Short Answer

Generally, no. In North Carolina probate, unsecured claims not presented by the creditor notice deadline are barred from estate assets. However, existing liens (like recorded deeds of trust or properly docketed judgment liens) can still be enforced against the property despite the bar. If what you found is a valid, already-attached judgment lien, it must be cleared at closing; if it is a new claim trying to ripen into a lien after the deadline, it’s usually barred.

Understanding the Problem

You finished probate in North Carolina, and while preparing to sell estate real estate, a “court costs” lien appeared in the title search. It was not filed during the creditor notice window and no notice was sent to the estate. You want to know whether that lien must be paid now that the estate’s creditor period has closed.

Apply the Law

North Carolina’s creditor “nonclaim” statute bars most unsecured claims not presented by the published deadline (or within 90 days of personal notice if later). That bar does not extinguish a creditor’s right to enforce an existing security interest or lien on property. Real property vests in heirs or devisees at death, but it remains available to satisfy valid liens and estate debts. If a lawsuit was pending at death, the creditor had to substitute the personal representative by the bar date to keep the claim alive. The Clerk of Superior Court can hear estate proceedings to determine whether a claimed lien is valid and its priority.

Key Requirements

• Timely presentment: A creditor must present an unsecured claim by the published deadline (or within 90 days of personal notice, if that is later) or it is barred from estate assets.
• Existing liens survive: The bar does not prevent enforcement of an already existing lien or security interest (including a docketed judgment lien) against the specific property it encumbers.
• Judgment lien validity: A judgment lien must be properly created (e.g., judgment entered and docketed in the county) and, if litigation was pending at death, the estate had to be substituted by the deadline to avoid the bar.
• Forum and role of the Clerk: Disputes over whether a lien is valid or what class/priority it has may be brought as an estate proceeding before the Clerk of Superior Court.
• Sale proceeds and priority: If the property is sold, closing proceeds must first satisfy valid liens in order of priority before other debts.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-19-3 (Limits on presentation of claims) – Sets the creditor bar dates and preserves actions to enforce existing liens.
• North Carolina Gen. Stat. § 28A-19-1 (Presentation of claims) – Explains how claims must be presented and addresses pending actions at death.
• North Carolina Gen. Stat. § 28A-19-6 (Order of payment of claims) – Establishes claim classes and priorities, including secured and judgment liens.
• North Carolina Gen. Stat. § 28A-2-4 (Estate proceedings) – Authorizes the Clerk to hear proceedings on creditor priority and related estate administration issues.

Analysis

Apply the Rule to the Facts: Because the lien did not appear during the notice period, first confirm whether it is a valid, already-docketed judgment lien for “court costs.” If it is an existing judgment lien properly docketed in the county, it attaches to the real estate and must be satisfied from the sale proceeds despite the creditor bar. If it was not docketed or no lien existed and the creditor never timely presented a claim (and no personal notice was required), the claim is generally barred and the creditor cannot now create a new lien against the property.

Process & Timing

1. Who files: The personal representative (or an heir/devisee if the estate is closed). Where: Clerk of Superior Court, Estate Division, in the North Carolina county where the estate was administered or the property sits. What: File an estate proceeding to determine the existence/priority of the lien and, if needed, a motion to reopen the estate. When: As soon as the lien is discovered to avoid delaying closing.
2. Obtain and review the underlying judgment and docket entries. If disputed, request a hearing before the Clerk for a ruling on whether the lien is valid, its class, and its priority. Counties vary, but hearings commonly occur within several weeks once noticed.
3. If the lien is valid, pay it at closing and record a satisfaction/release with the Register of Deeds. If invalid or barred, provide the Clerk’s order and supporting records to the closing attorney to clear title.

Exceptions & Pitfalls

• Secured claims and existing liens (including properly docketed judgment liens) are not barred by the nonclaim statute and can be enforced against the encumbered property.
• Tax claims of the United States and certain State tax claims are not subject to the general bar; Medicaid estate recovery has special rules.
• If a creditor was reasonably ascertainable and did not receive required personal notice, it may argue the bar does not apply.
• A judgment does not become a lien on real property unless properly docketed in the county; verify docketing details in the title search.
• When selling, proceeds must first satisfy valid liens in order of their priority before other estate debts or distributions.

Talk to a Probate Attorney

If you’re facing a surprise lien on estate property after the creditor period, 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.