Real Estate Q&A Series

Can I transfer my interest in a property to someone else, and what paperwork is required? – North Carolina

Short Answer

Yes. In North Carolina, an ownership interest in real estate is usually transferred by signing a deed (such as a general warranty deed, special warranty deed, or quitclaim deed) and then recording that deed with the Register of Deeds in the county where the property is located. The deed must be properly signed and notarized, and it must include required transfer-reporting information. The right paperwork depends on what interest is being transferred (full ownership vs. a partial interest) and whether there are liens, co-owners, or an agent signing under a power of attorney.

Understanding the Problem

In North Carolina real estate, the question is whether an owner can transfer an ownership interest in a property to another person and what documents must be prepared so the transfer is recognized in the public land records. The key decision point is what interest is being transferred (all ownership vs. a partial share) and whether the transfer needs to be reflected in the county Register of Deeds records to avoid title problems later. The paperwork typically centers on a deed and the steps required to sign and record it in the correct county office.

Apply the Law

North Carolina generally treats a deed as the core document that transfers an ownership interest in real property. To protect the new owner and make the transfer effective against later purchasers or creditors, the deed is typically recorded in the county where the land is located. Deeds also commonly require a notarial acknowledgment, and North Carolina requires certain transfer-reporting information to appear in deeds conveying property.

Key Requirements

  • A deed that matches the intended transfer: The document should clearly identify the grantor (current owner), the grantee (new owner), and the exact interest being conveyed (for example, the entire interest or an undivided percentage).
  • Proper execution and notarization: The grantor must sign, and the signature must be properly acknowledged before a notary (or other authorized official) so the Register of Deeds can accept it for recording.
  • Recordation in the correct county with required deed information: The deed should be recorded with the Register of Deeds where the property is located, and it must include required transfer-reporting details (such as names and mailing addresses) so the deed is recordable and complete.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The known facts only show that a property-related transfer question exists, but they do not identify the type of ownership interest, the county, or whether there are co-owners or liens. Under North Carolina practice, the starting point is still the same: the transfer is usually done by preparing a deed that accurately describes the property and the interest being conveyed, having the correct person sign in front of a notary, and recording the deed with the county Register of Deeds. If an owner is transferring only a partial interest (for example, adding a family member as a co-owner), the deed must state that clearly because the paperwork changes the ownership structure going forward.

Process & Timing

  1. Who files: Typically the grantor, grantee, or the closing/recording agent. Where: The Register of Deeds in the North Carolina county where the property is located. What: A properly prepared deed (often a general warranty deed, special warranty deed, or quitclaim deed) with a notary acknowledgment and the required transfer-reporting information. When: As soon as practical after signing, because delays in recording can create priority and title problems.
  2. Recording and indexing: The Register of Deeds reviews the document for recordability (format, notarization, required information) and then records and indexes it in the public records. Processing time can vary by county and by whether the deed is submitted in person, by mail, or electronically (if available).
  3. After recording: The recorded deed becomes part of the chain of title. The parties should keep a copy of the recorded deed (with book/page or instrument number) for future refinancing, sale, or estate planning.

Exceptions & Pitfalls

  • Using the wrong deed type: A quitclaim deed may transfer whatever interest exists but typically does not include the same assurances about title that warranty deeds provide. The right choice depends on the goal of the transfer and the risk tolerance of the parties.
  • Co-owners and marital rights: If the property is jointly owned, one owner generally cannot transfer more than that owner’s own interest. Also, certain marital property rules can affect what signatures are needed and what interest can be conveyed.
  • Liens and loans: A deed transfer does not automatically remove mortgages, deeds of trust, judgment liens, or other encumbrances. Some loans also have contractual restrictions that can be triggered by a transfer.
  • Power of attorney issues: If someone signs as an agent, the power of attorney often must be recorded and properly referenced in the deed recordation information. See N.C. Gen. Stat. § 47-28.
  • Recordability details: Missing notary acknowledgment language or missing transfer-reporting information can delay recording. North Carolina requires specific transfer-reporting information in deeds conveying property. See N.C. Gen. Stat. § 105-317.2.

Conclusion

In North Carolina, transferring an ownership interest in real estate is usually done by preparing a deed that clearly states what interest is being conveyed, having the correct person sign it with a proper notary acknowledgment, and recording it with the Register of Deeds in the county where the property is located. The most important next step is to identify the current ownership and the intended new ownership so the deed can be drafted correctly, then record the signed deed promptly to reduce title and priority risks.

Talk to a Real Estate Attorney

If a property interest transfer is on the table and the right deed, signatures, or recording steps are unclear, a real estate attorney can help sort out the options and timelines before paperwork gets filed. 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.