GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2017
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HOUSE BILL DRH40418-MQf-49 (02/16)
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Short Title: Real Property Technical Corrections. |
(Public) |
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Sponsors: |
Representative Jordan. |
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Referred to: |
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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.
The General Assembly of North Carolina enacts:
PART I. MORTGAGE AND DEED OF TRUST CHANGES
SECTION 1.1. G.S. 39‑13 reads as rewritten:
"§ 39‑13. Spouse need not join in purchase‑money mortgage.
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 pay all or a
portion of the purchase price of the encumbered real property, regardless of
whether the secured party is the seller of the real property or a 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. G.S. 161‑10(a) reads as rewritten:
"§ 161‑10. Uniform fees of registers of deeds.
(a) Except as otherwise provided in this Article, all fees collected under this section shall be deposited into the county general fund. While performing the duties of the office, the register of deeds shall collect the following fees which shall be uniform throughout the State:
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(1a) Deeds of Trust, Mortgages, and Cancellation of Deeds of Trust and Mortgages. – For registering or filing any deed of trust or mortgage the fee shall be sixty‑four dollars ($64.00) for the first 35 pages plus four dollars ($4.00) for each additional page or fraction thereof.
When a deed of trust 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 if such additional instrument or instruments has or have different legal consequences or intent, each of which is separately executed and acknowledged and could be recorded alone.
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. In all other cases, the fees provided in subdivision (1) of this subsection shall apply to the registration or filing of any subsequent instrument that relates to a previously recorded deed of trust or mortgage. For the purposes of this section, the term "subsequent instrument" has the same meaning as set forth in G.S. 161‑14.1(a)(3).
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SECTION 1.3. G.S. 161‑14.1(a) reads as rewritten:
"§ 161‑14.1. Recording subsequent entries as separate instruments.
(a) As used in this section, the following terms mean:
(1) Original instrument. – The previously recorded instrument that is modified, amended, restated, supplemented, assigned, satisfied, terminated, revoked, or cancelled by a subsequent instrument.
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(3) Subsequent instrument. – Any instrument presented for registration that indicates in its title or within the first two pages of its text that it is intended or purports to modify, amend, restate, supplement, assign, satisfy, terminate, revoke, or cancel a previously registered instrument. Examples of subsequent instruments include the following:
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i. An instrument that
amends, modifies, or restates an original instrument, such as an amendment
or modification agreement.agreement or an amended and restated
instrument.
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PART II. PROBATE AND REGISTRATION CHANGES
SECTION 2.1. G.S. 47‑17.1 reads as rewritten:
"§ 47‑17.1. Documents registered or ordered to be registered in certain counties to designate draftsman; exceptions.
The register of deeds of any county in North Carolina shall not accept for registration, nor shall any judge order registration pursuant to G.S. 47‑14, of any 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. This section shall not apply to other instruments presented for registration. 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. G.S. 47‑18.3 reads as rewritten:
"§ 47‑18.3. Execution of corporate instruments; authority and proof.
(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 rights of innocent third
parties as if executed pursuant to authorization from the board of directors,
unless the instrument reveals on its face a potential breach of fiduciary
obligation. The subsection shall not apply to parties who had actual knowledge
of lack of authority or of a breach of fiduciary obligation.
(b) Any instrument
registered in the office of the register of deeds, appearing on its face to be
executed by a corporation, corporation or limited liability company, foreign
or domestic, and bearing a seal which purports to be the corporate seal,
setting forth the name of the corporation engraved, lithographed, printed,
stamped, impressed upon, or otherwise affixed to the instrument, is prima facie
evidence that the seal is the duly adopted corporate seal of the corporation,
that it has been affixed as such by a person an individual duly
authorized so to do, that the instrument was duly executed and signed by persons
individuals who were officers or agents of the corporation acting by
authority duly given by the board of directors, and that any such instrument is
the act of the corporation, and shall be admissible in evidence without further
proof of execution.
(c) Nothing in this section shall be deemed to exclude the power of any corporate or limited liability company representatives to bind the corporation or limited liability company pursuant to express, implied, inherent or apparent authority, ratification, estoppel, or otherwise.
(d) Nothing in this section shall relieve corporate or limited liability company officers from liability to the corporation or limited liability company or from any other liability that they may have incurred from any violation of their actual authority.
(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 members of the
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 county where the land lies, which said resolution shall be
applicable to all deeds executed subsequently thereto and pursuant to its
authority. Notwithstanding the foregoing, this section shall not require a
signed and attested resolution of the board of directors of the corporation or
the managers or members of the limited liability company to be attached to
an instrument or separately recorded in the case of an instrument duly executed
by the corporation's chairman, president, chief executive officer, a vice‑president,
assistant vice‑president, treasurer, or chief financial officer.officer,
chief operations officer, general counsel, deputy or assistant general counsel,
manager, member, director, or any similar business title. All deeds,
conveyances, or other instruments which have been heretofore or shall be
hereafter so executed shall, if otherwise sufficient, be valid and shall have
the effect to pass the title to the real or personal property described
therein."
part iii. Effective dates
SECTION 3.1. Part I 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. Part II of this act is effective when this act becomes law and applies to instruments presented for registration on or after that date. The remainder of this act is effective when it becomes law.