SB 217 — Real Property-Tenancy in Common Changes.

FILED SENATE GENERAL ASSEMBLY OF NORTH CAROLINA MarSESSION 7, 2023 S.B.S 1 SENATE BILL 217 Short Title:

217 SESSION 2023 PRINCIPAL CLERK S D SENATE BILL DRS45092-MQ-13 Short Title:

Rules and Operations of the Senate March 8, 2023 A BILL TO BE ENTITLED AN ACT TO CODIFY THE LAW OF TENANCY IN COMMON IN THIS STATE, AS RECOMMENDED BY THE NORTH CAROLINA BAR ASSOCIATION.

Chapter 41 of the General Statutes is amended bybyadding adding a new Article to read:

*DRS45092-MQ-13**S217-v-1* General Assembly Of North Carolina Session 2023 (2) Theinterestsofthetenantsincommoninthepropertymaybeequalorunequal percentages.

(c) Aninterestin propertyheldbytenantsin commonwhosubsequentlymarryeachother remains held as tenancytenancyin incommonunlessbyseparateinstrument commonthe unlessbyspouses separateinstrumentconveytheinterest thespouses convey theinterest to themselves to create a tenancy by the entirety or a joint tenancy with right of survivorship.

Page 2 DRS45092-MQ-13Senate Bill 217-First Edition General Assembly Of North Carolina Session 2023 (b) The possession of one tenant in common is the possession of the cotenant.

Nothing in this Article shall be deemed to prohibit tenants in common from entering into an agreement with respect to the property, including possession, sharing rents and profits, reimbursement related to theproperty,andtheproperty,andtheauthorityofatenant theauthority ofatenant in common to bindacotenant.

A tenant in common claiming ouster by a cotenant maymaybring bring an action for ejectment, but not for partition, seeking to compel the cotenant in possession to admit the ousted tenant in common into possession.

(a) A tenant in common without color of title may acquire title to the cotenant's interest inthepropertyby20years'adversepossessionasprovidedbyG.S.inthepropertyby20 years'adversepossessionasprovidedbyG.S.

(2) If a tenant in common purports to conveyconveythe the whole estate, all of the following apply:

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(2) If a tenant in common purports to conveyconveythe the whole estate, all of the following apply:

(3) If a grantee receives a deed purporting to conveyconveythe the whole estate in a judicial proceeding to sell the interest of a tenant in common, including a sale for partition, a tax foreclosure, or a sale to pay debts, the deed is deemed color of titleand thegrantee can acquiretitleas against all tenants in commonbyseven years' adverse possession.

(b) If a third party, with collusion, acting as agent of one of the tenants in common, acquires title to property upon a sale of the property to pay the debt for which all of the tenants in common areliable and subsequentlysubsequentlyconveys conveys that titleto that tenant in common, thetitleinures to the benefit of all of the tenants in common.

(c) If a third party, without collusion, acquires title to the property upon a sale of the propertyto paypayadebt adebt for which all of thetenants in common areliable and subsequentlysubsequentlyconveys conveys that title to one of the tenants in common, that tenant in common takes title to the propertypropertyin in that tenant in common's own right, valid as against the cotenants of that tenant in common.

(d) A tenant in common who receives an interest in the property because of the death of an ancestor holding an interest in the property may acquire the ancestor's interest in the property Page 4 DRS45092-MQ-13Senate Bill 217-First Edition General Assembly Of North Carolina Session 2023 upon a sale to pay the debt of the deceased ancestor secured by the ancestor's interest in the property.

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