SB 595 — Changes to Real Property Statutes.

GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2019 S 21 SENATE BILL 595 Judiciary Committee Substitute Adopted 5/1/19 Short Title:

Senator Daniel (Primary Sponsor).

Rules and Operations of the Senate April 4, 2019 A BILL TO BE ENTITLED AN ACT TO MAKE CHANGES AND TECHNICAL CORRECTIONS TO THE GENERAL STATUTES CONCERNING REAL PROPERTY LAW, AS RECOMMENDED BY THE NORTH CAROLINA BAR ASSOCIATION.

*S595-v-2**S595-v-1* General Assembly Of North Carolina Session 2019 (a) A Unless a contrary intention is expressed in the conveyance, a conveyance of real property, or any interest therein, to a husband and wifespouses vests title in them as tenants by the entirety when the conveyance is to:to one of the following:

(1) A named man individual "and wife,wife," orwife." (2) A named woman individual "and husband," orhusband." (3) A named individual "and wife."spouse." (4) A named individual "and husband." (5) A named individual "and spouse." (6) Two named persons,persons,individuals, individuals, married to each other at the time of conveyance, whether or not identified in the conveyance as being (i) husband and wife, if at the time of conveyance they are legally married;

For the purpose purposes of this section subsection,subsection it shall beis immaterial whether the property at anyparticularany particular time shall be classified for any purpose as either real or personal.

As used in this Article, subsection, the term "mobile home" also means Page 2 Senate Bill 595-Second Edition General Assembly Of North Carolina Session 2019 a double-wide mobile home which is two or more portable manufactured housing units designed for transportation on their own chassis, which connect on site for placement on a temporary or Page 2 Senate Bill 595-First Edition General Assembly Of North Carolina Session 2019 semipermanent foundation having a measurement of over 32 feet in length and over eight feet in width.

Senate Bill 595-Second595-First Edition Page 3 General Assembly Of North Carolina Session 2019 (a) Neitherspouseholdingpropertyas tenants bytheentiretyis entitledto reimbursement of expenditures made on the property, including payments on indebtedness encumbering the property, while the tenancy by the entirety exists.

Page 4 Senate Bill 595-Second595-First Edition General Assembly Of North Carolina Session 2019 (b) Where the slayera slayer, as defined in G.S.

(f) Notice may be given in a statement in the conveyance of the tenancy by the entireties real property to the trust that the real property is held under this section and that, as of the date Senate Bill 595-Second595-First Edition Page 5 General Assembly Of North Carolina Session 2019 of the conveyance, the requirements are met providing for the application of G.S.

Page 6 Senate Bill 595-Second595-First Edition General Assembly Of North Carolina Session 2019 (a) The interests of the grantees holdingpropertyjoint tenants in a joint tenancywith right of survivorship shall be deemed to be equal unless otherwise specified provided in the instrument of conveyance.

Senate Bill 595-Second595-First Edition Page 7 General Assembly Of North Carolina Session 2019 (2) If a termination occurs because of the execution by all of the joint tenants of an instrument described in subdivisions (2) or (3) of subsection (a) of this section, a tenancy in common is created among the tenants.

The common law of joint tenancy with right of survivorship and principles of equity supplement this Article except to the extent it conflicts or is inconsistent with a provision of this Article or the laws of this State." Page 8 Senate Bill 595-Second595-First Edition General Assembly Of North Carolina Session 2019 SECTION 2.(d) The remaining sentences of G.S.

Priority of a Senate Bill 595-Second595-First Edition Page 9 General Assembly Of North Carolina Session 2019 Grantee hereunder shall extend to those claiming by, through, or under them pursuant to G.S.

Page 10 Senate Bill 595-Second595-First Edition General Assembly Of North Carolina Session 2019 (b) A contract between the current owner of record and a grantee shall be conclusively deemed sufficient authority for the notice agent to register a notice of settlement, unless the contract specifically prohibits registration of a notice.

Senate Bill 595-Second595-First Edition Page 11 General Assembly Of North Carolina Session 2019 [INSERT SUFFICIENT INFORMATION REGARDING THE PROPERTY FOR IT TO BE CLEARLY IDENTIFIED FROM THE PUBLIC RECORDS, SUCH AS LEGAL DESCRIPTION, VESTING DOCUMENT REFERENCE, STREET ADDRESS AND/OR TAX MAP REFERENCES] 6 This Notice of Settlement shall be effective from the time of, and for _____ days [INSERT NUMBER OF DAYS, NOT TO EXCEED 60 DAYS], or if none stated, the term of this Notice of Settlement shall be 60 days, following the day of registration of this Notice of Settlement in the office of the register of deeds of the county in which the above real property is situated.

Page 12 Senate Bill 595-Second595-First Edition General Assembly Of North Carolina Session 2019 (4) Any interest or claim regarding the real property by a claimant who is the beneficiaryofanyvalidconveyance,lien,orencumbranceinthepublicrecord that attaches to the real property and is duly registered or filed in the public records of the county or counties in which the real property is located as required by law, and for which the claimant or their attorney has done all of the following:

Senate Bill 595-Second595-First Edition Page 13 General Assembly Of North Carolina Session 2019 "§ 47I-8.

(a) No (i) conveyance of land, or (ii) contract to convey, or (iii) option to convey, or (iv) lease of land for more than three years shall be valid to pass any property interest as against lien creditors or purchasers for a valuable consideration from the donor, bargainer or lesser but from the time of registration thereof in the county where the land lies, or if the land is located in more than one county, then in each county where any portion of the land lies to be effective as to the Page 14 Senate Bill 595-Second595-First Edition General Assembly Of North Carolina Session 2019 land in that county.

Unless otherwise stated either on the registered instrument or on a separate registered instrument duly executed bythe partywhose priorityinterest is adverselyadverselyaffected, affected, (i) instruments registered in the office of the register of deeds shall have priority based on the order of registration as determined bythe time of registration, and (ii) if instruments are registered simultaneously, then the instruments shall be presumed to have priority as determined by:

Senate Bill 595-Second595-First Edition Page 15 General Assembly Of North Carolina Session 2019 u.

ExceptThis as otherwise provided, this act is effective when it becomes law.

Page 16 Senate Bill 595-Second595-First Edition