Real Estate Q&A Series

What happens if there is a disagreement between co-owners about selling or using the property? – North Carolina

Short Answer

In North Carolina, co-owners generally have equal rights to possess and use the whole property, but one co-owner usually cannot force the others to sell just by demanding it. If co-owners cannot agree, a common legal solution is a partition case in Superior Court, which can result in the property being physically divided or sold and the proceeds divided. Disputes can also involve claims for an accounting of rents and profits if one co-owner collected more than a fair share.

Understanding the Problem

When two or more people co-own North Carolina real estate, disagreements often come down to one decision point: can the co-owners agree on the property’s future—how it will be used day-to-day, and whether it will be sold. Common examples include one co-owner wanting to sell while another wants to keep the property, or one co-owner using the property in a way the other co-owner believes is unfair. If agreement is not possible, the question becomes what legal process can resolve the deadlock.

Apply the Law

North Carolina law recognizes that co-owners (often called “cotenants,” such as tenants in common) typically have the right to enter, occupy, and use the property, subject to the same rights held by the other co-owners. When co-owners cannot agree, North Carolina also provides a court process—partition—handled in the Superior Court division (often through the clerk of superior court) to divide the property or, when appropriate, sell it and divide the proceeds. Separate from partition, if one co-owner has been collecting rent or other profits from third parties, North Carolina law allows a claim for an accounting so each co-owner receives the proper share.

Key Requirements

  • Co-ownership with a right of possession: Each co-owner generally has a right to occupy and use the property, but must respect the other co-owner’s equal right to do the same.
  • No agreement on use or sale: A true deadlock (or ongoing conflict) is what typically drives a partition filing or related claims.
  • Proper remedy for the dispute: The remedy may be (a) a partition (division or sale through court) and/or (b) an accounting for rents and profits received from third parties.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The available facts only show that there is a potential dispute between co-owners, but do not yet identify the type of co-ownership, whether anyone is collecting rent, or whether anyone is excluding another from the property. If the disagreement is about selling, North Carolina’s partition process is often the legal tool that breaks the deadlock. If the disagreement is about use or money (for example, one co-owner renting to a third party and keeping the income), North Carolina law may support an accounting claim so the proceeds are shared according to ownership interests.

Process & Timing

  1. Who files: A co-owner (cotenant). Where: Superior Court in the county where the real property is located (often handled through the clerk of superior court). What: A partition proceeding requesting actual partition (division) or partition sale, depending on the property and circumstances. When: There is no single universal “days to file” deadline for partition itself, but delay can increase costs and conflict, and other related claims (like money claims) may have separate time limits depending on the theory.
  2. Case steps: The court identifies the parties and ownership interests, then determines the method of partition (division, sale, or a combination) under North Carolina’s partition statutes.
  3. Outcome: If the court orders a sale, a commissioner conducts the sale under statutory procedures and the proceeds are distributed after approved costs and any proper adjustments between co-owners (for example, credits/debits the court recognizes).

Exceptions & Pitfalls

  • “Use” disputes are not always “wrongful”: Because each cotenant has a right to possess the property, one co-owner’s presence alone may not be enough to claim damages unless facts show an actual ouster or another legally recognized basis.
  • Income from third parties matters: If one co-owner rents the property to someone else or otherwise receives third-party income, North Carolina law can require proportional sharing and may support an accounting claim.
  • Agreements can change the default rules: A written co-ownership agreement (or provisions in a deed or settlement) may control possession, decision-making, reimbursements, and authority to act, which can change the analysis.
  • Title and party problems: Missing heirs, disputed ownership shares, or unclear deed language can slow the case and increase expense, even though the court can still move forward with partition in certain disputed-title situations.
  • Sale logistics and notice: Partition sales have procedural requirements (including notice rules for public sales). Mistakes can cause delays or challenges to the sale process.

Conclusion

In North Carolina, co-owners generally share equal rights to possess and use the entire property, but disagreements about selling or use can create a deadlock. When co-owners cannot agree, a partition proceeding in Superior Court can divide the property or order a sale and divide the proceeds, and a separate accounting claim may apply if one co-owner kept more than a fair share of third-party rents or profits. A practical next step is to gather the deed and ownership information and file a partition action in the county where the property is located if agreement is not possible.

Talk to a Real Estate Attorney

If there is a co-owner dispute about selling or using North Carolina property, our firm has experienced attorneys who can help explain the partition process, income-sharing rules, and the timelines that may apply. 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.