How to Access Property Records in North Carolina

What Information Can You Find in North Carolina Property Records?

Property records contain a lot of information about the property itself and the owner. Some of the types of things you can learn when examining property taxes are:

This is a short list, so you may find more details when reviewing the records.

Deeds and Conveyance Records

Deeds transfer ownership of real property. They are most often used in real estate transactions, foreclosure sales, and family transfers of property without any money changing hands. Regardless of why they are used, all parties must sign to agree with the transfer. A notary will also execute the document to ensure its legality.

Deeds contain a lot of helpful information, such as:

• Name of the Seller/Grantor and Buyer/Grantee.
• A detailed description of the property.
• Maps and plats along with boundaries and sometimes surveys showing the acreage and edges of the property.
• Conveyance language explaining the ownership transfer from one person or entity to another.
• Notarization and execution are at the bottom, where everyone signs to make it legal.

Property Tax Records

No one likes taxes, but property taxes are a fact of life. Anyone who owns property in North Carolina must pay annual taxes on it. The average effective property tax rate in North Carolina is 0.70%. That figure is well below the national average of 0.99%. However, property taxes vary by county. For example, Edgecombe has the highest rate at 1.28%, and Jackson has the lowest at 0.40%. For a complete list of all the property tax rates by county, check this page.

Property taxes supply the county with much-needed funds to pay for schools, emergency services, and government wages. If you do not pay your property taxes, the local tax assessor can foreclose on your property and sell your home.

They contain information such as the following:

• Payment History - The document may outline any payments the owner has made so far and the dates of those payments.
• Owner Identification - The document should name the property owner, their address, and sometimes contacts.
• Property Description - If required, the record should describe the property by address, lot number, and legal description. The description may also note any improvements made to the property.
• Tax Rates - The document should outline the property's tax rate. Each jurisdiction has a different property tax rate, so the specific one used to calculate taxes should appear in the document.
• Tax Exemptions - The tax record may indicate the exemptions applying to the property.
• Tax Calculations - The document may include a breakdown of tax calculations based on the various taxing authorities.

How Often is Property Tax in North Carolina Assessed?

North Carolina law requires assessors to reassess property values every eight years. Reassessment is the responsibility of the County Assessor's office. The assessment process goes as follows:

• Valuation - The first step is valuing the property. Local assessors use approved methods, including comparable sales of properties within the area. To make an accurate assessment, assessors must account for differences between the properties.
• Notification - Once the assessor has the correct property value, they prepare and send a document containing the assessed value. The document may also include information about the applicable property tax rate and any notices the assessor has given regarding the assessment.
• Appealing - The third step is the appeal. Every property owner in North Carolina can appeal a property assessment value if they think it is unfair. The first step in the process can be contacting the tax office informally to resolve the matter. However, if the parties cannot resolve the matter informally, the owner may appeal to the local Board of Equalization and Review. Because it is a formal plea, the property owner has a set timeline to present the case before the board decides. When property owners are unsatisfied with the board's decision, they can appeal to the State Board of Equalization and Review, also known as the Property Tax Commission. However, appealing to this board means entering a trial-like state where the owner must prove their claim. Based on the evidence provided, the commission delegates a decision within a short time. The decision is final.

Property Liens and Encumbrances in North Carolina

Encumbrances are burdens on real property. A good example is a lien. Some liens are voluntary, like a mortgage or home equity loan lien. Others are involuntary and can negatively affect the property, decrease its value, and make it harder to sell. Liens can also lead to foreclosure and losing your home.

Voluntary Liens

Voluntary liens are those that you control. You willingly choose to use your home as collateral to secure a loan. The lender puts a lien on the property to protect itself, and if you default on the loan, they can foreclose and sell it to get their money back.

• Mortgage Liens - Mortgages are self-explanatory. Anyone who cannot afford to pay cash for their homes will have a mortgage. Mortgages allow people to purchase property and pay over time. When you take out a mortgage, you agree to pay interest on the loan along with your monthly payments. You must also keep homeowners insurance current on the property and pay for an appraisal and title insurance.

  In addition to these, you must allow the lender to put a lien on your property until the loan is paid off. If you default on the loan (do not pay it back), the lender can foreclose on your property and sell it at auction to recover their money. Your home is collateral for the loan.

