, if allowed, cannot exceed 5% and requires a clerk’s order; do not self-pay without approval. Reasonable, necessary carrying costs (insurance, utilities, taxes) tied to preserving the property can be reimbursed as administration expenses when documented and approved.

Process & Timing

1. Who files: Executor. Where: Clerk of Superior Court in the county where the North Carolina estate is administered. What: Verified petition to sell real property to pay debts under Article 17; if not already open, file Application for Probate and Letters (AOC‑E‑201 or AOC‑E‑202). Use Estates Bill of Costs (AOC‑E‑383) to pay assessed fees. When: Publish and mail the creditor notice promptly after qualification; the claims date must be at least three months after first publication.
2. Serve heirs and devisees with an Estate Proceeding Summons; the clerk schedules a hearing. If the clerk authorizes a sale, follow judicial sale procedures (public or private) and, if required, file a report of sale and seek confirmation. Timeframes vary by county, market conditions, and sale method.
3. Apply sale proceeds to court‑approved costs of administration and allowed claims; any excess not needed for debts is distributed to devisees as ordered. Seek a commission order and reimbursement of approved expenses, then file the Final Account to close the estate.

Exceptions & Pitfalls

• Commission is discretionary and capped; the clerk may award less than 5% based on the work involved.
• When selling to pay debts, commissions apply only to the portion of proceeds actually used to pay those debts; avoid “double dipping” by seeking separate sale compensation and then a commission on the same dollars.
• Do not pay yourself a commission or reimburse carrying costs without a clerk’s order or clear authority; keep invoices and proof of payment.
• Ensure proper service on heirs/devisees in the special proceeding and comply with judicial sale rules; missing service can delay or undo the sale.
• Bond may need to be increased before receiving sale proceeds; confirm with the clerk before a sale closes.
• Court costs and fee schedules change; confirm the current fees with the clerk or the N.C. Judicial Branch costs page before filing.

Talk to a Probate Attorney

If you’re facing creditor pressure and need to sell estate property, 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.