North Carolina

North Carolina — Contract for Deed / Installment Land Contract

Legal information, not legal advice. Verify against the cited primary sources before acting. Statutes in this area are frequently amended. Last verified: 2026-06-08.

North Carolina is a statute-plus-equity jurisdiction. Since 2010 the instrument has had a dedicated consumer-protection chapter — G.S. Chapter 47H, “Contracts for Deed” (S.L. 2010-164, amended by S.L. 2015-178) — that defines the instrument, prescribes mandatory contents and a completed Chapter 47E residential property disclosure, imposes a five-business-day recording duty, gives the buyer a three-business-day right to cancel, caps late fees at 4%, and channels default through a statutory notice-of-default-and-intent-to-forfeit with a cure period of not less than 30 days. Critically, Chapter 47H does not abolish the buyer’s equitable right of redemption: G.S. 47H-2(e)–(f) makes any instrument extinguishing redemption “executed as a condition of the transaction or prior to a default” ineffective, and long-standing North Carolina case law — brannock-v-fletcher-1967 and lamberth-v-mcdaniel-1998 — treats the vendor-vendee relationship as mortgagee-mortgagor and lets a defaulting buyer redeem by tendering the balance, a right that cannot be waived at signing. The result is a hybrid regime: Chapter 47H authorizes a forfeiture procedure, but the buyer’s un-waivable equity of redemption means the seller cannot achieve a clean strict forfeiture and may have to allow redemption or pursue a judicial route. See forfeiture-vs-foreclosure.

0. Identity & Terminology

• In-state name(s): “Contract for deed” is the statutory umbrella term, expressly defined to include any instrument “denominated a ‘contract for deed,’ ‘installment land contract,’ ‘land contract,’ ‘bond for title,’ or any other title or description” in which the seller agrees to sell and the buyer pays in five or more payments (exclusive of down payment) while the seller retains title as security. — G.S. 47H-1(1)
• Scope note (who Chapter 47H protects): “Property” under 47H is limited to (i) NC real estate with a structure “designed principally for occupancy of from one to four families” that is or will be occupied by the purchaser as the purchaser’s principal dwelling, or (ii) a manufactured home (G.S. 143-149.9) occupied as the buyer’s principal dwelling **if the price is ≥ $5,000\ast \ast .Vacantland,investor/non-occupantdeals,commercialparcels,andsub-$5,000 manufactured homes fall outside Chapter 47H and are governed by common-law contract and the mortgage-analogy case law (Brannock). — G.S. 47H-1(5)
• Recognition: Statutory and common law. Chapter 47H governs covered residential/ manufactured-home dwellings; the common-law mortgage analogy (Brannock; Boyd v. Watts, 316 N.C. 622) governs the rest and supplements 47H.
• Statutory home: G.S. Chapter 47H §§ 47H-1 through 47H-8 — ncleg.net Chapter 47H
• Remedy regime: hybrid — Chapter 47H authorizes a statutory forfeiture procedure (47H-3, 47H-4) for covered dwellings, but the buyer’s equity of redemption survives and cannot be pre-waived (47H-2(e)–(f); brannock-v-fletcher-1967; lamberth-v-mcdaniel-1998), so strict forfeiture is unavailable and the seller may be forced to permit redemption or proceed judicially. See forfeiture-vs-foreclosure.

