N.C. Gen. Stat. § § 42-6
Rents, annuities, etc., apportioned, where right to payment terminated by death.
Operative Text
In all cases where rents, rent charges, annuities, pensions, dividends, or any other payments of any description, are made payable at fixed periods to successive owners under any instrument, or by any will, and where the right of any owner to receive payment is terminable by a death or other uncertain event, and where such right so terminates during a period in which a payment is growing due, the payment becoming due next after such terminating event shall be apportioned among the successive owners according to the parts of such periods elapsing before and after the terminating event. (1868-9, c. 156, s. 7; Code, s. 1748; Rev., s. 1988; C.S., s. 2346.)
Under N.C. Gen. Stat. § 42-6, when recurring payments such as rent are owed at fixed intervals to a series of owners and one owner's right to receive those payments ends mid-period due to death or another uncertain event, the next payment that comes due is divided proportionally between the outgoing and incoming owners based on how much of that payment period each person was entitled. The rule prevents either party from receiving a windfall simply because the ownership change happened to fall between scheduled payment dates. It applies broadly to rents, annuities, pensions, dividends, and similar periodic payments governed by a legal instrument or will.
Plain English — not legal advice.
Property owners and managers dealing with estates or successive ownership arrangements should be aware that N.C. Gen. Stat. § 42-6 governs how rent payments are allocated when an owner's interest terminates mid-period. Compliant operators generally calculate the precise date of the terminating event, determine what fraction of the payment period had elapsed, and allocate the next scheduled payment accordingly between the prior and successor owners. Keeping clear records of payment periods and the exact date of any ownership-terminating event helps support accurate apportionment.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For tenants, N.C. Gen. Stat. § 42-6 is most relevant when a landlord's ownership interest ends mid-rent-period due to death or a similar event, as it determines which party is legally entitled to receive the apportioned rent. Tenants in this situation may want to confirm in writing who holds the right to collect rent for the relevant period before making payment, to avoid the risk of paying the wrong party. Consulting a tenant-rights organization or legal aid office can help clarify obligations when ownership of a rental property changes unexpectedly.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 14, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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