Short Answer

In North Carolina, county and city property taxes are secured by a lien on the real estate and are normally collected and paid at closing from the sale proceeds. To confirm payment, obtain the closing disclosure/settlement statement and written payment proof from the closing attorney and the county tax office. If any bill remains, have the personal representative pay it as a secured claim from the estate or work with the closing attorney to cure it from escrow or trust funds. Act quickly—interest and costs can accrue on delinquent taxes.

How North Carolina Law Applies

Property taxes are a first-position lien on real estate in North Carolina, so standard real estate closings collect and pay those taxes from the seller’s proceeds. A leading North Carolina estate administration guide explains that claims with a specific lien on property are prioritized as secured claims for payment in an estate, and the personal representative (PR) can liquidate assets when needed to pay valid debts. In practice, your quickest path is to confirm that closing funds actually reached the tax collector and that the parcel shows a $0 balance. If a balance remains, the tax bill should be treated and paid as a secured claim of the estate.

Example: The home sells in October. The settlement statement shows a disbursement to the county tax collector. You request a tax receipt and account printout tied to the parcel number. If the county shows the payment posted and a zero balance, you’re done. If not, the closing attorney should immediately remit or the PR should pay the outstanding amount as a liened claim.

Key Requirements

• Property taxes are secured by a lien on the real property and are typically paid at closing from sale proceeds.
• In an estate, claims that are secured by a specific lien on property are paid ahead of general unsecured claims.
• The PR may use estate assets (and, if necessary, sale proceeds) to pay valid debts and taxes.
• Sales by heirs within two years of death can create creditor risks if a PR did not publish notice and join the sale.

Process & Timing

1. Gather closing records: Ask the closing attorney for the ALTA/HUD settlement statement, wire ledger, and any check/wire to the county/city tax collector.
2. Identify the parcel: Locate the parcel ID/PIN from the deed or prior tax bill to ensure you’re checking the correct account(s). Many properties have separate county and city bills.
3. Confirm with the tax office(s): Contact the county tax collector (and any city that bills separately) to obtain a written account history, current balance, and receipts showing the closing payment posted. Request a payoff letter if anything remains.
4. Verify escrow timing: If taxes were prorated but not yet due at closing, confirm whether the closing attorney held funds in trust and when those funds will be remitted. Ask for proof of payment once sent.
5. If a balance remains: a) If the estate is open, provide the bill to the PR for payment as a liened claim from estate funds; b) If the closing attorney failed to pay as shown on the disclosure, ask them to immediately cure from trust/escrow and provide proof; c) Obtain a payoff good-through date to stop additional interest.
6. Document resolution: Keep the paid tax receipts and zero-balance confirmation in the estate file and provide them for the final account with the Clerk, if applicable.

What the Statutes Say

• North Carolina General Statutes § 105-355 (Lien of property taxes) — establishes the lien of ad valorem taxes on real property.
• North Carolina General Statutes § 105-361 (Right to statement of amount due) — allows you to obtain a written statement from the tax collector showing taxes due on a parcel.
• North Carolina General Statutes § 28A-19-6 (Order of payment of claims) — prioritizes secured claims (specific liens on property) over general unsecured claims in estates.
• North Carolina General Statutes § 28A-15-1 (Assets available for payment of debts) — makes all assets generally available to satisfy estate debts.
• North Carolina General Statutes § 28A-13-3 (Powers of personal representative) — authorizes the PR to take actions, including selling assets when appropriate, to pay valid claims.
• North Carolina General Statutes § 28A-17-12 (Sales by heirs/devisees within two years) — cautions that sales by heirs within two years can be void as to creditors if a PR has not joined the sale after giving notice to creditors.

Exceptions & Pitfalls

• Do not rely only on prorations: A line item on the settlement statement is not proof the tax office received funds. Always obtain a tax receipt or account printout.
• Separate bills: Some cities bill taxes separately from the county. Check both accounts.
• Delinquent interest/costs: If a tax rolls delinquent, interest and costs accrue until the collector receives payment. Get a good-through payoff before paying.
• Year of sale: Even if the bill was “not yet due” at closing, the lien still exists. Funds may be held in escrow for later remittance—confirm that remittance occurred.
• Heir-led sales: If heirs sold the property within two years of death without a PR joining after notice to creditors, creditors (including tax authorities) may still have enforceable rights against proceeds.

Helpful Hints

• Ask the closing attorney for written proof of remittance (check image or wire confirmation) to the tax collector.
• Keep the parcel ID/PIN handy when calling the tax office; it speeds up verification.
• Request a “paid tax receipt” and an “account history” showing a zero balance for the year of sale and any prior year.
• If the estate is open, save all receipts and confirmations to attach to the final account with the Clerk.
• If something looks off, escalate promptly to the closing attorney and the PR; delays increase interest and costs.

Sources & References

• North Carolina Estate Administration Manual, North Carolina Bar Association CLE, Supplemented 10th Edition (2022/2024). See: Chapter VI (VIII-6 to VIII-8) on claims and payment priorities; Chapter IX (Handling Assets, sale/liquidity and abatement); Chapter III (III-18 to III-19) on sales by heirs and creditor issues; Chapter XII (XII-10 to XII-12) on payment of claims and delayed administration.

Disclaimer: This article is general information about North Carolina law, not legal advice. Reading it does not create an attorney‑client relationship.

Talk to a Probate Attorney

If you’re dealing with confirming tax payments from a home sale or clearing unpaid property tax bills in an estate, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at (919) 341-7055.