1. Formation & Mandatory Disclosures

• Statute of frauds: Writing required. Every contract for deed “shall be evidenced by a contract signed and acknowledged by all parties” containing all agreed terms; the seller must deliver an exact copy with all required disclosures at the time the purchaser signs. — G.S. 47H-2(a). NC’s general statute of frauds for land contracts is G.S. 22-2.
• Mandatory disclosures / required contents (present — robust): G.S. 47H-2(b) mandates the contract contain at least: full names/addresses of all parties (1); date signed by each party (2); legal description and physical address (3); sales price (4); separate service charges/fees (5); down payment (6); principal balance (= (4)+(5) − (6)) (7); amount, due date, and total number of installments (8); interest rate on the unpaid balance and method of determining it (9); a conspicuous statement of any pending public- agency order or other public-record matter adversely affecting the property of which the seller has actual knowledge (10); a statement of the buyer’s rights to cure a default (11); allocation of responsibility for repairs, taxes, hazard/flood insurance, HOA dues, and other charges (12); a no-penalty prepayment/acceleration right (13, subject to a wrap deed-of- trust prepayment-penalty carve-out under 47H-6); a completed Chapter 47E residential property disclosure statement in which the seller may not select “No Representation” (14a); and a statement of current real-estate taxes, HOA dues, and special assessments, and any delinquent amounts (15). — G.S. 47H-2(b); Chapter 47E
  • Lien/wrap disclosure (separate, prescribed form): If the property is encumbered by a deed of trust/mortgage, the seller must give a separate written disclosure in 14-point boldface capital letters stating: “THIS PROPERTY HAS EXISTING LIENS ON IT. IF THE SELLER FAILS TO MAKE TIMELY PAYMENTS TO THE LIEN HOLDER, THE LIEN HOLDER MAY FORECLOSE ON THE PROPERTY, EVEN IF YOU HAVE MADE ALL YOUR PAYMENTS.” — G.S. 47H-6(b)
  • Three-day-cancellation notice (prescribed, conspicuous): A conspicuous statement, not less than 14-point boldface type, immediately above the purchaser’s signature, that the buyer may cancel until midnight of the third business day after execution or delivery, whichever is later. — G.S. 47H-2(b)(17)
  • Form prescribed: No single state contract form is mandated, but the contents (47H-2(b)), the 47E disclosure, the 47H-6(b) lien warning, and the 47H-2(b)(17) cancellation notice are all mandatory and partly prescribed as to wording/typeface.
  • Penalty for omission: Chapter 47H provides buyer remedies, not a per-day fine. G.S. 47H-8 lets the purchaser sue for damages, rescission, and declaratory/equitable relief for any Chapter 47H violation, and these remedies are cumulative to other law/ equity. A 47H-6 title/lien-disclosure violation specifically entitles the buyer to damages or rescission with return of all payments (seller offsetting fair rental value
    • beyond-normal-wear damage). — G.S. 47H-8, G.S. 47H-6(c)
• Recording requirement (present, hard deadline): The seller must cause a copy of the contract or a “Memorandum of a Contract for Deed” to be recorded with the register of deeds of the county where the property lies within five business days after the contract is signed and acknowledged by both parties. A recorded memorandum must contain at minimum the parties’ names and signatures, a property description, and the (b)(8) and (b)(11) time periods. The seller pays the recording fee unless agreed otherwise. — G.S. 47H-2(d)
• Right to cancel (cooling-off): Buyer may cancel until midnight of the third business day after execution or delivery of a conforming copy, whichever is later. On cancellation the seller must, within 10 days of receiving the cancellation notice, return all payments/property, less an offset for fair rental value of the buyer’s possession plus beyond-normal-wear damage. — G.S. 47H-2(c)
• Annual accounting statement (present): The seller must provide a statement of account at least once every 12-month period for the contract term, stating: amount paid; remaining amount owed; payments remaining; amounts paid to taxing authorities; amounts paid to insure the property; an accounting of any insurance proceeds applied; and, if the property is encumbered under 47H-6, the outstanding balance of the underlying loan. — G.S. 47H-5
• Prepayment: Allowed without penalty by statute — the contract must grant the buyer the right to accelerate or prepay without penalty, with a narrow carve-out: if a permitted underlying deed of trust (47H-6) carries a lender prepayment penalty, the contract may require the buyer to compensate the seller for that penalty. — G.S. 47H-2(b)(13)
• Usury / interest cap: General NC cap (G.S. 24-1.1(a)): for principal ≤ $25,000\ast \ast ,themaxcontractrateisthe\ast \ast greaterof16under24-1.1(c));forprincipal\ast \ast >$25,000, any rate the parties agree is permitted. A knowing usurious charge forfeits all interest (G.S. 24-2). Most owner-financed home CFDs exceed $25,000 and thus face no rate cap, but watch the high-cost home loan rules (G.S. 24-1.1E) for points-and-fees/rate triggers. — G.S. 24-1.1, G.S. 24-2
• Late fees (capped): No seller may charge a late-payment charge exceeding 4% of the past-due payment, and only on payments more than 15 days past due. — G.S. 47H-7

2. Buyer’s Equitable Interest

• Equitable title passes; equitable conversion recognized. North Carolina treats the installment-land-contract buyer as holding equitable title, with the seller retaining legal title as security — “the relation between vendor and vendee… is substantially that subsisting between mortgagee and mortgagor, and governed by the same general rules.” — brannock-v-fletcher-1967 (Brannock v. Fletcher, 271 N.C. 65, 155 S.E.2d 532 (1967)). See equitable-conversion.
• Recordable: Yes — and recording (full contract or memorandum) is mandatory for the seller within five business days (47H-2(d)). Under NC’s Connor Act, a “contract to convey” is “valid to pass any property interest as against lien creditors or purchasers for valuable consideration… [only] from the time of its registration,” so recording also protects the buyer’s equitable interest against the seller’s later creditors/buyers. — G.S. 47-18, G.S. 47H-2(d)
• Insurable: The buyer’s equitable interest is generally insurable; NC title companies issue land-contract/vendee endorsements (see §5). (No primary statute mandates issuance — practice point; see needs_verification.)
• Risk of loss: Contract-governed under 47H-2(b)(12), which requires the contract to allocate responsibility for repairs and hazard/flood insurance; absent contrary terms the equitable owner in possession bears it. The annual statement (47H-5(6)) contemplates the seller receiving and accounting for insurance proceeds where the seller collects them.
• Improvements and waste: The buyer in possession enjoys use and improvements; on any cancellation/forfeiture the seller’s offset is limited to fair rental value + beyond-normal- wear damage (47H-2(c); 47H-6(c)), not the cost of improvements.

