Jan272026
Real Estate Q&A Series

Do we need to settle and pay any outstanding property taxes before the deeds can be recorded? – North Carolina

Short Answer

In North Carolina, unpaid property taxes do not always block deed recording, but they can in many counties. A county may require a tax certification showing no delinquent taxes are a lien on the property before the Register of Deeds will accept a deed for recording. Separately, if a deed is subject to North Carolina’s excise tax on conveyances, that excise tax must be paid at recording even if property taxes are not paid.

Understanding the Problem

In North Carolina, when co-owners sign revised deeds to divide ownership interests in one or more parcels, the key question is whether the county Register of Deeds can record those deeds if there are delinquent property taxes tied to the parcels. The decision point is whether the county where each parcel sits requires a tax certification (or an attorney-supervised alternative) as a condition of recording. This issue often comes up when multiple owners must sign and return documents from out of state and the group wants to avoid a rejected recording.

Apply the Law

North Carolina law allows certain counties to require a “tax certification” before the Register of Deeds accepts a deed for recording. If the county has adopted that requirement, the tax collector must certify that no delinquent ad valorem taxes (county or municipal) or other tax liens the collector handles are a lien on the property described in the deed. Even where a county requires certification, the law provides an alternative path for deeds recorded under the supervision of a North Carolina closing attorney using a specific statement on the deed. Separately, many deeds trigger North Carolina’s excise tax on conveyances, which must be paid to the Register of Deeds before recording.

Key Requirements

  • County-specific recording rule: Whether the county commissioners have adopted a resolution requiring tax certification for deed recording.
  • Delinquent tax status: Whether any delinquent county or municipal property taxes (or other covered tax liens) remain a lien on the parcel.
  • Recording taxes/fees at the counter: Whether an excise tax on conveyances is due and must be collected and marked as paid before the deed can be recorded.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Because the revised deeds will be recorded in the county where each parcel is located, the practical risk is a rejected recording if that county requires tax certification and the parcel has delinquent taxes. With multiple co-owners signing from out of state, a rejection can create delays and re-signing problems, especially if the deed must be corrected and re-circulated. If the parcels are in counties that adopted the certification rule, the group typically needs either (1) a tax certification showing no delinquent tax liens, or (2) an attorney-supervised closing approach that uses the statutory statement and pays delinquent taxes upon disbursement of closing proceeds.

Process & Timing

  1. Who files: The person presenting the deed for recording (often a closing attorney or designated agent). Where: The Register of Deeds in the county where the parcel is located. What: The signed, notarized deed and any county-required tax certification (if applicable), plus payment of recording fees and any excise tax due. When: Before the deed can be recorded; if the county requires certification, it must be obtained before presenting the deed unless the attorney-supervised exception is used.
  2. Confirm county requirements: For each parcel’s county, confirm whether the county commissioners adopted the tax-certification requirement under N.C. Gen. Stat. § 161-31 and what form of certification the tax office accepts.
  3. Clear delinquent taxes or use the attorney-supervised exception: If delinquent taxes exist and certification is required, either pay them to obtain certification or coordinate an attorney-supervised recording that includes the required statement and handles delinquent taxes through closing proceeds (when that structure fits the transaction).

Exceptions & Pitfalls

  • Not every county uses the certification rule: N.C. Gen. Stat. § 161-31 applies only in the counties listed in the statute and only if the county adopted the required resolution; requirements can vary by county.
  • Property taxes vs. excise tax: Even if delinquent property taxes do not block recording in a particular county, an excise tax on conveyances may still be due and must be paid at recording if the deed is taxable under Article 8E.
  • Attorney-supervised exception is narrow: The exception in N.C. Gen. Stat. § 161-31 requires attorney supervision and specific deed language; missing or altered language can lead to rejection.
  • Multi-parcel, multi-county logistics: When parcels sit in different counties, each county’s Register of Deeds and tax office rules can differ, so one “package” approach can fail if a single county rejects the deed.
  • Out-of-state signatures and rejections: If a deed is rejected after signatures are gathered, fixing the issue may require re-notarization or re-execution, which can be slow when signers are out of state.

For more on avoiding rejected recordings, see steps required to make sure the deed transfer is properly recorded and how to find out whether the property is already in a tax sale process.

Conclusion

In North Carolina, delinquent property taxes do not automatically prevent recording a deed, but many counties can require a tax certification showing no delinquent tax liens before the Register of Deeds will accept the deed. Even when property taxes are not a recording condition, a taxable deed generally cannot be recorded until any required excise tax on conveyances is paid at the Register of Deeds. The next step is to confirm each parcel’s county recording requirements and, if needed, obtain the tax certification before presenting the deed for recording.

Talk to a Real Estate Attorney

If multiple co-owners are trying to record revised deeds and there may be delinquent taxes or county-specific recording requirements, our firm has experienced attorneys who can help clarify the steps, coordinate signatures, and avoid rejected recordings. 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.

Category: Real Estate Q&A Series

Author: Pierce Law

Pierce Law Group is a North Carolina law firm focused on probate administration, real estate partition matters, and surplus funds claims across North Carolina. We know these situations often come with stress, family dynamics, and time-sensitive decisions—so we prioritize clear communication, steady guidance, and a practical plan from day one. Our goal is to make a complicated process feel manageable, while protecting what matters most to you.