Key Takeaways
- North Carolina is an attorney state - attorneys typically conduct closings and handle title work
- The closing disclosure must be provided to the buyer at least 3 business days before closing per federal law
- North Carolina uses general warranty deeds as the standard for property transfers
- Property taxes in NC are paid in arrears and prorated at closing based on calendar year
- Deeds are recorded in the Register of Deeds office in the county where the property is located
Last updated: January 2026
North Carolina Closing Procedures
North Carolina has specific requirements and traditions for real estate closings.
Who Conducts Closings
North Carolina is an attorney state for real estate closings:
| Role | Responsibility |
|---|---|
| Closing Attorney | Conducts closing, prepares documents |
| Title Company | May provide title insurance (works with attorney) |
| Real Estate Broker | Coordinates, attends, but does not conduct |
| Lender | Provides loan documents and funding |
Attorney's Role
The closing attorney typically:
- Examines title and provides title opinion
- Prepares the deed and closing documents
- Conducts the closing meeting
- Disburses funds after closing
- Records the deed
Pre-Closing Requirements
TRID Closing Disclosure (Federal)
| Document | Timing |
|---|---|
| Loan Estimate | Within 3 business days of application |
| Closing Disclosure | At least 3 business days before closing |
| Changes Requiring New 3-Day Wait | APR increase >0.125%, loan product change, prepayment penalty added |
Title Examination
The attorney examines:
- Chain of title
- Outstanding liens and encumbrances
- Easements and restrictions
- Property tax status
- HOA assessments
Types of Deeds in North Carolina
General Warranty Deed
The standard deed in North Carolina:
- Warrants title against all defects
- Guarantees right to convey
- Provides maximum buyer protection
- Most commonly used in residential sales
Special Warranty Deed
Provides limited protection:
- Warrants only during seller's ownership
- Does not cover prior owner's actions
- Common in foreclosures and bank sales
Quitclaim Deed
Provides NO warranty:
- Transfers only grantor's interest (if any)
- No guarantee of clear title
- Used to clear title issues, family transfers
Prorations at Closing
Property Taxes (Paid in Arrears)
North Carolina property taxes are paid in arrears:
| Detail | Calculation |
|---|---|
| Tax Year | Calendar year (January 1 - December 31) |
| Tax Bills | Mailed in August/September |
| Due Date | January 5 of following year |
| Proration | Based on closing date |
Proration Calculation
| Party | Responsibility |
|---|---|
| Seller | January 1 through day BEFORE closing |
| Buyer | Closing day through December 31 |
| Result | Seller credits buyer at closing |
Other Prorations
| Item | How Prorated |
|---|---|
| HOA Dues | Depending on when paid |
| Rent (if rental property) | Buyer credited for remainder of month |
| Interest | Based on loan terms |
| Fuel Oil/Propane | Buyer credits seller for remaining |
Recording
Where to Record
Deeds are recorded with the Register of Deeds in the county where the property is located.
Recording Requirements
| Item | Detail |
|---|---|
| Recording Fee | Per page |
| Excise Tax | $1 per $500 of purchase price |
| Who Pays | Typically seller (negotiable) |
| Priority | Recording establishes priority |
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Test Your Knowledge
Who typically conducts real estate closings in North Carolina?
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Test Your Knowledge
How are property taxes typically paid in North Carolina?
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Test Your Knowledge
Where are deeds recorded in North Carolina?
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