3. Default & Remedies → see forfeiture-vs-foreclosure

• Primary remedy: Statutory forfeiture procedure (covered dwellings) constrained by an un-waivable equity of redemption — i.e., election between (a) the 47H-3/47H-4 forfeiture track and (b) treating the deal as a mortgage and allowing/compelling redemption (Brannock; Lamberth). For property outside Chapter 47H, the seller’s common-law options include suit to quiet title, an action to declare the contract at an end, damages, or specific performance — but the mortgage analogy still gives the buyer redemption rights.
• Forfeiture available? Yes, but only by the statutory procedure and never “strictly.” 47H-3: a buyer’s rights “shall not be forfeited except as provided in this Chapter”; there must be a breach of an express obligation, the contract must authorize forfeiture, and the buyer must first receive a 47H-4 notice of default and intent to forfeit with a chance to cure. A timely tender of cure reinstates the contract. — G.S. 47H-3
• Substantial-equity bar: Functionally yes — by equity-of-redemption, not a paid-percentage threshold. NC has no 20%/5-year-style statutory equity threshold (unlike Ohio/Minnesota). Instead the protection is categorical: the equity of redemption cannot be waived at signing, and a forfeiture/“treat-past-payments-as-rent” clause is subject to redemption even after default and surrender. The defaulting buyer may redeem by tendering the balance due plus interest (and taxes) and compel conveyance. — lamberth-v-mcdaniel-1998 (Lamberth v. McDaniel, 131 N.C. App. 319, 506 S.E.2d 295 (1998)); brannock-v-fletcher-1967; G.S. 47H-2(e)–(f)
• Statutory cancellation / notice procedure (47H-4):
  • Notice of default and intent to forfeit must contain: the seller’s (and agent/attorney’s) name, address, phone (1); a description of the contract including the original parties (2); the property’s physical address (3); a description of each default (4); a statement that the contract will be forfeited if all defaults are not cured by a stated date (5); an itemized statement (or reasonable estimate) of all money in default and, for non-monetary defaults, the action required to cure (6); and any additional contract-required info (7).
  • Cure period: the cure date must be not less than 30 days after the notice is served (or any longer period the contract/agreement specifies). — G.S. 47H-4(a)(5)
  • Runs from: service of the notice.
  • Notice form prescribed: Yes (contents enumerated in 47H-4(a)).
  • Service method: delivered to the purchaser by hand or by any manner authorized in G.S. 1A-1, Rule 4 (the civil-procedure service rules — e.g., certified/registered mail, return receipt; sheriff; designated delivery service). — G.S. 47H-4(b), G.S. 1A-1, Rule 4
  • Reinstatement right: Yes — a timely tender of cure reinstates the contract for deed. — G.S. 47H-3
• Effect of forfeiture (how redemption is extinguished): Even after a proper 47H-4 notice and failure to substantially cure, the buyer’s equitable right of redemption is extinguished only by (1) a mutual termination executed by the parties and recorded, or (2) a final judgment or court order terminating the buyer’s rights, a certified copy recorded under G.S. 1-228. No instrument executed as a condition of the transaction or before default can extinguish the equity of redemption. — G.S. 47H-2(e)–(f), G.S. 1-228
• Judicial route required when: the buyer does not voluntarily sign a recorded mutual termination. Because pre-default waivers of redemption are void and redemption survives default (Lamberth), a seller who cannot get a mutual termination must obtain a court judgment to extinguish redemption (47H-2(e)(2)) — i.e., a foreclosure-like judicial proceeding rather than a self-help forfeiture.
• Acceleration enforceable? Conditional — the statute does not prescribe acceleration; any acceleration is read against the mandatory ≥30-day cure, the reinstatement-on-cure rule, and the un-waivable redemption. Prepayment/acceleration by the buyer is a protected right (47H-2(b)(13)). (Seller-side acceleration treatment — see needs_verification.)
• Restitution offset on forfeiture/cancellation (required): On rescission/cancellation the seller’s recovery is capped at fair rental value of the buyer’s possession + beyond-normal-wear damage — no windfall retention of payments. — G.S. 47H-2(c), G.S. 47H-6(c)
• Seller’s other remedies: quiet-title action, action to declare the contract at an end, damages, or specific performance (common-law menu recognized in the NC case law, e.g. Boyd v. Watts, 316 N.C. 622); summary ejectment is unavailable because the defaulting buyer is not a tenant (marantz-piano-co-v-kincaid-1993).
• Buyer grace / redemption: the ≥30-day 47H-4 cure plus the un-waivable equity of redemption (redeem by tendering balance + interest + taxes; Lamberth) are the controlling buyer protections.

