§ 105-385. Duty to pay taxes on real property; judicial sales; sales under powers; governmental purchasers. - North Carolina Statutes

§105‑385.  Duty to pay taxes on real property; judicial sales; sales underpowers; governmental purchasers.

(a)        Judicial Sales. –In all civil actions and special proceedings in which the sale of any realproperty is ordered, the judgment shall provide for the payment of all taxesthen constituting a lien upon the property and all special assessments orinstallments thereof then due, and the tax liens and special assessments shallbe satisfied from the proceeds of the sale before the proceeds are disbursed.The judgment in such a civil action or special proceeding shall adjust thedisbursements for taxes and special assessments between the parties to theaction or special proceeding in accordance with their respective rights.

(b)        Sales under Powers.– Any person who sells real property under a power of sale conferred upon himby a deed, will, power of attorney, mortgage, deed of trust, or assignment forthe benefit of creditors shall from the proceeds of the sale first satisfy alltaxes  constituting a lien upon the real property and all special assessmentsor installments thereof then due unless the notice of sale provided that theproperty would be sold subject to tax liens and special assessments, and it wasso sold.

(c)        GovernmentalPurchasers. – Any agency, department, or institution of the State of NorthCarolina and any county or municipal corporation that purchases real propertyshall satisfy all taxes constituting a lien upon the property purchased and allspecial assessments or installments thereof then due by deducting the amount ofthe taxes and special assessments from the purchase price and paying it to theproper taxing unit or units. Any agency, department,  or institution of theState and any county or municipal corporation that fails to make the deductionsand payments required by this subsection (c) shall be liable to the taxing unitor units to which the taxes and special assessments are owed for the amountthereof. This liability may be enforced in a civil action brought by the taxingunit or units to which the taxes and special assessments are owed in theappropriate trial division of the General Court of Justice of the  county inwhich the property is located; this remedy shall be in addition to any remediesthe taxing unit may have against the grantor of the property. (1901,c. 558, s. 47; Rev., s. 2857; C.S., s. 7980; 1929, c. 231, s. 1; 1951, c. 252,s. 1; 1971, c. 806, s. 1.)