Who should communicate with the buyers about the title status, and what documents should we share to keep the sale on track? – North Carolina

Short Answer

In North Carolina, the safest way to keep a sale on track when there are title concerns is for the closing attorney (and, if applicable, the listing agent) to handle buyer communications about title status, rather than the seller personally. Communications should focus on objective, shareable items—such as the title work status, a list of title requirements to clear, and any recorded documents—while avoiding legal conclusions like “the title is clear.” Sharing the right documents early can reduce buyer anxiety, but the closing attorney should control what is sent and how it is explained.

Understanding the Problem

In North Carolina, when a seller has a buyer raise concerns about a past tax foreclosure and possible unknown heirs, the key decision is who should speak to the buyer side about the title status so the transaction can still move toward closing. The issue usually comes up after an offer is accepted but before closing, when the buyer’s side asks for proof that the seller can deliver marketable title and wants to see what the closing attorney has found and what still needs to be done.

Apply the Law

North Carolina residential closings require supervision by a licensed North Carolina attorney, and tasks that amount to giving legal advice about title (for example, whether title is “clear” or whether a prior foreclosure fully cut off heirs) are part of the practice of law. In practical terms, that means the closing attorney is the right person to communicate the title status in a careful, non-misleading way, coordinate curative steps, and confirm what can be provided to the buyer or buyer’s lender without creating new issues. The listing agent can help with logistics and expectations, but the agent should not provide legal opinions about title.

Key Requirements

• Attorney-led title communication: Communications that interpret title problems or explain legal effect of prior proceedings should come from the closing attorney supervising the transaction.
• Document-based updates (not assurances): Updates should stick to verifiable items (what has been found, what is recorded, what is being requested or cured) and avoid definitive promises that the title is “clear” until the attorney is ready to close.
• Controlled sharing and confidentiality: The attorney should decide what parts of the file can be shared (and in what form) to satisfy the buyer, lender, and title insurer without disclosing unnecessary privileged communications or creating confusion.

What the Statutes Say

• N.C. Gen. Stat. § 10B-134.25 (Attorney supervision of residential real estate closings; unauthorized practice of law reminders) – Confirms that North Carolina attorney supervision rules still apply and that non-attorneys should not perform services that constitute the practice of law in a real estate closing.

Analysis

Apply the Rule to the Facts: Here, a buyer withdrew over title concerns tied to a prior tax foreclosure and unknown heirs. Because those concerns turn on whether the prior proceeding and later recordings effectively eliminated claims by heirs, the communication is not just “status”—it can easily become a legal conclusion about marketable title. The cleanest approach is for the closing attorney to give the buyer side a structured, document-based update (what has been confirmed with the tax office, what the title search shows of record, and what curative steps remain) rather than having the seller explain the prior foreclosure or promise that everything is fine.

Process & Timing

1. Who files: The seller’s closing attorney (sometimes called the settlement agent) coordinates title work and curative items. Where: Title records come from the Register of Deeds in the county where the property is located, and tax status is confirmed through the county tax office. What: A title update and a written list of “title requirements” (items that must be satisfied before closing), plus copies of key recorded instruments. When: As soon as a buyer raises a title objection, and ideally well before the due diligence deadline or scheduled closing (contract deadlines vary).
2. Buyer-facing update: The attorney (often through the listing agent for scheduling) can send a short, non-argumentative update: what was found, what is being done next, and when the next update will occur. This keeps the communication consistent and reduces the risk of mixed messages.
3. Resolution and closing: Once the attorney completes any needed curative work (for example, obtaining corrective instruments, additional recordings, or insurer approval), the attorney proceeds to closing and records the deed and other closing documents with the Register of Deeds.

Exceptions & Pitfalls

• Seller (or agent) over-promising: Statements like “title is clear” or “unknown heirs can’t do anything” can backfire if a later requirement appears. A better approach is “the attorney is addressing specific requirements identified by the title search and will update as items are completed.”
• Sharing the wrong materials: Raw title search notes, internal attorney communications, or incomplete drafts can confuse the buyer and create new disputes. The safer set to share is recorded documents plus a concise attorney-prepared summary of requirements (without legal opinions beyond what is necessary).
• Missing proof of contract status: If there were two offers and one buyer withdrew, confusion about whether a termination was properly executed can derail the next steps. The attorney should confirm whether there is a signed termination/release (or other written proof of status) before re-engaging that buyer or accepting another offer.

Conclusion

In North Carolina, communications about title status should be led by the closing attorney because title conclusions and “clear title” statements are legal issues tied to the attorney-supervised closing process. To keep the sale moving, the seller’s side should share objective, record-based documents and a clear list of title requirements, not informal assurances. The most important next step is to have the closing attorney confirm the contract’s current status and send the buyer side a written title-status update before the next contract deadline.

Talk to a Real Estate Attorney

If a sale is stalling because a buyer is worried about title—especially after a tax foreclosure or questions about heirs—an attorney can help organize the right communications, confirm contract status, and map out the steps to get to closing. 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.