Probate Q&A Series

How can I ask the court to reimburse me for carrying costs I paid while the property was co-owned? – North Carolina

Short Answer

In a North Carolina partition by sale, you ask the Clerk of Superior Court to award you “credits” or contribution for necessary carrying costs (like property taxes, insurance, mortgage interest, and essential repairs) you paid while you and the other owner held the property. You do this by motion, supported with receipts. The clerk can order reimbursement from the sale proceeds or adjust the final distribution to account for these payments, or approve a consent order if all parties agree.

Understanding the Problem

You co-own North Carolina real estate and have started a partition by private sale. You want to know how you can get reimbursed for carrying costs you advanced while the property was co-owned, and whether the court can adjust the sale proceeds to account for those payments. One key fact here is that one co-tenant already paid the carrying costs and now seeks repayment as part of the partition case.

Apply the Law

In North Carolina, partition proceedings are handled by the Clerk of Superior Court in the county where the land sits. When a sale is ordered (including a private sale), the clerk oversees confirmation of the sale and the distribution of proceeds. In that process, the clerk can account for equitable adjustments among co-tenants, including contribution for necessary carrying costs one owner paid for the benefit of the property. There is no rigid statutory deadline for asking, but you should request credits before the clerk confirms distribution of proceeds.

Key Requirements

  • Co-ownership during the expense period: Show you and the other party owned the property when the costs were incurred.
  • Necessary, property‑preserving costs: Taxes, insurance, mortgage interest, HOA dues, and essential repairs that maintained the property’s value are typically creditable; elective improvements may be handled differently.
  • Proof of payment and amounts: Provide bills, receipts, cancelled checks, and account statements tying each payment to the property and timeframe.
  • Equitable adjustments/offsets: Be prepared for potential offsets (for example, reasonable rental value if you had exclusive use, or rent received from third parties).
  • Timing and forum: File a written motion for credits in the pending partition special proceeding before the Clerk of Superior Court, before sale proceeds are finally distributed.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Because one co-tenant advanced carrying costs and a private sale is underway, you should file a motion in the partition case asking the clerk to award credits for those necessary payments. Support your request with invoices and proof of payment. If the other co-owner disputes the amounts or raises offsets (like exclusive use), the clerk can hear the issue or refer it for report before entering the final distribution order. If you both agree, a consent order can direct repayment from the sale proceeds without a hearing.

Process & Timing

  1. Who files: The co-tenant who paid the carrying costs. Where: Clerk of Superior Court in the North Carolina county where the property is located (same partition file). What: A written Motion for Credits/Contribution with an affidavit and exhibits (bills, receipts, statements). When: File as soon as possible and before the clerk orders final distribution of the sale proceeds.
  2. After filing, the clerk will set a hearing or accept a consent order. The clerk may also order mediation to resolve disputes efficiently. Timeframes can vary by county and docket.
  3. Upon sale confirmation, the clerk will enter an order of distribution. Allowed credits are paid from sale proceeds (or netted in the distribution) before dividing the remainder between the co-owners.

Exceptions & Pitfalls

  • Elective improvements may not be reimbursed unless they were necessary or increased value; you may need evidence (e.g., invoices, photos, or valuation).
  • If you had exclusive use/possession, expect potential offsets for reasonable rental value or for rents collected from tenants.
  • Mortgage interest, taxes, and insurance are usually treated as carrying costs; treatment of principal may vary—raise it clearly in your motion.
  • Vague requests fail. Tie each expense to the property and period of co-ownership, and total the amounts requested.
  • Use a consent order when possible. It can direct repayment from proceeds and avoid a contested hearing and delay.

Conclusion

To seek reimbursement in a North Carolina partition by sale, file a motion in the partition special proceeding asking the Clerk of Superior Court to award credits for necessary carrying costs you paid, backed by receipts and proof. The clerk can order repayment from sale proceeds or adjust the final distribution, with offsets if warranted. The most important step is to file the motion—and, if possible, a consent order—before the clerk enters the final distribution of proceeds.

Talk to a Partition Action Attorney

If you’re dealing with a partition by sale and need reimbursement for taxes, insurance, mortgage interest, or repairs you paid, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at .

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.