Understanding the Problem
When multiple co-owners are dividing interests and preparing revised deeds for recording, they need to determine which property tax years remain unpaid for each parcel and which person made earlier payments. Information that is sufficient for planning may not be sufficient for recording, closing, or allocating reimbursements among the co-owners.
Apply the Law
Key Requirements
- Correct parcel identification: Use the parcel ID or PIN, property address, and the name used to list the property for taxation during each year in question.
- Proof of unpaid amounts: Obtain a written tax certificate from the county tax collector. Website information may be relied upon as a certificate only if the taxing unit has adopted an ordinance allowing that reliance.
- Proof of prior payments: Request any available county payment history or receipts and compare them with the co-owners’ canceled checks, bank statements, and online payment confirmations.
- Recording readiness: Determine whether the county has adopted a tax-certification requirement for deeds and whether the closing-attorney exception will be used.
What the Statutes Say
- N.C. Gen. Stat. § 105-361 requires the tax collector, upon a qualifying request, to provide a written certificate stating the taxes and special assessments owed for the current and prior years. It also provides that oral statements do not bind the tax collector or taxing unit. Website information may be treated like a certificate if the taxing unit has adopted an ordinance authorizing that reliance.
- N.C. Gen. Stat. § 105-350 requires the tax collector to keep adequate records of collections and report the amounts collected and remaining uncollected.
- N.C. Gen. Stat. § 161-31 allows specified counties, by resolution, to require tax certification before the register of deeds accepts a deed transferring real property. A deed supervised by a closing attorney may qualify for the statutory exception if it contains the required statement.
Analysis
Process & Timing
- Identify each account: Assemble the parcel ID, address, and listed owner’s name for each relevant tax year. Ownership changes or estate administration may require searching under more than one name.
- Request the certificate: An owner, occupant, lienholder, person with a legal interest, qualifying prospective purchaser or lender, or an authorized agent or attorney may request the written certificate from the county tax collector. Make the request before circulating deeds for signature or attempting to record them.
- Confirm unpaid years: Review the certificate for each parcel and list the delinquent years and amounts. Save an online portal printout for planning, but rely on it as a statutory certificate only if the taxing unit has adopted the required ordinance.
- Investigate prior payments: Ask the tax office for available payment-history details and copies of receipts. Match the dates and amounts to each co-owner’s canceled checks, bank statements, or online confirmations before assigning reimbursements or credits.
For example, a parcel may appear as “paid” online even though a payment was partial or applied to a different year. The certificate and collection record can clarify what remains due. If an out-of-state co-owner claims to have paid a year’s taxes, a county payment entry may help, but the co-owner’s banking or payment-confirmation records may still be needed to establish who actually supplied the funds.
Exceptions & Pitfalls
- Oral statements: A telephone or counter quote can be useful for preliminary planning, but an oral statement about the amount due does not bind the tax collector or taxing unit.
- Incomplete payer information: Although tax collectors must maintain adequate collection records, those records may not identify the person who ultimately supplied the payment funds. A name on a transaction or receipt should be compared with independent financial records.
- Older listed-owner names: A certificate request concerning taxes must specify the person who listed the property for taxation for each requested year. Ownership changes or estates may require multiple names.
- Misapplied payments: With multiple parcels, a payment may be credited to the wrong parcel or year. Compare the certificate, collection entries, amounts, and payment dates carefully.
- County-specific recording rules: Section 161-31 applies only to the counties listed in that statute, and a covered county must adopt a resolution before tax certification is required. Confirm the local procedure rather than assuming every register of deeds follows the same rule.
- Recording delays: If tax certification is required, discovering delinquent taxes at the last minute may delay recording unless the taxes are resolved or the deed qualifies for the closing-attorney exception.
Additional guidance may help when addressing outstanding property taxes before recording or determining whether a parcel is already in a tax sale or foreclosure process.
Conclusion
North Carolina law requires the tax collector to provide a qualifying requester with a written certificate stating the taxes and special assessments owed for the applicable years. Request one for every parcel, then compare available county collection records with the co-owners’ financial records to determine who actually paid. Before submitting revised deeds, confirm whether the county requires tax certification and address any delinquency or closing-attorney exception. For broader guidance, review Paying North Carolina Property Taxes and Real Property Ownership.
Talk to a Real Estate Attorney
If you are dividing co-ownership interests or need to verify property-tax records before recording deeds, call 919-341-7055 to request a free case evaluation with a North Carolina real estate attorney.
