Dec52025
Real Estate Q&A Series

Can the co-owner who has been paying property taxes be reimbursed or credited if we sell or settle up later? – North Carolina

Short Answer

Under North Carolina law, a co-owner who pays property taxes can usually seek reimbursement or a credit from the other co-owners when the property is sold or in a legal accounting, subject to certain limits. The paying co-owner may have a reimbursement claim, a lien against the other owners’ shares, or a credit in a partition case, but there are time limits and exceptions, especially if one co-owner has had exclusive possession of the property.

Understanding the Problem

The narrow question here is whether, in North Carolina, a co-owner who has been paying all of the property taxes on inherited real estate can later be reimbursed or receive a credit if the land is sold or the co-owners otherwise settle up their interests. This comes up often when siblings inherit land together, one sibling handles the tax bills for years, and only later do the co-owners consider selling, buying each other out, or filing a court partition action. The focus is on what North Carolina real estate law allows in terms of contribution, credits, or liens between co-owners for past tax payments.

Apply the Law

Under North Carolina law, co-owners (often called cotenants) share responsibility for necessary carrying costs of jointly owned real estate, including property taxes. A cotenant who pays more than that cotenant’s fair share can, in many cases, seek contribution or reimbursement from the others. North Carolina statutes also spell out how those rights work in partition cases, how far back a claim for taxes can reach, and when a paying cotenant’s claim becomes a lien on the others’ interests. The main forums are the county superior court for partition or related real estate actions and, in some cases, the clerk of superior court for recording liens.

Key Requirements

  • Co-ownership: The people involved must be true co-owners of the same property (such as tenants in common or joint tenants), not just informal helpers or family members paying bills.
  • Payment of shared obligations: One co-owner must have paid property taxes or similar carrying costs that benefited the entire property, and those payments must exceed that co-owner’s own share.
  • No disqualifying circumstances: Certain situations, like exclusive possession by the paying co-owner or old, stale tax payments beyond statutory limits, can reduce or limit reimbursement or credits.

What the Statutes Say

Analysis

Apply the Rule to the Facts: In a situation where siblings inherit North Carolina land and one sibling has been paying all the property taxes, that paying sibling is generally treated as a cotenant who covered a shared obligation. If that sibling paid more than that sibling’s proportional share, North Carolina law can allow reimbursement or a credit against the other sibling’s share, particularly if there is a future sale, buyout, or a partition proceeding. The exact amount and time period that can be claimed may be limited by statutory provisions that cap how many years of property taxes may be recouped in a partition case and by any issues about who possessed or used the property during those years.

Process & Timing

  1. Who files: The co-owner who has paid the property taxes. Where: Typically in the Superior Court of the county where the land is located, often as part of a partition action or a related real estate proceeding. What: A partition petition or civil complaint that includes a request for contribution or an accounting for taxes and other carrying costs. When: Usually filed when co-owners decide they cannot continue joint ownership and need a sale, buyout, or court-ordered division; statutes may limit how far back tax reimbursement can be claimed, especially in partition proceedings.
  2. The court or clerk overseeing the partition will address the request for contribution, often by receiving affidavits, receipts, or other proof of property tax payments and then determining the allowable reimbursement or credit within the statutory time limits.
  3. The final step is typically an order or judgment in the partition or related case that sets out how sale proceeds or shares are distributed, including any credit or reimbursement due to the paying co-owner for eligible property tax payments.

Exceptions & Pitfalls

  • If the paying co-owner enjoyed exclusive possession or use of the property during certain periods, reimbursement for some carrying costs, including interest on encumbrances, may be reduced or denied.
  • Failure to keep records (such as tax bills, receipts, and proof of payment) can make it difficult to prove the amount of taxes paid and the time period covered.
  • Not asserting the reimbursement or contribution claim in a partition or settlement process can result in the claim being overlooked or effectively waived when sale proceeds are distributed.
  • Improvement costs are treated differently from basic carrying costs like taxes, so assuming that all spending on the property is reimbursable can lead to misunderstandings and disputes.

Conclusion

North Carolina law generally allows a co-owner who has been paying property taxes on jointly owned real estate to seek reimbursement or a credit from the other co-owners, especially at the time of sale, buyout, or partition. The claim must be tied to actual, provable tax payments that exceeded the paying co-owner’s share and is subject to statutory limits on how many years of taxes may be recovered and to any issues about exclusive possession. The practical next step is to gather tax records and raise the contribution issue clearly in any sale, buyout discussion, or partition filing in the county where the land lies.

Talk to a Real Estate Attorney

If there is inherited North Carolina property where one co-owner has been covering the taxes and the family is now considering a sale or buyout, our firm has experienced real estate attorneys who can help explain contribution, credits, and partition options. 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 there is a deadline, act promptly and speak with a licensed North Carolina attorney.

Category: Real Estate Q&A Series

Author: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.