HB 852 — Real Prop. Tech Correc/Solicitation of Copies.

GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2017 H 21 HOUSE BILL 852 Senate Finance Committee Substitute Adopted 6/14/18 Short Title:

Real Prop.Property Technical Corrections.

Tech Correc/Solicitation of Copies.

Representatives Jordan and Zachary (Primary Sponsors).

For a complete list of sponsors, refer to the North Carolina General Assembly web site.

Judiciary III, if favorable, Finance April 13, 2017 A BILL TO BE ENTITLED AN ACT TO MAKE CORRECTIONS AND OTHER AMENDMENTS TO VARIOUS STATUTES IMPACTING REAL PROPERTY OWNERSHIP AND TO MAKE OTHER CONFORMING CHANGES, AS RECOMMENDED BY THE REAL PROPERTY SECTION OF THE NORTH CAROLINA STATE BAR ASSOCIATION,ASSOCIATION. AND TO REGULATE THE SOLICITATION OF A FEE IN EXCHANGE FOR COPIES OF RECORDED DOCUMENTS.

8 PART I.

The purchaser of real estate who does not pay the whole of the purchase money at the time when he or she takes a deed for title may make a mortgage or deed of trust for securing the payment of such purchase money, or such part thereof as may remain unpaid, which A mortgage or deed of trust given by the purchaser of real property to secure a loan, the proceeds of which were used to payallpay all or a portion of the purchase price of the encumbered real property, regardless of whether the secured partyisparty is the seller of the real propertyorproperty or a third-partylender,third-party lender, shall be good and effectual against his or her the purchaser's spouse as well as the purchaser, without requiring the spouse to join in the execution of such the mortgage or deed of trust." SECTION 1.2.

When adeeda oftrustdeed ormortgageisof presentedforregistrationthatcontainstrust or mortgage is presented for registration that contains one or more additional instruments, the fee shall be ten dollars ($10.00) for each additional instrument.

A deed of trust or mortgage contains one or more additional instruments ifsuchadditionalinstrumentif orinstrumentssuch additional instrument or instruments has orhaveor have different legal consequences or intent, each of which is separately executed and acknowledged and could be recorded alone.

*H852-v-2**H852-v-1* General Assembly Of North Carolina Session 2017 For recording records of satisfaction, or the cancellation of record by any other means, of deeds of trust or mortgages, there shall be no fee.

The register of deeds of any county in North Carolina shall not accept for registration, nor shall anyjudgeany judge order registration pursuant to G.S.

47-14, of anydeedsany deeds or deeds of trust, executed after January 1, 1980, unless the first page of the deeds or deeds of trust bears an entry showing the name of either the person or law firm who drafted the instrument.

For the purposes of this section, the register of deeds shall accept the verbal or written representation of the individual presenting the deed or deed of trust for registration, or any individual reasonably related to the transaction, including, but not limited to, any employee of a title insurance company or agency purporting to be involved with the transaction, that the individual or law firm listed on the first page is a validly licensed attorney or validly existing law firm in this State or another jurisdiction within the United States." SECTION 2.2.

(a) Notwithstanding anything to the contrary in the bylaws or articles of incorporation, incorporation or the operating agreement or articles of organization, when it appears on the face of an instrument registered in the office of the register of deeds that the instrument was signed in the ordinary course of business on behalf of a domestic or foreign corporation or a domestic or foreign limited liability company by its chairman, president, chief executive officer, a vice-president or an assistant vice-president, treasurer, or chief financial officer, chief operations officer, general counsel, deputy or assistant general counsel, manager, member, director, or any similar business titles, such an instrument shall be as valid with respect to the Page 2 House Bill 852-First Edition General Assembly Of North Carolina Session 2017 rights of innocent third parties as if executed pursuant to authorization from the board of directors, unless the Page 2 House Bill 852-Second Edition General Assembly Of North Carolina Session 2017 instrument reveals on its face a potential breach of fiduciary obligation.

(e) Any corporation or limited liability company may convey an interest in real property which is transferable by instrument which is duly executed by either an officer, manager, member, or agent of said corporation or limited liability company and has attached thereto a signed and attested resolution of the board of directors of said corporation or the managers or membersofthelimitedliabilitycompanyauthorizingthesaidmembers officer,manager,of member,oragentthe limited liability company authorizing the said officer, manager, member, or agent to execute, sign, seal, and attest deeds, conveyances, or other instruments.

This section shall be deemed to have been complied with if an attested resolution is recorded separately in the office of the register of deeds in the countywherecounty where the land lies, which said resolution shall be applicable to all deeds executed subsequently thereto and pursuant to its authority.

REGULATEEFFECTIVE SOLICITATIONDATES OF COPIES SECTION 3.1.

ArticlePart 1I of Chapterthis 75act ofis theeffective Generalwhen Statutesthis isact amendedbecomes byaddinglaw aand newapplies section to read:mortgages and deeds of trust entered into before, on, or after that date.

"§Part 75-43.II of this act is effective when this act becomes law and applies to instruments presented for registration on or after that date.

SolicitationThe remainder of athis feeact foris copyeffective ofwhen recordedit documents.becomes law.

(a)House AnyBill person,852-First firm,Edition orPage corporation3 soliciting a fee in exchange for providing a copy of a record available at the register of deeds office shall state on the top of the document used for the solicitation, in conspicuous type, all of the following:

(1) That the solicitation is not from a State agency or a local unit of government.

(2) That no action is legally required by the person being solicited.

(3) The fee for obtaining a copy of the record directly from the register of deeds that has custody of the record.

(4) The information necessary to contact the register of deeds that has custody of the record.

House Bill 852-Second Edition Page 3 General Assembly Of North Carolina Session 2017 (5) The name and physical address of the person, firm, or corporation soliciting the fee.

(b) A document used for a solicitation governed bythis section shall not contain deadline dates or be in a form or contain language designed to make the document appear to be issued by a State agencyor local unit of government or to appear to impose a legal dutyon the person being solicited.

(c) A person, firm, or corporation soliciting a fee in exchange for providing a copy of a record may not charge a fee that is greater than four times the amount the register of deeds with custody of the record would charge for a copy of the same record.

(d) A violation of this section constitutes an unfair trade practice under G.S.

75-1.1 and is subject to all of the enforcement and penalty provisions under this Article.

(e) For the purposes of this section, the term "solicit" means to advertise or market to a nonbusiness entity with whom the solicitor has no preexisting business relationship." PART IV.

EFFECTIVE DATES SECTION 4.1.

Sections 1.2 and 1.3 of this act become effective October 1, 2018, and apply to instruments presented for registration on or after that date.

Section 3.1 of this act becomes effective October 1, 2018.

The remainder of this act is effective when this act becomes law and applies to mortgages and deeds of trust entered into before, on, or after that date.

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