BIC TIP #1170: NC Two to Buy, Two to Sell?

It is the age-old adage in North Carolina real estate: one to buy, two to sell. Stephen Long builds on the previous day’s tip to explain what that really means for married couples, and why, in practice, it often looks more like two to buy and two to sell.

One to Buy

A married person in North Carolina can purchase real property without their spouse. As Stephen puts it, if he qualifies for the loan or has the means, he can absolutely go buy a property on his own. (Assuming, he jokes, his wife would allow it.) The purchase itself does not require the spouse to sign the contract.

Two to Sell

Selling is a different story. Because of North Carolina’s marital interest laws, when a married person goes to sell real property, both spouses have to sign, even if only one of them bought it and even if only one name is on the deed.

That is why listing agents need to ask about marital status at the listing appointment and get both spouses involved early. A missing spouse at the closing table is not a small hiccup. It can stop the sale.

The Mortgage Twist

Here is where it gets interesting. If the buyer is getting a mortgage in any capacity, the lender is typically going to require both spouses to sign the deed of trust at the time of purchase. So for a financed purchase, the non-buying spouse usually ends up at the closing table anyway.

Stephen sums it up neatly: it is really one to buy with cash, two to sell. Otherwise, it is two to buy and two to sell. If your buyer has questions about how this affects their loan, their lender and the closing attorney are the right people to explain the details.

The Practical Takeaway

Remember the full version of the rule. A married buyer paying cash can buy alone. A married buyer with a mortgage will usually need the spouse to sign the deed of trust. And a married seller always needs both spouses to sell. Set those expectations early and nobody gets blindsided at closing.