Short Answer

In North Carolina, come to a court-ordered partition mediation ready to either close a buyout or set clear terms for a sale. Bring current payoff and lien statements, valuation support, repair/improvement records, a simple accounting of who paid what, and proof you can fund or receive a buyout. Mediation before the Clerk follows court rules—attendance, settlement authority, and timely payment of mediator fees are required. If no deal, the case returns to the Clerk for further partition steps (division or judicial sale).

Understanding the Problem

You are a co-owner in North Carolina preparing for a court-ordered mediation in a partition case. The goal is to resolve whether a co-owner can buy out the others or, failing that, how to proceed to a sale. Here, one co-owner occupies the home and wants to keep it, but an earlier buyout failed when that co-owner did not provide updated payoff documentation. You and another co-owner now propose a new buyout price with a firm payment period or else a sale.

Apply the Law

Partition cases start as special proceedings before the Clerk of Superior Court. The Clerk can order mediation to streamline resolution. At mediation, parties must attend, have settlement authority, and pay mediator fees as ordered. If settlement is reached, it should be reduced to writing and signed before anyone leaves. If not, the Clerk can continue with partition procedures, which may include appointing commissioners to divide property or ordering a judicial sale that follows North Carolina’s upset bid process.

Key Requirements

• Attend with authority: All co-owners (or decision-makers) must attend with power to settle and arrange prompt payment of mediator fees.
• Exchange decision-grade information: Bring updated mortgage payoff/lien statements, insurance and tax status, valuation (CMA/appraisal), and proof of funds for any buyout.
• Account for use, costs, and improvements: Be ready to discuss occupancy, fair rental value issues, necessary repairs, improvements, taxes, insurance, and who paid what.
• Buyout mechanics: Have a clear price, deposit, financing proof, deadlines, and what happens if deadlines are missed (e.g., automatic pivot to sale).
• Sale fallback terms: If no buyout, be ready with sale terms consistent with judicial sale practice (listing approach or commissioner sale, timelines, and awareness of the upset-bid process).

What the Statutes Say

• North Carolina Gen. Stat. § 7A-38.3B (Mediation before the Clerk) – Authorizes mediation in matters within the Clerk’s jurisdiction and outlines procedures and fees.
• North Carolina Gen. Stat. § 1-301.2 (Transfer of special proceedings) – Requires transfer to Superior Court if issues of fact or equitable defenses are raised.
• North Carolina Gen. Stat. § 1-339.36 (Upset bids in judicial sales) – Sets the upset-bid procedure, including the 10-day period for increased bids after a report of sale is filed.

Analysis

Apply the Rule to the Facts: Because the occupying co-owner wants to keep the home, you should bring a buyout term sheet and proof they can pay (loan approval or funds on hand) by a firm deadline. Given the earlier failure to provide payoff documentation, insist on current payoff and lien statements in advance. Also prepare a simple accounting: occupancy and fair rental value considerations, repairs and improvements, and who paid taxes/insurance. If buyout terms are not met on time, pivot to a sale path consistent with judicial sale procedures.

Process & Timing

1. Who files: The Clerk typically issues the mediation order; parties can move for it if needed. Where: Clerk of Superior Court in the county where the property sits. What: AOC-G-301 (Order Regarding Mediation), AOC-G-302 (Designation of Mediator), AOC-G-303 (Mediator’s Report). When: Complete mediation by the deadline in the Clerk’s order (the specific date will be in that order).
2. Before the session, exchange payoff/lien statements, valuation, repair/improvement records, and any financing proof; many mediators request this 7–10 days in advance. Expect a half- or full-day session; the mediator will file AOC-G-303 shortly after.
3. If you settle, reduce the terms to a signed writing at mediation and submit a consent order in the special proceeding. If not, the case returns to the Clerk for next partition steps (commissioners, in-kind division, or sale). If a sale is ordered, be prepared for judicial sale rules and a 10-day upset-bid window.

Exceptions & Pitfalls

• Heirs’ property or complex title issues can change procedures and valuation steps; additional statutory requirements may apply.
• Coming without current payoff figures, proof of funds, or a written term sheet slows negotiations and invites impasse.
• Failure to attend with full settlement authority, or to pay mediator fees, can result in fee apportionment orders or show-cause proceedings.
• If someone raises title disputes or equitable defenses, the Clerk must transfer the case to Superior Court, which can delay resolution.
• For sale outcomes, remember the upset-bid process can extend timelines; build that expectation into your mediation terms.

Talk to a Partition Action Attorney

If you’re dealing with co-owners, a failed buyout, and a court-ordered mediation, 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.