GSC SALE OF PROPERTY AMEND/DELAY PROSEC SPLIT. (NEW)

View NCGA Bill Details2021
Senate Bill 196 (Public) Filed Monday, March 8, 2021
AN ACT TO (I) UPDATE THE MAILING METHOD OF NOTICE TO A JUDGMENT DEBTOR OF AN EXECUTION SALE OF REAL PROPERTY, (II) CLARIFY THE EFFECTS OF A DEFAULT BID IN PRIVATE JUDICIAL SALES AND PUBLIC OR PRIVATE PARTITION SALES, (III) AMEND THE TAX FORECLOSURE STATUTES AND MAKE TECHNICAL CHANGES, (IV) MAKE AMENDMENTS AFFECTING THE VALIDITY OF NOTARIAL ACTS, (V) MAKE AMENDMENTS AFFECTING REAL PROPERTY, AS RECOMMENDED BY THE GENERAL STATUTES COMMISSION, AND (VI) TO DELAY THE REASSIGNMENT OF DISTRICT 36, BURKE, CALDWELL, AND CATAWBA COUNTIES, INTO TWO SEPARATE PROSECUTORIAL DISTRICTS.
Intro. by Edwards, Galey.

Status: Ch. SL 2021-91 (Jul 22 2021)

SOG comments (2):

Long title change

House committee substitute to the 1st edition changed the long title. Original long title was AN ACT TO (I) UPDATE THE MAILING METHOD OF NOTICE TO A JUDGMENT DEBTOR OF AN EXECUTION SALE OF REAL PROPERTY, (II) CLARIFY THE EFFECTS OF A DEFAULT BID IN PRIVATE JUDICIAL SALES AND PUBLIC OR PRIVATE PARTITION SALES, AND (III) PROVIDE THAT IN A TAX FORECLOSURE ACTION A COMMISSIONER'S FEE SHALL NOT BE INCLUDED IN THE AMOUNT NECESSARY TO REDEEM THE REAL PROPERTY DURING THE PERIOD BETWEEN THE DATE OF SALE AND THE JUDGMENT CONFIRMING THE SALE AND MAKE TECHNICAL CHANGES, AS RECOMMENDED BY THE GENERAL STATUTES COMMISSION.

Long title change

House committee substitute to the 2nd edition changed the long title. Previous long title was AN ACT TO (I) UPDATE THE MAILING METHOD OF NOTICE TO A JUDGMENT DEBTOR OF AN EXECUTION SALE OF REAL PROPERTY, (II) CLARIFY THE EFFECTS OF A DEFAULT BID IN PRIVATE JUDICIAL SALES AND PUBLIC OR PRIVATE PARTITION SALES, (III) AMEND THE TAX FORECLOSURE STATUTES AND MAKE TECHNICAL CHANGES, (IV) MAKE AMENDMENTS AFFECTING THE VALIDITY OF NOTARIAL ACTS, AND (V) MAKE AMENDMENTS AFFECTING REAL PROPERTY, AS RECOMMENDED BY THE GENERAL STATUTES COMMISSION.

Bill History:

S 196/S.L. 2021-91

Bill Summaries:

  • Summary date: Jul 26 2021 - More information

    AN ACT TO (I) UPDATE THE MAILING METHOD OF NOTICE TO A JUDGMENT DEBTOR OF AN EXECUTION SALE OF REAL PROPERTY, (II) CLARIFY THE EFFECTS OF A DEFAULT BID IN PRIVATE JUDICIAL SALES AND PUBLIC OR PRIVATE PARTITION SALES, (III) AMEND THE TAX FORECLOSURE STATUTES AND MAKE TECHNICAL CHANGES, (IV) MAKE AMENDMENTS AFFECTING THE VALIDITY OF NOTARIAL ACTS, (V) MAKE AMENDMENTS AFFECTING REAL PROPERTY, AS RECOMMENDED BY THE GENERAL STATUTES COMMISSION, AND (VI) TO DELAY THE REASSIGNMENT OF DISTRICT 36, BURKE, CALDWELL, AND CATAWBA COUNTIES, INTO TWO SEPARATE PROSECUTORIAL DISTRICTS. SL 2021-91. Enacted July 22, 2021. Parts IV and V are effective October 1, 2021. The remainder is effective July 22, 2021, except as otherwise provided.


  • Summary date: Jun 30 2021 - More information

    House committee substitute adds the following to the 2nd edition.

    Part VI.

    Amends Section 3 of SL 2018-121, which modifies the State's prosecutorial districts, including Prosecutorial District 36 (formerly consisting of Burke, Caldwell, and Catawba counties, amended by Section 3 to move Catawba to new District 44). Further extends the office and term of the district attorney for Prosecutorial District 36 as it formerly existed until the expiration of the term expiring December 31, 2026 (was, December 31, 2022). Makes conforming changes. Makes conforming changes to Section 1 of SL 2019-229, which increases the number of district attorneys for Prosecutorial District 36, as amended by SL 2018-121. Makes conforming changes to the act's titles.


  • Summary date: Jun 29 2021 - More information

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

    Part III.

    Further amends GS 105-374, concerning authorized foreclosure actions in the nature of an action to foreclose a mortgage. Adds a new provision to subsection (c), providing that a trustee in a deed of trust cannot be made a party to or served in a foreclosure action. Eliminates the proposed changes to subsection (i) to clarify that costs include a commissioner's fee of up to 5% of the purchase price for foreclosure actions in which the court enters a judgment confirming the sale of real property, and eliminates the inclusion of a commissioner's fee in the cost for redemption in the case of redemption prior to the judgment. Further amends subsection (p), adding a new provision to specify that a judgment of confirmation bears interest at the same rate as a judgment under GS 105-375 (governing docketed certificates of taxes due on real property which constitute a judgment against the real property if certain criteria are met).

