Legal Question in Real Estate Law in North Carolina

Think of the ownership of real property as having a bundle of sticks. When you sell it to a buyer, you are giving away all your sticks. When you give the property away but keep a life estate, you give away 99 of the sticks and keep one for you.

Ok - so your grandparents deed the land to your father but kept a life estate for themselves, correct? In that case, your grandparents would be the life tenants and your father was the remainderman. The life tenants would be obligated to pay the taxes, insurance and for the maintenance and would have a right to use the home. But they could not sell the home unless both they and the remainderman (your father) agreed.

You indicate that your father died in 2000 and that your grandmother is still alive. Did your father have a will? If so, then his remainder interest in the property will pass as per his will. If there is no will, then the remainder interest would pass to you and any other intestate heirs.

Your grandmother does not lose her life estate (in most cases) by leaving the home. She does not have to live in it. She (or your aunt acting as her power of attorney) could either: (a) lease the life estate of your grandmother to some other person. That person could only lease it until your grandmother's death, at which time the life estate ends and 100% of the property belongs to the remaindermen, which are the intestate heirs or beneficiaries of your father. The land could be leased to your aunt, but it would only be for the remaining life of your grandmother, not your aunt. And your aunt would have to pay rent or give something else of value to your grandmother. However, there may be restrictions in the POA about self-dealing so she may not be able to rent it to herself.

(b) or your aunt could sell the remainder interest to your father's heirs/beneficiaries. No one else is going to want to buy just a piece of the land. The only way the land could be sold to a third-party would be for the life tenant or her agent under the POA and for the remaindermen to all agree.

So in answer to your question, no your aunt cannot legally change the deed or just move in and say that the land now belongs to her. That said, nothing stops her from trying to act illegally. If that happens, you will need to see a real estate lawyer, but if she has just moved in to the home and is not paying rent, that is not your issue. You and the other remainder heirs do not have a say so for as long as your grandmother is alive. However, if your aunt is abusing her authority under the power of attorney, your grandmother can take action to revoke the POA if she is mentally competent. If not, then any other family member could seek guardianship over your grandmother's person and property.