Jan282026
Real Estate Q&A Series

How can I find out whether there are any liens or unpaid taxes that would have to be paid at closing? – North Carolina

Short Answer

In North Carolina, the standard way to find liens and unpaid taxes that may have to be paid at closing is to have a closing attorney run a title search and obtain tax information from the county tax office. A proper search checks the county Register of Deeds records and the Clerk of Superior Court judgment/lien dockets for items like deeds of trust, judgment liens, and mechanic’s liens. Unpaid property taxes can create a lien that generally follows the property, so they are usually addressed (paid or prorated) as part of closing.

Understanding the Problem

In a North Carolina residential sale, the key question is whether anything already attached to the property title—such as a recorded lien or unpaid property taxes—must be paid off or otherwise handled as a condition of delivering marketable title at closing. The practical decision point is whether the property can transfer without a buyer or lender inheriting a legal claim against the property. This question often comes up when a property has been difficult to show or market and the parties want to know what financial “surprises” could delay closing.

Apply the Law

Most liens that affect a North Carolina closing show up in public records maintained at the county level. Common examples include deeds of trust (mortgages), judgment liens, and mechanic’s liens. Property taxes are different: county and municipal property taxes can become a lien on the real estate by operation of law, and North Carolina gives tax liens very high priority. In a typical sale, the closing attorney confirms what is of record, confirms what is owed, and then uses the closing payoff process to clear items that must be cleared to record the deed and (if applicable) the buyer’s deed of trust.

Key Requirements

  • Search the correct county records: Liens are generally county-specific. A search must cover the county where the property is located (and sometimes related counties depending on the seller’s history and the type of lien).
  • Check both land records and court lien dockets: Some claims are recorded with the Register of Deeds (like deeds of trust), while others are created or indexed through the Clerk of Superior Court (like judgment liens and many lien filings).
  • Confirm tax status with the taxing authority: A title search alone may not show the current payoff figure for property taxes, interest, and costs. The county tax office (and sometimes a municipality) is the source for current amounts due and delinquency status.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The property’s condition issues (access steps damage, pest issues, unsafe flooring, roof holes, and cleanup needs) can increase the chance that repair work, cleanup, or emergency services were performed recently, which can raise the risk of contractor-related claims if bills are disputed or unpaid. A North Carolina closing still turns on what is of record and what is owed: the title search and tax verification will show whether there are recorded liens (like judgments or filed mechanic’s liens) and whether property taxes are delinquent or accruing interest and costs. If an occupant delay has prevented maintenance, it is also common for sellers to discover delinquent taxes or older judgments only when the title work begins.

Process & Timing

  1. Who orders it: The closing attorney (often selected by the buyer in North Carolina, especially in financed transactions). Where: the county Register of Deeds office and the county Clerk of Superior Court records for the county where the property is located. What: a title search (chain of title and lien search) plus payoff requests for any recorded deeds of trust and a tax status/payoff check with the county tax office (and any applicable municipal tax office). When: typically early in the contract period; re-checks are commonly done close to closing to catch newly filed items.
  2. Identify what must be cleared: The attorney reviews recorded deeds of trust, judgment liens, and any filed claims of lien on real property, then confirms payoff amounts and whether releases/satisfactions will be required for recording.
  3. Handle at closing: Items that must be paid are paid from closing proceeds (or otherwise resolved), and the attorney arranges for recording the deed and any required releases/satisfactions or other curative documents.

Exceptions & Pitfalls

  • Assuming “nothing is recorded” means “nothing is owed”: Some obligations (especially taxes) require a direct payoff/status check with the taxing authority, not just a deed book search.
  • Searching the wrong place: Judgment liens and many lien filings are tied to the Clerk of Superior Court’s indexing/docketing system, not just the Register of Deeds land records.
  • Recent repairs and cleanup work: When a property needs significant work, contractor disputes can lead to lien filings. Even if the seller believes a bill is wrong, a filed lien can still cloud title until resolved.
  • Name variations: Judgment and lien indexing depends on names. Misspellings, prior names, and entity name variations can complicate searches and require careful review.
  • Timing surprises: A lien can be filed after a contract is signed. That is why closings often include an updated search close to recording.

Conclusion

In North Carolina, the reliable way to find liens or unpaid taxes that may have to be paid at closing is a title search of county land records and court lien dockets, paired with a tax status/payoff check from the county (and any municipal) tax office. Property tax liens can attach by law and generally have very high priority, and judgment liens can attach when docketed in the county. The next step is to have a closing attorney start title work early and request tax and loan payoffs well before the scheduled closing date.

Talk to a Real Estate Attorney

If you’re dealing with a North Carolina home sale and need to confirm whether liens or unpaid taxes could delay closing, our firm has experienced attorneys who can help you understand your options and 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.