Bill Summaries: S427 (2021)

  • Summary date: Mar 31 2021 - View summary

    Enacts new Article 4, Discriminatory Real Property Restrictions, in GS Chapter 22B. Prohibits from including in any written instrument (an instrument relating to or affecting real property, including a deed, plat, will, or trust) any provision (1) restricting in any manner the conveyance, lease, use, mortgage, or encumbrance of real property or (2) otherwise discriminating against any person's or class of persons' status as a protected class. Also prohibits a provision within a written instrument that is commonly understood as describing or referring to a protected class. Defines protected class as a class of persons identified by their particular race, color, national origin, or religion. Declares void and unenforceable a provision in a written instrument that is prohibited regardless of when the written instrument was executed; however, specifies that the written instrument is valid and enforceable in all other respects and must be given effect as though the written instrument does not contain the prohibited provision.

    Allows an owner of a real property interest to discharge and release a provision that is prohibited by recording a form that substantially complies with the description provided in the statute with the register of deeds. While the recorded form discharges and releases a prohibited provision, the written instrument containing the provision otherwise remains in full force and effect and must be construed as though the instrument does not contain the provision.  Requires the register of deeds to record the form upon the following: (1) execution of the form by an owner of an interest in the subject real property before a notary, (2) the form contains the legal description of the real property affected by a provision prohibited, (3) the form contains the date of recording and the book and page of the written instrument containing the provision prohibited, (4) the form complies with all statutory recording requirements, and (5) the recording fee has been paid. 

    Effective October 1, 2021.