▸ For Sellers / Operators — This is the deal-defining module. Two facts to know cold in North Carolina: (1) You cannot strictly forfeit. Chapter 47H authorizes a forfeiture procedure, but G.S. 47H-2(e)–(f) voids any pre-default redemption waiver and lamberth-v-mcdaniel-1998 lets a defaulted buyer redeem by paying the balance — a clause calling past payments “rent” is unenforceable. To actually clear title you need a recorded mutual termination or a court judgment (47H-2(e)). (2) Run the 47H-4 notice exactly: serve a notice of default and intent to forfeit (hand delivery or Rule 4 service) giving not less than 30 days to cure, itemizing every default — a timely cure reinstates the contract (47H-3). Up front, comply or face a 47H-8 rescission/damages claim: record within five business days (47H-2(d)), include the completed 47E disclosure (no “No Representation,” 47H-2(b)(14a)), give the 14-pt lien warning if there’s an underlying loan (47H-6(b)), put the 3-day-cancel notice above the signature (47H-2(b)(17)), keep late fees ≤ 4% (47H-7), allow penalty-free prepayment (47H-2(b)(13)), and send the annual statement (47H-5). Confirm your federal threshold exposure (§4).

▸ For Buyers — You hold equitable title and are treated as a mortgagor (brannock-v-fletcher-1967). Your 3-day cancel (47H-2(c)), your ≥30-day cure (47H-4), and above all your un-waivable equity of redemption (redeem by tendering the balance — lamberth-v-mcdaniel-1998) are the protections that matter most on default; you cannot be summarily evicted (you are not a tenant — marantz-piano-co-v-kincaid-1993).

3b. Remedies — Advanced

• Election of remedies: Applies at common law — the seller chooses among declaring the contract at an end, quiet title, damages, or specific performance (Boyd; Brannock), but every path remains subject to the buyer’s redemption right. Chapter 47H’s 47H-8 expressly makes buyer remedies cumulative.
• Deficiency after forfeiture: No deficiency windfall. On cancellation/rescission the seller is limited to fair rental value + damage offsets (47H-2(c); 47H-6(c)); past payments are not retained as liquidated damages. (Whether a seller may separately sue for an unpaid-balance deficiency after a judicial redemption/termination — see needs_verification.)
• Anti-forfeiture / equity relief: Strong and categorical. NC supplies it both by statute (47H-2(e)–(f) voids pre-default redemption waivers) and by equity (lamberth-v-mcdaniel-1998: “treat-payments-as-rent” forfeiture clause subject to the equity of redemption, which cannot be waived by contract at the time of the agreement; brannock-v-fletcher-1967: redemption survives default and surrender of possession).
• Ejectment vs. eviction path: A defaulting CFD buyer is an equitable owner, not a tenant, so summary ejectment (Chapter 42 / G.S. 42-26) is unavailable; the seller must use the 47H forfeiture-with-redemption process and, failing a mutual termination, a judicial proceeding to extinguish redemption. — marantz-piano-co-v-kincaid-1993 (Marantz Piano Co. v. Kincaid, 108 N.C. App. 693, 424 S.E.2d 671 (1993))
• Quiet title / judgment after cancellation: To extinguish redemption without a mutual termination, the seller obtains a final judgment/court order terminating the buyer’s rights and records a certified copy under G.S. 1-228 with the register of deeds. — G.S. 47H-2(e)(2), G.S. 1-228
• Forfeited-payments treatment: A clause recharacterizing past payments as rent/liquidated damages on default is unenforceable to defeat redemption — lamberth-v-mcdaniel-1998.
• Intervening seller-lien risk to buyer: Real. 47H-6 permits an underlying mortgage only under narrow conditions and forces the bold 14-pt lien warning (47H-6(b)); if the seller stops paying, the lienholder may foreclose even though the buyer is current. The recorded contract/ memorandum (47H-2(d)) plus the Connor Act (G.S. 47-18) protect priority against later seller creditors, but a pre-existing recorded deed of trust outranks the buyer.

