Short Answer

Bring clear proof of what rent was collected, what expenses were paid, and a reliable valuation. In North Carolina partition buyouts, you typically show leases, rent rolls, bank statements, tax returns (Schedule E), property management statements, and receipts for taxes, insurance, and necessary repairs. For value, a recent appraisal by a North Carolina–licensed appraiser carries the most weight; county tax assessments are usually secondary.

Understanding the Problem

In North Carolina, a co-owner considering a buyout wants to know what to bring to mediation to prove their share of rental income and a fair property value. You and a co-owner expected to include rents in the buyout but now disagree about using a recent tax appraisal. You have a scheduled mediation at a neutral office, and new counsel will join existing counsel.

Apply the Law

North Carolina partition matters are handled as special proceedings before the Clerk of Superior Court. In a negotiated buyout (often at mediation), parties commonly exchange an accounting of “rents and profits” and credits for carrying costs. Mediators and courts prefer organized, source-backed financials and an appraisal from a licensed appraiser over a tax assessment. If no agreement is reached, the same documents are what the clerk will expect to see in a formal partition proceeding.

Key Requirements

• Prove gross rent received: Show leases, rent rolls, deposit records, and bank statements tying rent payments to the property.
• Prove net rent (after expenses): Document taxes, insurance, necessary repairs, management fees, utilities you paid, and mortgage interest to calculate net profits.
• Support ownership share: Provide the deed or recorded instrument showing each co-owner’s percentage.
• Show reliable value: Provide a recent appraisal by a North Carolina–licensed appraiser; bring the full report with comparable sales and adjustments. Use the county tax assessment only as a secondary data point.
• Credits and improvements: For credits, provide receipts and canceled checks; for improvements, be ready to show how they increased market value (not just what they cost).
• Mediation readiness: Bring a concise packet and a summary spreadsheet; be prepared to sign a written settlement before leaving if you reach agreement.

What the Statutes Say

• North Carolina Partition statutes (Chapter 46A) – Procedures for partition and related relief before the Clerk of Superior Court, including sale or division and accounting issues.
• Mediation in matters before the Clerk (G.S. 7A-38.3B) – Authorizes the clerk to order mediation; conferences are confidential and require attendance by decision-makers.
• Real Estate Appraisers Act (Chapter 93E) – North Carolina licensure for appraisers; certified appraisals are USPAP-compliant and generally carry greater weight than informal estimates.

Analysis

Apply the Rule to the Facts: You and your co-owner expected to include rental income in the buyout, so bring documents that show gross rents and the expenses you paid so net profits can be allocated by ownership share. Because there is a dispute about relying on a tax appraisal, commission a recent appraisal from a North Carolina–licensed appraiser and bring the full report. Organize everything for the mediation so a written agreement can be signed if you resolve the terms.

Process & Timing

1. Who files: Either co-owner. Where: Clerk of Superior Court in the North Carolina county where the property sits. What: If talks fail, a Petition for Partition (special proceeding) with supporting proof of ownership, rent accounting, and valuation. When: File anytime; county scheduling varies.
2. At mediation (court-ordered or voluntary), exchange your rent-and-expense packet and appraisal at least a few days beforehand if the mediator requests; expect a half- or full‑day session.
3. If you settle, sign a written agreement before leaving mediation; if not, the clerk can proceed to orders on accounting and, if needed, sale or other relief.

Exceptions & Pitfalls

• Do not rely solely on a county tax assessment; it often diverges from current market value. A certified appraisal is stronger.
• Separate personal charges from property expenses; mixed bank statements without annotations undermine credibility.
• Repairs vs. improvements: routine maintenance is an expense; improvements may warrant a credit only to the extent they increased value—bring permits, invoices, and evidence of value impact.
• Rent in cash: without receipts or deposits, use tenant affidavits, management statements, or texts/emails to corroborate.
• Mediation logistics: ensure decision‑makers attend and be ready to sign; mediation is confidential, but the settlement must be in writing to be enforceable.

Conclusion

For a North Carolina partition buyout, prove your rental share with source documents showing gross rent and the expenses you paid, and anchor value with a recent appraisal by a North Carolina–licensed appraiser. Bring leases, rent rolls, bank statements, Schedule E, management reports, and receipts for taxes, insurance, and repairs. Next step: assemble a concise packet and summary spreadsheet and deliver them to the mediator and opposing party by the mediator’s document‑exchange deadline.

Talk to a Partition Action Attorney

If you’re navigating a co-owner buyout and need to document rents and a fair value, our firm has experienced attorneys who can help you understand your options and timelines. Call us today to discuss your situation.

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.