  Mortgage records contain the following information:

  • Loan Amount - The mortgage paperwork specifies the principal loan amount borrowed from the lender. It may also include the interest rate, repayment terms, and unique loan restrictions or limitations.
  • Mortgage Terms - This section details the terms and circumstances of the mortgage, such as provisions for late payments, default, prepayment penalties, and other pertinent terms agreed upon by both parties.
  • Security Interest - The mortgage document designates the property as collateral for the loan. It specifies that the lender has a security interest in the property, which implies that the lender can foreclose on it.
  • Parties - The mortgage paperwork names the parties involved, including the borrower (mortgagor) and the lender (mortgagee). In most cases, their legal names and addresses appear in the document.
  • Property Description - The mortgaged property appears in the document, which may include the address, legal description, and a link to a survey or plat map.

Involuntary Liens

Involuntary liens are those over which you have no control. They are imposed because of a debt you owe. There are three types of involuntary liens. They are as follows:

• Mechanic's Liens - Mechanic's liens are legal tools contractors, subcontractors, material suppliers, landscapers, and laborers use to collect an unpaid debt. If someone works on the home and the homeowner fails to pay them, they can put a lien on the property to get paid. With enough time, they can foreclose on the home and force the owner to sell it to liquidate assets to pay them.
• Tax Liens - Every North Carolina resident must pay taxes. If a homeowner fails to pay their annual taxes, the county can put a tax lien on their property. That tax lien can also lead to foreclosure, and the county can sell the home at auction. Tax liens are very serious.
• Judgment Liens - Creditors and others with unpaid debts can use judgment liens to get paid. If the homeowner does not pay them what they owe, the creditor can take them to court. If the judge rules in the creditor's favor, the homeowner can proceed with foreclosure and sell the house to recoup their losses.

The Process of Property Liens in North Carolina

The following is a breakdown of how to file a construction lien in North Carolina:

The claimant must send a 'Notice to Lien' within 15 days from the first furnishing of labor and/or materials.

Next, the property owner may fill the lien form with information about the owner, the property, work done or supplies provided, dates of work, and their details. Claimants must input the information correctly as the state does not allow amendment of lien documents.

The next step is to file the lien with the county Office of the Clerk of Superior Court, serving a copy on the owner and the general contractor if the claimant is a subcontractor. The filing deadline is 120 days from the last work/supply date.

Before enforcing the lien, the claimants must send a Notice of Intent to Foreclose to warn the owner.

Easements and Covenants

Another thing you will find in property records is easements. These are most often included in deeds. They describe any third-party rights to the property, such as a wireless company with towers installed on a person's private land. The wireless company can access the property whenever needed to maintain the towers without asking the owner. Easements like these are passed along from owner to owner.

Covenants, on the other hand, dictate how the land can be used. You often find these in condo developments and communities with shared expenses or services. Covenants are included with closing documents and specify things you can and cannot do. For example, you cannot have a pet in some condo developments. If you violate these rules, you could be fined, or the condo association could foreclose on your property, sell your home out from under you, and evict you.

Plats and Surveys

Plats and surveys are both types of maps showing real property boundaries. Plats include the boundaries of other neighboring properties, but surveys focus only on the property in question. Surveys are also used in boundary disputes and other situations where actual, legal boundaries are needed.

The following are types of surveys individuals may get in North Carolina:

• Construction Staking Survey - A construction staking survey is conducted throughout the project's construction phase. It guarantees that construction activities are carried out according to the approved plans and specifications.
• Boundary Survey - A boundary survey defines a piece of land's property lines and corners. They are frequently used in real estate transactions, settling disputes, and defining new boundaries.
• Mortgage Survey - A mortgage survey, also known as a loan survey or plot plan, is a simplified survey performed to suit the needs of a mortgage lender. It focuses on the property boundaries, improvements, and any encroachments or easements that may influence the value or usage of the land.
• Topographical Survey - A topographical survey maps and describes an area's natural and artificial characteristics. It measures and documents elevations, contours, slopes, vegetation, water bodies, and other geographical features. Topographic surveys are frequently used for site planning, engineering design, construction projects, and other purposes.

Property Descriptions and Boundaries in North Carolina

Property descriptions are vital information found in property records. The legal property description clearly defines where the property is and how to find it. It may include things like landmarks, bodies of water, and other defining characteristics.

Surveys are vital for determining a piece of real property's exact boundaries and land measurements. You have probably seen surveyors out in your area with strange equipment.

Surveys come in very handy during boundary disputes. Many disputes end up in court, and a judge must hear both sides, including expert witness testimony from surveyors, to determine the outcome.

Foreclosures

Before investing or buying, you must be on the lookout for foreclosures. They can complicate a sale. Investors may be okay with it because they could pick up a property for far less than the asking price, but regular buyers may want to steer clear.