4. Federal Overlay (as applied in-state) → see dodd-frank-seller-financing, safe-act-mlo

• Dodd-Frank exposure: A Chapter 47H contract for deed is residential mortgage credit on a 1–4-family principal dwelling, so the dodd-frank-seller-financing seller-financer exclusions apply: the ≤ 3-property / 12-month safe harbor (with ATR conditions) and the ≤ 1-property natural-person safe harbor (no balloon, fixed or qualifying-ARM) determine whether the seller must satisfy ATR/loan-originator rules. North Carolina adds no state exemption that displaces the federal floor; a repeat NC operator selling multiple dwellings on terms can lose the safe harbor. — see dodd-frank-seller-financing
• SAFE Act / MLO licensing: NC implements the federal SAFE Act through the NC SAFE Act, G.S. Chapter 53, Article 19B (Mortgage Origination), administered by the NC Commissioner of Banks (NCCOB). A natural person making an occasional seller-financed sale of their own dwelling is generally outside MLO licensing, but “in the business” sellers can cross into licensing. Confirm the current NCCOB exemption posture each deal. — G.S. Ch. 53, Art. 19B; NCCOB; see safe-act-mlo
• CFPB enforcement notes: North Carolina residential land contracts sit within the national predatory-CFD scrutiny wave (Harbour-Portfolio-type bulk operators). Chapter 47H’s mandatory recording, 47E disclosure, lien warning, late-fee cap, annual statement, and un-waivable redemption are the state-law guardrails; federal UDAAP/ATR exposure layers on for repeat sellers.
• State consumer-protection overlay: Chapter 47H is itself the consumer-protection statute (buyer remedies in 47H-8). NC’s UDTPA, G.S. 75-1.1, can also reach a seller “in commerce,” but 47H-8 expressly exempts “an individual homeowner selling his or her primary residence directly to a buyer” from G.S. 75-1.1 liability. — G.S. 47H-8, G.S. 75-1.1

5. Title, Recording & Wraps → see garn-st-germain-due-on-sale, wrap-around-mortgage

• Memorandum recording (permitted; deadline): The seller may record either the full contract or a “Memorandum of a Contract for Deed,” but must do so within five business days of full execution (47H-2(d)). Under the Connor Act, an unrecorded “contract to convey” does not bind later lien creditors/purchasers, so recording is both a statutory duty and a priority necessity. — G.S. 47H-2(d), G.S. 47-18
• Garn-St. Germain due-on-sale: A contract for deed transferring possession/equitable ownership is a “sale or transfer” that can trigger a due-on-sale clause in the seller’s underlying loan; the federal garn-st-germain-due-on-sale residential exemptions (e.g., transfer into an inter vivos trust with the borrower remaining a beneficiary) are narrow and generally do not shelter a true CFD sale to a third-party buyer. The 47H-6(b) lien warning exists precisely because the lienholder may accelerate/foreclose. — see garn-st-germain-due-on-sale
• Underlying-mortgage / wrap (restricted): Permitted only under G.S. 47H-6’s narrow conditions — the encumbrance must be in the seller’s name and either (1) agreed to in writing by the buyer as a condition of an improvement loan, (2) placed pre-contract by a licensed general contractor / manufactured-home dealer / real-estate broker who keeps paying it, or (3) placed pre-contract by a non-licensee where the lien attaches only to the sold property and the seller keeps paying. Disclosure required: yes — the 14-pt bold lien warning (47H-6(b)). Violation → buyer damages or rescission (47H-6(c)). — G.S. 47H-6
• Deed delivery mechanism: Seller retains legal title as security and conveys at payoff; Chapter 47H does not mandate escrow of the deed (escrow permitted by agreement). 47H-6(a) bars selling on contract for deed if the seller does not hold title.
• Marketable title at payoff: A contract/warranty matter at conveyance; the buyer’s recorded interest and equitable ownership support a marketability claim, and 47H-6 limits permissible encumbrances clouding delivery.
• Title insurance: Available to the buyer in practice (NC title agencies insure vendee/equitable interests); the recorded contract/memorandum supports insurability. (No mandating statute — see needs_verification.)
• Seller death / bankruptcy effect: Because the seller holds legal title as security, seller death or bankruptcy can cloud delivery; the recorded contract + the buyer’s equitable ownership (Brannock) protect the buyer’s priority, and the buyer may compel conveyance on payoff / cure seller defaults.

