What Type of Deed Should Heirs Sign to Convey Their Interests in Property Located in Another State, and How Is It Recorded?

Detailed Answer

When North Carolina heirs inherit real estate that sits in a different state, the property cannot be transferred with a North Carolina probate order alone. Real estate is always governed by the law of the state where the land is located—often called the lex situs rule. Below is a step-by-step look at the typical options and recording process.

1. Determine Who Holds Title Right Now

• During probate – If the estate is still open and the personal representative has legal title, the representative usually signs a Personal Representative’s Deed (sometimes called a probate deed).
• After heirs take title – Once the estate vests title in the heirs, each heir signs the deed individually.

2. Choose the Deed Form Required by the Other State

Every state recognizes three common deed types:

1. General Warranty Deed – Promises the grantee the broadest protection against title defects, including those that arose before the heirs ever owned the land.
2. Special Warranty Deed – Warrants only against title problems that occurred while the heirs owned the property. This is the most frequent choice in multi-state transactions because it gives buyers some assurance without exposing heirs to unknown historical defects.
3. Quitclaim Deed – Conveys whatever interest the heirs have—if any—without any warranties. This works when the buyer or a co-heir accepts the risk or when the transfer is between family members.

Always verify the preferred deed form with a lawyer licensed in the state where the property sits. Some states use unique statutory forms or require specific language.

3. Execute the Deed Properly

• Acknowledgment – North Carolina heirs can sign before a North Carolina notary. Under the Uniform Recognition of Acknowledgments Act (N.C. Gen. Stat. § 47-2-48), most other states will accept a NC acknowledgment so long as the notarial certificate meets their formatting rules.
• Marital signature rules – Some states require non-owner spouses to sign to waive dower, homestead, or community-property rights. Confirm before circulating the deed for signature.

4. Record the Deed in the County Where the Land Is Located

Recording makes the transfer effective against third parties. Each state sets its own place of record—usually the county Register of Deeds, Clerk, or Recorder. The deed does not get recorded in North Carolina unless the land is here. Recording steps typically include:

1. Prepare any state-specific tax forms (e.g., transfer tax affidavits).
2. Mail or hand-deliver the deed, tax forms, and the recording fee to the recorder in the other state.
3. Wait for the recorder to return a stamped copy. Keep that copy for the North Carolina probate file to prove the sale or distribution.

In North Carolina, deeds become valid against creditors and purchasers only upon registration (N.C. Gen. Stat. § 47-18). Other states have comparable recording statutes, so prompt filing is essential.

5. Report the Transfer to the North Carolina Probate Court

• The personal representative lists the sale or distribution on the next Inventory or Annual/Final Accounting.
• Attach a certified copy of the out-of-state deed to show the clerk that the estate no longer owns the property.

Helpful Hints

• Always use the grantee names and marital status exactly as required by the destination state.
• Ask the recorder’s office for its current recording fee schedule; fees vary widely.
• Use a courier or trackable mail service when sending original deeds out of state.
• If multiple heirs live in different areas, consider remote online notarization allowed under N.C. Gen. Stat. § 10B-134.9.
• Engage a title company in the other state when selling to a third party; it will ensure the deed meets local standards and is recorded correctly.

Need Help Transferring Multi-State Real Estate?

Out-of-state property creates extra steps and strict filing deadlines. Our North Carolina probate team handles multi-state estates every day and coordinates with counsel in other jurisdictions to keep the process smooth and compliant. Call us now at (919) 341-7055 to protect your interests and close the estate with confidence.