North Carolina · land contract
North Carolina land contract, explained.
A plain-English guide to land contract (also called contract for deed) in North Carolina — statute, recording, default remedies, interest caps, and where deals actually happen.
N.C. Gen. Stat. §§ 47H-1 to 47H-8 (Contracts for Deed Act, 2010)
Mandatory: under N.C. Gen. Stat. § 47H-3, the seller must record the contract for deed with the county Register of Deeds within 5 business days of execution. Failure entitles buyer to cancel and recover all payments.
Foreclosure-like. Under N.C. Gen. Stat. § 47H-6, seller must give 30-day notice and right to cure; if buyer has paid 25% or more of purchase price, seller must foreclose under Chapter 45. Otherwise, cancellation procedure available with payment refund obligations.
Is land contract legal in North Carolina?
North Carolina statutorily recognizes and regulates 'contracts for deed' for residential property under Chapter 47H, enacted in 2010 to provide consumer protections.
How do you record a land contract agreement in North Carolina?
Mandatory: under N.C. Gen. Stat. § 47H-3, the seller must record the contract for deed with the county Register of Deeds within 5 business days of execution. Failure entitles buyer to cancel and recover all payments.
What happens if the buyer defaults?
Foreclosure-like. Under N.C. Gen. Stat. § 47H-6, seller must give 30-day notice and right to cure; if buyer has paid 25% or more of purchase price, seller must foreclose under Chapter 45. Otherwise, cancellation procedure available with payment refund obligations.
What is the maximum interest rate?
8% on most consumer transactions (N.C. Gen. Stat. § 24-1.1); higher rates for home loans of $300,000+ and various exemptions; criminal usury threshold separate.
What disclosures are required?
Under § 47H-2, mandatory written contract with specified terms (legal description, price, interest rate, payment schedule, encumbrances, tax/insurance allocation); North Carolina Residential Property Disclosure Statement (Ch. 47E); lead-based paint (federal).
Who's protected — buyer vs. seller
Buyer protections
Strong: mandatory recording; mandatory written contract with statutory contents; right to cure; foreclosure required after 25% paid; right to cancel for noncompliance; right to record contract themselves if seller fails.
Seller protections
Statutory cancellation procedure pre-25% threshold; foreclosure remedy thereafter; retention of reasonable rent and damages.
Where in the state do these deals happen?
Eastern NC rural and coastal land; mobile home/land combinations; Appalachian western counties; less common for urban Charlotte/Raleigh due to statutory burden.
North Carolina cities
Per-city market notes for land contract buyers and sellers.
Notable case law
Brannock v. Fletcher, 271 N.C. 65 (1967) (pre-statute); statute now controls residential.
Looking at a North Carolina deal?
Send the parcel and the terms — we'll walk through whether land contract fits, how to record it, and what the cure period looks like if things go sideways.
Talk to WyattEducational content only. Statute citations are public-record research, not legal advice. North Carolina contracts and remedies are fact-specific — consult a licensed North Carolina real-estate attorney before signing anything.