Short Answer

In North Carolina, changing the deed does not change who owes the mortgage. The person(s) who signed the promissory note stay personally liable unless the lender releases them through a refinance, formal assumption, or novation. Recording a deed without lender consent can also trigger a due-on-sale clause. If you add a child to the title, you still must pay the loan and property taxes, and the lender can enforce the lien against the property if payments stop.

Understanding the Problem

You want to know whether you would become responsible for an existing mortgage if a deed is transferred in North Carolina without refinancing. Here, the titled owner (your spouse) may sign a deed to you, or you may add a child as a joint owner with a right of survivorship to avoid probate. You also want to know whether the child must sign in person or whether a power of attorney can be used to execute the deed.

Apply the Law

Under North Carolina law, the deed controls who owns the real estate, while the promissory note controls who is personally obligated to repay the loan. A change in title does not remove or add someone to the loan unless the lender agrees in writing (refinance, assumption, or novation). Most deeds of trust include a due-on-sale clause allowing the lender to accelerate the balance if you transfer ownership without consent, subject to limited exceptions. North Carolina allows joint tenancy with right of survivorship when the deed clearly says so; otherwise co-owners hold as tenants in common. If an agent signs a deed under a power of attorney, the power of attorney should specifically authorize real estate transactions (and gifting if the deed benefits the agent or makes a gift), and the power of attorney must be recorded with the deed in the county Register of Deeds.

Key Requirements

• Lender release or assumption: Personal liability on the mortgage changes only if the lender approves a refinance, assumption, or novation in writing.
• Deed execution and recording: The current owner signs before a notary and records the deed with the Register of Deeds where the property sits.
• Due-on-sale awareness: Most loans allow acceleration after an ownership transfer unless an exception applies; get lender consent first.
• Joint tenancy language: To avoid probate through survivorship, the deed must expressly state “with right of survivorship.”
• Power of attorney use: The POA should expressly authorize real property actions (and gifts if applicable) and must be recorded with or before the deed.
• Grantee signatures: The grantee generally does not sign the deed unless taking on obligations (e.g., a loan assumption agreement).
• Taxes and fees: Ongoing property taxes continue, and excise tax/recording fees may apply when recording.

What the Statutes Say

• N.C. Gen. Stat. § 47-18 (Registration; priority) – Deeds must be recorded to protect against creditors and purchasers.
• N.C. Gen. Stat. § 47-28 (Powers of attorney used to convey land) – A power of attorney used to execute a deed must be recorded.
• N.C. Gen. Stat. § 32C-2-204 (Authority over real property) – Outlines an agent’s authority for real estate transactions.
• N.C. Gen. Stat. § 32C-2-217 (Gifts) – An agent needs express gifting authority to make gifts or self-benefiting transfers.

Analysis

Apply the Rule to the Facts: Transferring the deed from your spouse to you (or adding your child) does not, by itself, change who owes the mortgage; whoever signed the note remains liable unless the lender approves a refinance, assumption, or novation. Recording a deed without lender consent can allow the lender to call the loan due under a due-on-sale clause. If you want survivorship to avoid probate, the deed needs clear “right of survivorship” language. Your child does not have to sign the deed as a grantee; the titled owner signs. If you use a power of attorney, record it and be sure it authorizes real estate actions—and gifts if the transfer benefits the agent or the child.

Process & Timing

1. Who files: Current titled owner (or authorized agent). Where: County Register of Deeds in North Carolina where the property is located. What: Notarized deed (e.g., General Warranty, Special Warranty, or Quitclaim) with any “right of survivorship” language; applicable excise tax; recording fees. If using a power of attorney, record the POA with or before the deed. When: Record promptly after execution; obtain lender’s written consent before recording if the loan has a due-on-sale clause.
2. Lender step: Before transfer, request written approval for an assumption, novation, or consent to the transfer. Processing times vary by lender; plan for several weeks.
3. Final step: After recording, keep paying the mortgage and property taxes. Update insurance and any homeowners association records to match the new title.

Exceptions & Pitfalls

• Survivorship not automatic: If the deed lacks survivorship language, your child becomes a tenant in common and their share can require probate.
• POA limits: An agent needs clear authority for real estate transactions—and express authority for gifts or self-benefiting transfers. Record the POA with the deed.
• Due-on-sale risk: Some transfers trigger acceleration; limited exceptions exist, but they are narrow. Always check your loan and obtain lender consent in writing.
• Tax considerations: Adding a child can be a gift for tax purposes and may affect income-tax basis and property tax status; get tax advice before recording.
• Title insurance: Unapproved transfers can affect coverage; notify your title insurer if you change title.

Talk to a Real Estate Attorney

If you’re navigating a deed transfer, a possible loan assumption, or adding a child with right of survivorship, 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.