6. Tax Treatment

• IRC §453 installment reporting: Available for an NC contract-for-deed sale of non-dealer real property — the seller reports gain as principal is received (dealer property is excluded from §453). — see irc-453-installment-sale; 26 U.S.C. § 453
• Property-tax responsibility: Contract-governed — 47H-2(b)(12) requires the contract to allocate taxes/insurance/HOA, and 47H-2(b)(15) requires disclosure of current and delinquent amounts; by default the equitable owner in possession pays unless otherwise agreed. NC lists/taxes real property to the owner as of January 1 under the Machinery Act (G.S. 105-285); the recorded contract puts the buyer’s interest on record. — G.S. 47H-2, G.S. 105-285
• Homestead / elderly-disabled exclusion: NC’s property-tax relief (e.g., the elderly/disabled homestead exclusion, G.S. 105-277.1) turns on ownership and occupancy as a permanent residence; an equitable owner in possession under a recorded contract is generally treated as the owner-occupant (verify current assessor practice — see needs_verification). — G.S. 105-277.1
• Transfer / excise (documentary stamp) tax: NC’s excise tax on conveyances (G.S. 105-228.28 et seq.; $1per$500 of consideration) is keyed to a deed “conveying interest in real property” and is paid when the deed is recorded. Recording a contract for deed or memorandum is generally not the taxable conveyance — the excise tax falls due when the warranty deed is recorded at payoff (verify county register-of-deeds practice — see needs_verification). — G.S. 105-228.30
• Mortgage registration tax: North Carolina imposes no mortgage registration/recording tax of the Minnesota/New York type; only recording fees and the deed excise tax apply.

7. Bankruptcy & Death / Divorce

• Buyer bankruptcy treatment: Fact-dependent / likely secured-debt-leaning. Because NC treats the buyer as a mortgagor with equitable title and the seller as holding title as security (Brannock), a Chapter 13 debtor-buyer typically argues the arrangement is a secured debt that can be cured and paid through the plan (with the protected equity of redemption), rather than an executory contract assumable/rejectable under 11 U.S.C. § 365. No controlling Fourth Circuit holding located classifying an NC contract for deed — see needs_verification. — 11 U.S.C. § 365; brannock-v-fletcher-1967
• Seller bankruptcy effect: If the seller (legal-title holder) files, the recorded contract and the buyer’s equitable ownership protect the buyer; the trustee takes subject to the recorded contract, and the buyer may compel conveyance on payoff.
• Assignability by buyer: The buyer’s equitable interest is generally assignable; anti-assignment clauses are common and enforced per their terms (no Chapter 47H prohibition; contract-governed — see needs_verification).
• Survivorship on death: The buyer’s equitable interest is real property passing by will/intestacy (or by survivorship if titled jointly); the seller’s legal title passes to the seller’s estate subject to the duty to convey on payoff.
• Divorce treatment: The buyer’s equitable interest is marital or separate property subject to equitable distribution under G.S. 50-20 like other real-property interests (fact-specific). — G.S. 50-20

8. Case Law (real, verified)

Case	Year	Topic	Holding (plain English)	Source
brannock-v-fletcher-1967	1967	equitable interest / remedies	The vendor-vendee relation in an executory land-sale contract “is substantially that subsisting between mortgagee and mortgagor”; the buyer has an equity of redemption and may redeem by tendering the balance, even after default and surrendering possession. 271 N.C. 65, 155 S.E.2d 532.	courtlistener
lamberth-v-mcdaniel-1998	1998	forfeiture / redemption	A contract clause treating past installment payments as rent on default is unenforceable; the buyer’s equity of redemption cannot be waived at the time of agreement, and the defaulting buyer may redeem by paying the balance + interest + taxes. 131 N.C. App. 319, 506 S.E.2d 295.	FindLaw opinion
marantz-piano-co-v-kincaid-1993	1993	eviction vs. ejectment	A defaulting installment-land-contract buyer is not a tenant but a vendee, so summary ejectment is inapplicable (the magistrate lacks jurisdiction where the relationship is vendor-vendee). 108 N.C. App. 693, 424 S.E.2d 671.	Leagle opinion

9. Edge Cases (state-specific notes)

• wrap-around-mortgage — Permitted only under G.S. 47H-6’s narrow conditions (seller’s-name lien + licensee-keeps-paying or single-property carve-out); the 14-pt bold lien warning (47H-6(b)) is mandatory, and violation → damages/rescission (47H-6(c)).
• garn-st-germain-due-on-sale — A CFD transfer can trigger a due-on-sale clause on the seller’s underlying loan; federal residential exemptions are narrow for a true third-party sale — the lienholder may foreclose even if the buyer is current (the reason 47H-6(b) exists).
• Manufactured homes: Chapter 47H expressly covers a manufactured home (G.S. 143-149.9) occupied as the buyer’s principal dwelling **if price ≥ $5,000\ast \ast (47H-1(5));below$5,000 it falls outside the chapter. Watch separate titling (DMV vs. real property) for manufactured homes.
• Scope trap: Vacant land, non-owner-occupant/investor deals, and >4-unit or commercial parcels are outside Chapter 47H — governed by common-law contract and the Brannock mortgage analogy (so redemption still applies, but the 47H disclosures/recording/late-fee/notice rules do not).
• Connor Act priority: A seller who blows the five-business-day recording duty (47H-2(d)) risks a 47H-8 claim and a buyer/third-party priority fight under G.S. 47-18.

