How can I get my name removed from a deed of trust if the home is titled only in someone else’s name? – North Carolina

Short Answer

In North Carolina, a person usually cannot “remove” their name from a deed of trust by themselves if they signed the loan documents. The lender must agree to a release, which most often happens through a refinance into the titled owner’s name alone, a loan assumption approved by the lender, or a payoff and recorded release. If the titled owner will not refinance or the lender will not release the non-owner signer, the non-owner may remain liable on the loan even without owning the home.

Understanding the Problem

In North Carolina real estate, a common situation arises when a non-owner signs loan paperwork (often as a co-signer or co-borrower) for a home that is titled only in another person’s name. The decision point is whether the lender will agree to remove the non-owner signer from the debt and the deed of trust, even though that signer has no ownership interest to “transfer.” The key trigger is the lender’s consent, which typically depends on the titled owner’s ability to qualify for the loan alone or to pay the loan off.

Apply the Law

Under North Carolina practice, a deed of trust is the recorded instrument that gives the lender a lien on the property and names a trustee with power to foreclose if the loan is not paid. Signing the deed of trust and related note can create personal liability for the debt even if the signer is not on the deed. To remove a signer from the deed of trust, the lender (or the party entitled to enforce the lien) generally must agree to release or satisfy the lien as to that signer, most commonly after payoff or as part of a lender-approved change to the loan. The main forum for recording the release is the Register of Deeds in the county where the property is located.

Key Requirements

Lender consent: The lender must approve any change that removes a borrower or co-signer from liability; a private agreement between individuals does not bind the lender.
A qualifying transaction: Removal typically happens through (1) refinance into the titled owner’s name alone, (2) lender-approved assumption/release (if the loan allows and the lender approves), or (3) payoff followed by a recorded release/satisfaction.
Proper recording: When the loan is paid off or otherwise released, the release must be executed and recorded in the county land records so the public record shows the lien has been discharged.

What the Statutes Say

N.C. Gen. Stat. § 45-41 (Recorded deed of release) – Allows the appropriate representative for the mortgagee/trustee to satisfy, discharge, and release a recorded mortgage or deed of trust by a properly executed and recorded instrument.
N.C. Gen. Stat. § 39-13 (Purchase-money deed of trust effective without spouse joinder) – Confirms that certain purchase-money deeds of trust can be effective without a spouse joining, which helps explain why liability and title interests do not always match.

Analysis

Apply the Rule to the Facts: Here, the home is titled only in the owner’s name, but the client signed the deed of trust and has been paying the loan. Because lender consent is the key requirement, the client generally cannot file something unilaterally to remove their name from the deed of trust while the loan remains outstanding. A qualifying transaction—most commonly a refinance by the titled owner or a payoff—would usually be needed before a release can be recorded to clear the lien from the public record.

Process & Timing

Who initiates: Typically the titled owner (or both parties) with the lender. Where: With the lender/servicer first; recording occurs at the Register of Deeds in the county where the property sits. What: Refinance application or assumption package; if paid off, a recorded release/satisfaction instrument. When: As soon as the titled owner is ready to qualify for a refinance or assumption; payoff releases are typically recorded after the lender processes the payoff and prepares the release.
Documentation step: Confirm whether the client signed only the deed of trust, or also signed the promissory note. The note drives personal liability; the deed of trust secures the debt with the property. The lender’s “release” process usually addresses the lien record, but the lender must also release the borrower from the debt obligation for the client to be fully off the hook.
Recording step: After payoff or approved release, the lender/trustee (or authorized representative) signs a release instrument and records it. Once recorded, the land records should show the deed of trust has been satisfied or released.

Exceptions & Pitfalls

“Quitclaiming” does not solve it: If the client is not on title, a deed from the client to the owner does not remove the client from the loan or deed of trust.
Private agreements do not bind the lender: Even if the owner agrees in writing to pay, the lender can still pursue any person who signed the note if payments stop.
Assumption is not automatic: Many loans do not allow assumption, and even when allowed, the lender may require underwriting and may refuse to release the departing signer.
Reimbursement is a separate issue: Being reimbursed for payments usually requires a separate agreement or a separate claim; it does not, by itself, remove a signer from the deed of trust or the note.
Recording confusion: A recorded release under North Carolina law clears the lien from the land records, but it does not replace the need for the lender to release personal liability on the underlying debt.

Conclusion

In North Carolina, removing a non-owner signer from a deed of trust usually requires the lender’s agreement, most often through a refinance into the titled owner’s name alone, a lender-approved assumption with a release, or a payoff followed by a recorded release. Without lender consent, the signer can remain liable even without ownership. The next step is to request the lender’s written requirements for a release and start the refinance/assumption process promptly, before the next payment due date.

Talk to a Real Estate Attorney

If someone signed a deed of trust for a home titled in another person’s name and needs a path to get off the loan and understand options for repayment, our firm has experienced attorneys who can help explain the lender’s requirements and the practical 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.