Jan282026
Real Estate Q&A Series

How can I enforce payment when someone took over my property but hasn’t finished paying me for it? – North Carolina

Short Answer

In North Carolina, enforcing payment after someone has taken over property usually depends on what documents were signed at the time of the transfer. If the buyer signed a promissory note and gave a deed of trust (or mortgage), the typical enforcement path is foreclosure under North Carolina’s foreclosure statutes. If there is no recorded security (like a deed of trust), enforcement often looks more like a contract/debt case in civil court, and the available remedies can be narrower and more fact-dependent.

Understanding the Problem

Under North Carolina real estate law, the key question is: when a person takes title or possession of real property after a transfer, but does not finish paying the agreed price, what legal tools allow the seller to force payment (or unwind the deal) based on the paperwork used for the transfer. The answer turns on whether the transfer was structured as a traditional sale with a recorded deed and separate financing documents, or as an installment-style arrangement where title was supposed to stay with the seller until full payment.

Apply the Law

North Carolina generally treats real estate payment disputes as document-driven. If the buyer owes money under a written obligation (often a promissory note) and the seller has a recorded lien (often a deed of trust) securing that obligation, the seller can usually enforce the lien through foreclosure in the county where the property sits. If the seller transferred the deed without keeping a recorded lien, the seller may still have contract-based remedies, but the seller may not have an automatic right to take the property back without a court process.

Key Requirements

  • Identify the deal structure: Determine whether the transaction was (a) a deed delivered at closing with seller financing, (b) a “contract for deed”/installment land contract, or (c) an informal family transfer with a side agreement to pay later.
  • Confirm the enforceable obligation: Confirm what written promise to pay exists (promissory note, settlement agreement, separation agreement provision, or purchase contract) and whether it states payment terms, due dates, and default rules.
  • Confirm the security (lien) and where it is recorded: Check whether a deed of trust or mortgage was signed and recorded with the county Register of Deeds, because that usually controls whether foreclosure is available.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, a former in-law acquired property in North Carolina but has not finished paying what was owed for the transfer. If the transfer included seller financing documents (a promissory note and a recorded deed of trust), enforcement commonly focuses on declaring a default and pursuing foreclosure to satisfy the unpaid balance. If the deed was signed over without a recorded lien, enforcement usually shifts to suing on the written payment obligation (if any) and then using judgment-collection tools, which can be slower and may not directly put the property back in the seller’s hands.

Process & Timing

  1. Who files: The seller/creditor (or the trustee under a deed of trust, depending on the remedy). Where: Typically in the county where the property is located (often involving the Clerk of Superior Court for foreclosure-related proceedings). What: The starting documents depend on the structure—often a notice of default and foreclosure filings if there is a deed of trust, or a civil complaint for breach of contract/money owed if there is not. When: Timing is driven by the default terms in the note/contract and any notice-and-cure provisions; deadlines and required notices can be strict and can vary by procedure.
  2. Next step: If a deed of trust exists, the process typically moves through the statutory foreclosure steps and hearings required in North Carolina before a sale can occur. If there is no lien, the case typically proceeds like other civil cases (service of process, response deadlines, potential motions, and possibly trial) before any judgment collection can begin.
  3. Final step: With a secured claim, the end point is often a foreclosure sale (or a negotiated payoff/reinstatement). With an unsecured claim, the end point is usually a money judgment, followed by collection efforts that may include liens and execution procedures, depending on what assets are available and what the law allows.

Exceptions & Pitfalls

  • Deed delivered without a recorded lien: If title was transferred and no deed of trust/mortgage was recorded, taking the property back is not automatic. The remedy may be limited to suing for the unpaid amount unless another enforceable property-based remedy applies.
  • Purchase-money deficiency limits: If the seller financed the purchase price and forecloses, North Carolina law can restrict deficiency judgments in many purchase-money situations, which can affect leverage and strategy. See N.C. Gen. Stat. § 45-21.38.
  • Contract-for-deed rules: If the arrangement was a “contract for deed,” North Carolina has specific statutory requirements and remedies that can change the analysis, including rescission rights in certain violations. See N.C. Gen. Stat. § 47H-6.
  • Family/in-law transactions and unclear paperwork: Informal deals often lack clear due dates, default language, or security documents. That can create disputes over what was actually agreed and can slow enforcement.
  • Wrong forum or wrong remedy first: Filing the wrong type of case (or starting foreclosure without the right recorded documents) can cause delay and added cost. A document review up front usually saves time.

For background on how enforcement often works when a promissory note is secured by a deed of trust, see stops making payments under a promissory note secured by a deed of trust.

Conclusion

In North Carolina, enforcing payment after a property transfer usually depends on whether the seller kept a recorded lien (like a deed of trust) securing the unpaid balance. With a recorded security instrument, foreclosure in the county where the property is located is often the main enforcement tool, and purchase-money deficiency limits may apply. Without a recorded lien, enforcement often requires a civil lawsuit to prove the debt and obtain a judgment. The next step is to gather the deed, any promissory note, and any deed of trust and file the appropriate action in the county where the property is located.

Talk to a Real Estate Attorney

If a buyer took over property but has not finished paying for it, our firm has experienced attorneys who can help review the transfer documents, explain the enforcement options, and map out the timelines. 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.