10. Operations

• Where records live: County Register of Deeds (recorded contract or “Memorandum of a Contract for Deed,” 47H-2(d); recorded mutual termination or certified court order under G.S. 1-228, 47H-2(e)).
• Public-access portals: County register-of-deeds online indexes (e.g., Wake, Mecklenburg, Guilford, Durham); NC General Statutes (ncleg.gov) for statutes; NC Courts for opinions; NCCOB for SAFE/MLO.
• Who may draft (UPL notes): In North Carolina, drafting/selecting provisions of a contract for deed for another for compensation is generally the practice of law (G.S. 84-2.1; State Bar authority); non-attorney preparation for others risks UPL. A licensed real-estate broker may fill in standardized forms in a brokered transaction, but custom drafting calls for an NC attorney. (Confirm current State Bar guidance — see needs_verification.) — G.S. 84-2.1
• Typical costs / timelines: Register-of-deeds recording fee (seller pays, 47H-2(d)) + deed excise tax at payoff. A clean default resolves on the 47H-4 ≥30-day cure timeline; if the buyer asserts redemption or refuses a mutual termination, the seller’s judicial path to extinguish redemption (47H-2(e)(2)) runs months like a contested foreclosure/quiet-title.
• Key agencies: County Registers of Deeds; NC trial courts (judgment terminating redemption); NC Commissioner of Banks (SAFE/MLO); NC Real Estate Commission (broker conduct); NC State Bar (UPL).
• Useful forms: G.S. 47H-2(b) compliant contract; 47E residential property disclosure; 47H-6(b) lien warning; 47H-4 notice of default and intent to forfeit; Memorandum of a Contract for Deed; recorded mutual termination or certified court order (47H-2(e)).

