Off-Market Investment Properties in North Carolina

Buying an Investment Property in North Carolina

The basics that change from state to state. This is general information, not legal or tax advice. Confirm the details for your deal with a local real estate attorney or title company.

Closings

North Carolina treats preparing deeds and certifying title as the practice of law, so a licensed North Carolina attorney prepares the documents and supervises residential closings.

Transfer tax

North Carolina's excise tax is $1 per $500 of the price (0.2%), and the law places it on the seller. Seven northeastern counties (Camden, Chowan, Currituck, Dare, Pasquotank, Perquimans and Washington) add a 1% local land transfer tax.

Foreclosures

Most North Carolina foreclosures are non-judicial power-of-sale sales under a deed of trust, but a hearing before the Clerk of Superior Court is required first. After the trustee's sale, anyone can file an upset bid at least 5% higher (minimum $750) within 10 days, and each new bid restarts the 10 days.

Wholesaling and assignments

North Carolina has no wholesaling statute in force. The Real Estate Commission treats marketing to buyers that is not tied to a specific contract as brokerage. Bill H797, which would require a license and give sellers a 30-day cancellation right, passed the House and is pending in the Senate.

Sources

• N.C.G.S. 105-228.30 (excise tax on conveyances)
• N.C.G.S. 45-21.16 (hearing before the clerk)
• N.C.G.S. 45-21.27 (upset bids)
• NC State Bar Authorized Practice Advisory Opinion 2002-1
• Perquimans County: Land Transfer Tax