North Carolina § 41-56 - Creation of tenancy by the entirety.

§ 41-56. Creation of tenancy by the entirety.

Unless a contrary intention is expressed in the conveyance, a conveyance of real property, or any interest in real property, to spouses vests title in them as tenants by the entirety when the conveyance is to one of the following: A named man "and wife." A named woman "and husband." A named individual "and wife." A named individual "and husband." A named individual "and spouse." Two named individuals, married to each other at the time of conveyance, whether or not identified in the conveyance as being (i) husband and wife, (ii) spouses, or (iii) married to each other. A conveyance by a grantor of real property, or any interest in real property, to the grantor and his or her spouse vests the property in them as tenants by the entirety, unless a contrary intention is expressed in the conveyance. The joinder of a spouse in a conveyance made by the grantor under this subsection is not necessary, but the conveyance is subject to the provisions of G.S. 52-10 or G.S. 52-10.1, except acknowledgement of the spouse of the grantor is not necessary. When an individual owns an undivided interest in real property as a tenant in common with some individual or individuals other than his or her spouse and there occurs an actual partition of the property, a tenancy by the entirety may be created in the individual who owned the undivided interest and his or her spouse as follows: In a division by crossdeed or deeds between or among the tenants in common, if the instrument contains both of the following: The intent of the tenant in common to create a tenancy by the entirety with his or her spouse in this exchange of deeds is clearly stated in the granting clause of the deed or deeds to the tenant in common and his or her spouse. The deed or deeds to the tenant in common and his or her spouse is signed by the tenant in common and is acknowledged before a certifying officer in accordance with G.S. 52-10. In a judicial proceeding for actual partition where both spouses have the right to become parties to the proceeding and to have their pleadings state that the intent of the tenant in common is to create a tenancy by the entirety with his or her spouse. The order of partition must provide that the real property apportioned to the tenant in common and his or her spouse shall be owned by them as tenants by the entirety. When spouses become co-owners of a mobile home, in the absence of a contrary intention appearing in the instrument of title, the spouses become tenants by the entirety with all the incidents of an estate by the entirety in real property, including the right of survivorship in the case of death of either spouse. For the purposes of this subsection, it is immaterial whether the property at any particular time is classified for any purpose as either real or personal. Nothing in this subsection is deemed to limit or prohibit any other type of ownership otherwise authorized by law. For the purposes of this subsection, the term "mobile home" means a portable manufactured housing unit designed for transportation on its own chassis and placement on a temporary or semipermanent foundation having a measurement of over 32 feet in length and over eight feet in width. As used in this subsection, the term "mobile home" also means a double-wide mobile home consisting of two or more portable manufactured housing units that are designed for transportation on their own chassis and are connected on site for placement on a temporary or semipermanent foundation having a measurement of over 32 feet in length and over eight feet in width. History (1957, c. 598, s. 1; 1965, c. 878, s. 3; 1969, c. 748, s. 1; 1977, c. 375, ss. 9, 11; 1981, c. 507, s. 1; 1981 (Reg. Sess., 1982), c. 1245, s. 1; 1983, c. 449, ss. 1, 2; 1999-337, s. 11; 2020-23, s. 13; 2020-50, ss. 1(a)-(c), 3.1; 2021-91, s. 8.) Cross References. - As to rules for construction, see G.S. 12-3. As to rules for construction pertaining to "husband and wife," see G.S. 12-3(16). As to rules for construction pertaining to "husband and wife," "widow," and "widower," see G.S. 12-3(16), (17). Editor's Note. - Subsections (a), (b), (c), and (d) of this section are former G.S. 39-13.6(b) , G.S. 39-13.3(b) , G.S. 39-13.5 , and G.S. 41-2.5, respectively, as recodified by Session Laws 2020-50, s. 1(b), effective June 30, 2020. The historical citations and annotations from the former sections have been added to this section as recodified. This section was amended by Session Laws 2020-23, s. 13, effective October 1, 2020, and Session Laws 2020-50, s. 1(b), (c), which recodified and rewrote the section, effective June 30, 2020, in the coded bill drafting format provided by G.S. 120-20.1. The amendments did not account for one another, and Session Laws 2020-50 did not strike through a period following "common" in subdivision (c)(1) that was added by Session Laws 2020-23. Subdivision (c)(1) has been set out in the form above at the direction of the Revisor of Statutes. Effect of Amendments. - Session Laws 2020-23, s. 13, effective October 1, 2020, in the introductory paragraph of subsection (c), substituted "as follows" for "in the manner hereinafter provided"; in subdivisions (c)(1) and (c)(2), substituted "tenant in common and his or her spouse" for "tenant and his or her spouse"; in subdivision (c)(1), substituted "must be" for "is" twice; in subdivision (c)(2), inserted "actual" in the first sentence; and made stylistic changes. Session Laws 2020-50, s. 1(c), effective June 30, 2020, rewrote the section. Session Laws 2020-50, s. 3.1, effective June 30, 2020, made minor stylistic changes in sub-subdivision (c)(1)b. and subdivision (c)(2). Session Laws 2021-91, s. 8, effective October 1, 2021, substituted "in real property” for "therein” in subsection (a); substituted "in real property, to the grantor” for "therein, to an individual,” "them” for "the grantees,” and "G.S. 52-10.1” for "G.S. 52-11” in subsection (b); made a stylistic change in subdivision (c)(1); and rewrote subsection (d). Legal Periodicals. - For article on tenancy by the entirety in North Carolina including brief discussion of this section, see 41 N.C.L. Rev. 67 (1962). For article on joint ownership of corporate securities in North Carolina, see 44 N.C.L. Rev. 290 (1966). For comment on tenancy by the entirety in North Carolina, see 59 N.C.L. Rev. 997 (1980). For comment on resulting trusts in entireties property when the wife furnishes purchase money, see 17 Wake Forest L. Rev. 415 (1981). For survey of 1981 property law, see 60 N.C.L. Rev. 1420 (1982). For article analyzing North Carolina's tenancy by the entirety reform legislation of 1982, see 5 Campbell L. Rev. 1 (1982). For article discussing the doctrine of color of title in North Carolina, see 13 N.C. Cent. L.J. 123 (1982). For survey of 1982 law relating to family law, see 61 N.C.L. Rev. 1155 (1983). For comment discussing the status of the presumption of purchase money resulting trust for wives in light of Mims v. Mims, 305 N.C. 41 , 286 S.E.2d 779 (1982), see 61 N.C.L. Rev. 576 (1983). For note, "Branch Banking & Trust Co. v. Wright - Creditors' Rights to Entireties Property Awarded to Nondebtor Spouse Upon Divorce," see 64 N.C.L. Rev. 1471 (1986). For note on the retroactive application of G.S. 39-13.6 under a vested rights analysis, see 65 N.C.L. Rev. 1195 (1987). For note, "McLean v. McLean: North Carolina Adopts the Gift Presumption in Equitable Distribution," see 68 N.C. L. Rev. 1269 (1990). For article, "A Spouse's Right to Control Assets During Marriage: Is North Carolina Living in the Middle Ages?", see 18 Campbell L. Rev. 203 (1996).