11. Meta

• sources:
  • {type: statute, url: “https://www.ncleg.net/EnactedLegislation/Statutes/PDF/ByChapter/Chapter_47H.pdf”, retrieved: 2026-06-08, note: “Full Chapter 47H text 47H-1 through 47H-8 (official NCLEG PDF; extracted in full this run)”}
  • {type: statute, url: “https://www.ncleg.gov/enactedlegislation/statutes/html/bysection/chapter_47h/gs_47h-3.html”, retrieved: 2026-06-08, note: “G.S. 47H-3 conditions of forfeiture / right to cure”}
  • {type: statute, url: “https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/ByChapter/Chapter_47E.html”, retrieved: 2026-06-08, note: “Chapter 47E Residential Property Disclosure Act; covers installment land contracts”}
  • {type: statute, url: “https://www.ncleg.gov/enactedlegislation/statutes/html/bysection/chapter_47/gs_47-18.html”, retrieved: 2026-06-08, note: “Connor Act G.S. 47-18; ‘contract to convey’ valid only from registration”}
  • {type: statute, url: “https://www.ncleg.gov/enactedlegislation/statutes/html/bysection/chapter_24/gs_24-1.1.html”, retrieved: 2026-06-08, note: “G.S. 24-1.1 usury cap; 16%/T-bill+6% ≤$25k,anyrate>$25k”}
  • {type: case, url: “https://www.courtlistener.com/opinion/1384159/brannock-v-fletcher/”, retrieved: 2026-06-08, cite: “Brannock v. Fletcher, 271 N.C. 65, 155 S.E.2d 532 (1967)”}
  • {type: case, url: “https://caselaw.findlaw.com/court/nc-court-of-appeals/1242195.html”, retrieved: 2026-06-08, cite: “Lamberth v. McDaniel, 131 N.C. App. 319, 506 S.E.2d 295 (1998)”, note: “Citation + holding (treat-payments-as-rent clause unenforceable; equity of redemption cannot be waived at time of agreement; redeem by paying balance + interest + taxes) confirmed via search snippets quoting the opinion; FindLaw full-text page returns 403 to automated fetch but is the canonical opinion host”}
  • {type: case, url: “https://www.leagle.com/decision/19931095424se2d67111003”, retrieved: 2026-06-08, cite: “Marantz Piano Co. v. Kincaid, 108 N.C. App. 693, 424 S.E.2d 671 (1993)”, note: “Citation + holding (summary ejectment unavailable where relationship is vendor-vendee, not landlord-tenant) confirmed via search snippets quoting the opinion; Leagle full-text page returns 403 to automated fetch”}
  • {type: secondary, url: “https://mbklawblog.wordpress.com/2015/08/04/installment-land-contracts-in-north-carolina/”, retrieved: 2026-06-08, note: “Orientation only; collected NC case citations (Brannock, Lamberth, Boyd v. Watts, Marantz, Foy) — corroborated, not relied on as the legal citation”}
• needs_verification:
  • Full opinion text of Lamberth v. McDaniel, 131 N.C. App. 319, 506 S.E.2d 295 (1998) — citation and holding (treat-payments-as-rent clause unenforceable; equity of redemption un-waivable at agreement; redeem by paying balance + interest + taxes) confirmed this run via search snippets quoting the opinion; primary opinion host (FindLaw) returns 403 to automated fetch — re-verify the exact pinpoint pages via Westlaw/Lexis if available.
  • Full opinion text of Marantz Piano Co. v. Kincaid, 108 N.C. App. 693, 424 S.E.2d 671 (1993) — holding that summary ejectment is unavailable where the relationship is vendor-vendee confirmed this run via search snippets quoting the opinion; full-text hosts (Leagle) return 403 to automated fetch — re-verify pinpoint pages via Westlaw/Lexis if available.
  • Whether a NC seller may pursue a separate deficiency action for the unpaid balance after a judicial termination/redemption of a contract for deed.
  • Seller-side acceleration clause treatment against the 47H-4 ≥30-day cure and reinstatement-on-cure rule.
  • Controlling Fourth Circuit / NC bankruptcy authority classifying an NC contract for deed as executory contract (§365) vs. secured debt.
  • Homestead / elderly-disabled exclusion (G.S. 105-277.1) eligibility for an equitable owner under a recorded contract (current assessor practice).
  • Whether NC deed excise tax (G.S. 105-228.30) is assessed at contract/memorandum recording or only at deed recording at payoff (county register practice).
  • Current NCCOB / SAFE Act exemption posture for an individual seller-financer of their own dwelling vs. a repeat operator.
  • Current NC State Bar UPL guidance on non-attorney preparation of contracts for deed.
  • Title-insurance availability specifics for the NC vendee’s equitable interest.
• open_questions:
  • Does Chapter 47H’s forfeiture procedure (47H-3/47H-4) plus the un-waivable redemption (47H-2(e)) make a true non-judicial forfeiture impossible in practice whenever the buyer refuses a mutual termination? (Statutory text suggests yes; confirm with post-2010 NC appellate application of 47H.)
  • Any reported NC appellate decision construing Chapter 47H itself (most NC redemption case law predates the 2010 statute).
• changelog:
  • 2026-06-08 — Initial authored page; all schema modules populated from retrieved primary sources: G.S. Ch. 47H (full PDF), G.S. 47-18 (Connor Act), Ch. 47E, G.S. 24-1.1, and verified NC cases Brannock v. Fletcher and Lamberth v. McDaniel. Remedy regime classified hybrid (statutory forfeiture procedure + un-waivable equity of redemption).
  • 2026-06-08 — Adversarial citation-verification pass. Independently re-fetched primary sources: every G.S. 47H section (47H-1 through 47H-8) confirmed against ncleg.gov HTML, including exact subsection lettering (47H-2(c) cancel / (d) recording / (e)-(f) un-waivable redemption); G.S. 47-18 (Connor Act covers “contract to convey”), 24-1.1, 24-2, 75-1.1, Ch. 53 Art. 19B (NC SAFE Act), Ch. 47E (expressly lists “installment land sales contract”), and 105-228.30 ($1/$500 excise) all confirmed. All three cited cases confirmed real with correct reporter citations and holdings — Brannock’s “substantially that subsisting between mortgagee and mortgagor” language verified verbatim; Lamberth and Marantz holdings confirmed via opinion-quoting search snippets (full-text hosts 403 to automated fetch). No fabrications, no miscited/repealed sections. Corrected the Marantz source link (was a stray statute-codes URL → Leagle opinion) and tightened two needs_verification flags now substantively confirmed. gap_score 9→8 (no rows 3-5 contribution).
• cross_links: forfeiture-vs-foreclosure, equitable-conversion, dodd-frank-seller-financing, safe-act-mlo, garn-st-germain-due-on-sale, wrap-around-mortgage, irc-453-installment-sale, skendzel-v-marshall-1973, sebastian-v-floyd-1979, brannock-v-fletcher-1967, lamberth-v-mcdaniel-1998, marantz-piano-co-v-kincaid-1993

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Disclaimer. This page is legal information, not legal advice, and may be out of date. Contract-for-deed statutes are frequently amended and remedies turn on facts. Consult a licensed attorney in this jurisdiction before drafting, enforcing, or signing an installment land contract.