Acquisition of Property by Paying Back Taxes in North Carolina

Paying taxes in order to acquire property is one aspect of a legal concept known as "adverse possession." Adverse possession may allow a non-owner to acquire property by taking certain actions typical of an owner, such as occupying the land or paying taxes. However, North Carolina law does not offer this option. Those with specific questions about North Carolina law should consult a legal professional.

Adverse Possession

Adverse possession is a long-standing doctrine, founded in the idea that a property owner who doesn't pay attention to the property should perhaps lose it to a more attentive party. Under adverse possession, if the owner fails to evict a trespasser, or allows the trespasser to perform certain ownership functions for a period of time determined by state law, the trespasser has the right to take ownership of the property. Typically, the party who lays claim to the property can bring an action known as "quiet title" to determine the legal ownership of the property. Adverse possession is also known more colloquially as "squatter's rights."

Payment of Taxes

Payment of property taxes is one way that an adverse possessor can stake his claim on property that he doesn't own. Many states allow payment of taxes for a certain period, often 10 or 20 years, to serve as evidence of the right of ownership. However, in many states, payment of taxes alone will not be sufficient. Most states also require actual physical occupation of the property by the adverse possessor.

North Carolina Taxes

North Carolina's adverse possession requirements exist in the state's general statutes, but the law makes no mention of payment of property taxes. Therefore, payment of back taxes in North Carolina does not help to establish an adverse possession claim. However, depending on circumstances, if a non-owner pays the taxes on a property, he may have the right to reimbursement from the owner.

North Carolina Possession

Although payment of taxes won't establish adverse possession in North Carolina, there are other ways to adverse possess the property. North Carolina has a 20-year possessive period, and that period can be shortened significantly, to seven years, if the adverse possessor has "color of title." Color of title means that the adverse possessor's claim on the property results from some document or legal instrument that's proven invalid or legally inoperative. For instance, if someone buys property and later finds out that the deed was defective, he may still have become the owner of the property in the meantime by possessing the property under color of title for seven years.

References

• “Property (6th Edition)”; James E. Krier et al.; 2006
• JRank: Adverse Possession Laws
• Onecle: North Carolina General Statutes, Chapter 1, Sections 1-35 - 1-41