Bill Summaries: H375 (2015-2016 Session)

  • Summary date: Apr 27 2015 - View summary

    House committee substitute makes the following changes to the 1st edition:

    Amends the long title. 

    Replaces the phrase corrective affidavit with curative affidavit throughout the act, with the exception of GS 47-36.1, which still concerns corrective affidavits.

    Amends GS 47-36.1, repealed in the previous edition, adding subsection (a1) that provides that a corrective affidavit cannot be used to correct an obvious description error. Makes conforming and clarifying changes. 

    Amends GS 47-36.2(a)(2), the definition for curative affidavit (was, corrective affidavit), deleting language from the definition that provided that such an affidavit can correct typographical or other minor errors. Makes technical changes to other definitions. Adds new term title insurance agent, meaning a person or entity licensed by the Commissioner of Insurance and contractually authorized by one or more title insurance company to issue commitments and policies. Requires curative affidavits to include an attorney's NC State Bar Number. Clarifies that notice and copy of a curative affidavit can be made in any manner provided by the Rules of Civil Procedure for service of summons, including delivered by personal service or sent by registered mail. Provides that insurance companies, title insurance agents, record holders of any mineral or timber rights, or record easement holders are entitled to notice and copy of a curative affidavit. Provides that a title insurance company that has received the written opinion of the attorney who filed the curative affidavit that the curative affidavit complies with this statute can issue an endorsement to reflect the corrections made by the curative affidavit. Deletes provisions concerning the filing of a curative affidavit by a notary public to correct a notarial certificate.  Provides that a register of deeds can rely on the curative affidavit containing the NC State Bar number of an attorney affiant without a duty to confirm that they are licensed to practice law under GS Chapter 84.

    Amends proposed GS 47-108.27 concerning the criteria that establishes that a material defect, irregularity, or omission has occurred in regards to a recorded instrument, deleting language that provided such has occurred when a proper execution of a corporate conveyance pursuant to GS 47-41.01 has not been properly conducted. Adds language that provides that a material defect, irregularity, or omission has occurred when a recorded instrument fails to comply with proper recitals of consideration, residence, address, or date.

    Makes conforming and clarifying changes.

  • Summary date: Mar 26 2015 - View summary

    Identical to S 460, as filed on 03/25/15.

    Repeals GS 47-36.1, correction of errors in recorded instruments. 

    Enacts new GS 47-36.2, Correction of errors in recorded instruments. Sets out and defines terms as they are used in the statute. Allows obvious description errors or typographical or other minor errors in a recorded deed, deed of trust, or other instrument purporting to convey or transfer an interest in real property to be corrected by recording a corrective affidavit with the register of deeds in every county where the real property is situated as long as a correction of an obvious description is not inconsistent with the description of the property in any recorded subdivision plat. Requires the attorney of record to provide notice and a copy of the affidavit for all persons specified in the statute before recording a corrective affidavit. Sets out further requirements for the notice, including the form of service. If no written objection to the recordation of the corrective affidavit or dispute of the facts recited in the affidavit has been received after 30 days of receipt of the notice, the attorney may record the corrective affidavit and all parties to the instrument being corrected are bound by its terms. Requires the corrective affidavit to be notarized and specifies its contents. Specifies that a corrective affidavit recorded under this statute operates as a correction of the deed, deed of trust, or other instrument and relates back to the date of the original recordation as if the instrument was correct when first recorded. Requires a title insurance company, upon request, to issue an endorsement to reflect the corrections made by the corrective affidavit. Specifies how the register of deeds must record the corrective affidavit. Requires recording costs to be paid by the party submitting the affidavit. Sets out the form of the corrective affidavit. Provides that if a corrective affidavit is solely made by a notary public to correct a notarial certificate that was attached to an instrument already recorded with the register of deeds, the notary public must complete the corrective affidavit.

    Enacts new GS 47-108.27 providing that if an instrument conveying or purporting to convey an interest in real property containing a material defect, irregularity, or omission is recorded by the register of deeds in the county where the property is situated and the defect, irregularity, or omission is not corrected before 10 years have elapsed after recording, then the instrument is deemed effective for all purposes and to the same extent as though the instrument had not contained the defect, irregularity, or omission. Defines a material defect, irregularity, or omission as when the recorded instrument facially fails to comply with: (1) the proper execution of a form of acknowledgment, (2) the proper execution of a corporate conveyance, or (3) the proper affixation of a seal by an officer authorized to execute an instrument by virtue of an office or appointment held by the grantor.

    Applies to corrective affidavits filed on or after October 1, 2015.