NORTH CAROLINA GENERAL ASSEMBLY

1961 SESSION

 

 

CHAPTER 1174

HOUSE BILL 849

 

 

AN ACT TO AMEND CHAPTER 47 OF THE GENERAL STATUTES SO AS TO PROVIDE FOR THE FILING OF MEMORANDA OF LEASES AND OPTIONS FOR REGISTRATION.

 

The General Assembly of North Carolina do enact:

 

Section 1.  Chapter 47 of the General Statutes is hereby amended by inserting at the end thereof a new Article to be designated as Article 8 and to read as follows:

"ARTICLE 8

"G.S. 47‑117.  Forms do not preclude use of others; adaptation of forms. (a) The form prescribed in this Article does not exclude the use of other forms which are sufficient in law.

"(b)      The prescribed form may be adapted to fit the various situations in which the grantors or grantees are individuals, firms, associations, corporations, or otherwise, or combinations thereof.

"G.S. 47‑118.  Forms of registration of lease. (a) A lease of land or land and personal property may be registered by registering a memorandum thereof which shall set forth:

"(1)      The names of the parties thereto;

"(2)      A description of the property leased;

"(3)      The term of the lease, including extensions, renewals and options to purchase, if any; and

"(4)      Reference sufficient to identify the complete agreement between the parties.

Such a memorandum may be substantially the following form:

 

"MEMORANDUM OF LEASE

____________________________________________________________________________

(Name and address or description of lessor or lessors)

hereby lease(s) to _____________________________________________________________ ,

(Name and address or description of lessee or lessees)

for a term beginning the ______________  day of ______________________ , 19________ , and

                                                                                                   (Month)

continuing for a maximum period of _______________________________ , including extensions and renewals, if any, the following property:

(Here describe the property)

(If applicable: [There exists an option to purchase with respect to this leased property, in favor of the lessee which expires the _________________________________  day of _______________ , 19_________ ,

                                                                                                            (Month)                (Year)

which is set forth at large in the complete agreement between the parties].)

"The provisions set forth in a written lease agreement between the parties dated the

____________  day of _____________________ , 19 ________ , are hereby incorporated in

                                                      (Month)

this memorandum.

___________________________________  [Seal]

                                                                                                (Lessor)

___________________________________  [Seal]

                                                                                                (Lessor)

                                                                                               (Acknowledgment as required by law.)

"(b)      If the provisions of the lease make it impossible or impractical to state the maximum period of the lease because of conditions, renewals and extensions, or otherwise, then the memorandum of lease shall state in detail all provisions concerning the term of the lease as fully as set forth in the written lease agreement between the parties.

"(c)       Registration of a memorandum of lease pursuant to subsections (a) and (b) of this Section, shall have the same legal effect as if the written lease agreement had been registered in its entirety.

"G.S. 47‑119.  Form of memorandum for option to purchase real estate. An option to purchase real estate may be registered by registering a memorandum thereof which shall set forth:

"(1)      The names of the parties thereto;

"(2)      A description of the property which is subject to the option;

"(3)      The expiration date of the option;

"(4)      Reference sufficient to identify the complete agreement between the parties.

Such a memorandum may be in substantially the following form:

 

NORTH CAROLINA

__________________  COUNTY

In consideration of _____________________________________ , the receipt of which

                                                               (Set out consideration)

is hereby acknowledged, _________________________________________________________

                                                               (Name and address of person selling option)

does hereby give and grant to ______________________________________________________

                                                               (Name and address of person buying option)

the right and option to purchase the following property: (Here describe property).

This option shall expire on the __________  day of _____________________ , 19_______

The provisions set forth in a written option agreement between the parties dated the

______  day of ______________________________ , 19 ________ , are hereby incorporated in this memorandum.

Witness our hand(s) and seal(s) this ________  day of __________________ , 19______

______________________________  (Seal)

______________________________  (Seal)

"G.S. 47‑120.  Such memorandum of an option to purchase real estate, or lease as proposed by G.S. 47‑118 or G.S. 47‑119, when executed, acknowledged, delivered and registered as required by law, shall be as good and sufficient notice, and have the same force and effect as if the written lease or option to purchase real estate had been registered in its entirety."

Sec. 2.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 3.  This Act shall become effective October 1, 1961.

In the General Assembly read three times and ratified, this the 22nd day of June, 1961.