    Amends GS 105-375, which governs the in rem method of foreclosure for real property docketed for due taxes, as discussed above. Regarding required notice by tax collectors subject to the statute's procedures, aligns the 30-day notice requirement of lienholders prior to docketing a judgment under the statute with the description of lienholders required to be served under GS 105-374(c) (regarding actions to foreclose tax liens). Further, explicitly requires 30 days' notice to all lienholders of record by the sheriff prior to the date of sale in the same manner as the taxpayer. Makes technical and clarifying changes.  Makes language gender-neutral.

    Makes a technical change to the proposed changes to GS 105-373, concerning settlements of tax collectors. 

    Makes conforming changes to the Part's effective date provisions.

    Adds the following content.

    Part IV.

    Amends GS 10B-65 to validate notary acknowledgments performed before July 1, 2013 (was, December 1, 2005), that bear a notary seal. Specifies that the statute, which validates acts of notaries public in a number of specified instances, applies to notarial acts performed on or before April 1, 2021 (was, April 1, 2013). Makes additional clarifying changes.

    Amends GS 10B-69 to deem a notarial certificate that was contained in a form issued by a State agency before April 1, 2021 (was, April 1, 2013), to be valid so long as the certificate complied with the law at the time the form was issued.

    Amends GS 10B-71, which validates any acknowledgment taken and any instrument notarized by a person who after recommissioning failed to again take the oath as a notary public, to make the statute applicable to notarial acts performed on or after May 15, 2004, and before April 1, 2021 (was, April 1, 2013). Makes clarifying changes.

    Amends GS 47-48 (clerks’ and registers of deeds certificate failing to pass on all prior certificates), to make the statute applicable to all instruments recorded in any of the state’s counties before April 1, 2021 (was, April 1, 2013). Makes clarifying changes. Makes language gender-neutral.

    Amends GS 47-51 to provide that all deeds executed before April 1, 2021 (was, April 1, 2013), by an officer authorized to execute a deed by virtue of the office or appointment, in which the officer has omitted to affix a seal after the officer's signature, are not invalid on account of the omission of the seal. Makes clarifying changes. Makes language gender-neutral.

    Amends GS 47-53, concerning validation when seals have been omitted in the execution of any deed, mortgage, or other instrument required to be registered, to make the statute applicable to acknowledgments, private examinations, or proofs taken before April 1, 2021 (was, April 1, 2013). Makes additional clarifying changes.

    Amends GS 47-53.1, concerning the validation of an acknowledgment that lacks the required seal, to make the statute applicable to deeds and other instruments acknowledged before April 1, 2021 (was, April 1, 2013). Makes clarifying changes.

    Amends GS 47-72 to provide that in all cases before April 1, 2021 (was, April 1, 2013), where a deed conveying lands purported to be executed by a corporation fails to include the corporate name, but the deed contains the required signatures and has been registered in the appropriate county, the defective execution is considered valid. Makes clarifying changes.

    Amends GS 47-97, concerning the validation of a corporate deed when there is a mistake as to the officers’ names, to apply to deeds executed before April 1, 2021 (was, April 1, 2013).

    Amends GS 47-97.1, concerning the validation of deeds of a corporation that include an error in the acknowledgment or probate, to apply to cases where the deed was filed for registration before April 1, 2021 (was, April 1, 2013). Makes clarifying changes.

    Amends GS 47-108.6, concerning the validation of certain conveyances of foreign dissolved corporations, to apply to cases before April 1, 2021 (was, April 1, 2013). Makes clarifying changes.

    Amends GS 47-108.11, concerning the validation of recorded instruments where seals have been omitted, to make the statute applicable to instruments recorded or registered before April 1, 2021 (was, April 1, 2013). Makes additional clarifying changes.

    Amends GS 47-108.20, concerning the validation of certain recorded instruments that were not acknowledged, to make the statute applicable to instruments recorded before April 1, 2021 (was, April 1, 2013). Makes conforming changes.

    Repeals GS 10B-72, which validated any acknowledgment taken and any instrument notarized by a person who after recommissioning failed to again take the oath as a notary public if the act was performed on or after August 28, 2010, and before January 12, 2012.

    Amends GS 47-2.2 to provide that if the proof or acknowledgment of any instrument is before a notary public of any state other than North Carolina and the instrument does not state, as part of the proof or acknowledgment or as part of the notary's seal (previously did not require that be a part of the proof or acknowledgment or a part of the seal), that the notary's commission does not expire or is a lifetime appointment, then the certificate of proof or acknowledgment must be accompanied by the certificate of the county official before whom the notary qualifies for office or of a state officer authorized to issue certificates regarding notary commission status, stating that the notary public was at the time the certificate bears date an acting notary public of such state, and that it is the notary’s genuine signature. Makes clarifying changes. Makes language gender-neutral.

    Amends GS 47-37.1 to deem a notarial certificate that complies with the provisions of Part 5 (Certificate Forms) of Article 2 of GS Chapter 10B a sufficient from of probate or acknowledgment for the purposes of GS Chapter 47 (Probate and Registration). Makes conforming and clarifying changes. 

    Effective October 1, 2021.

    Part V.

    Revises GS 41-56 regarding the creation of tenancy by the entirety in real property. Makes a clarifying change to refer to a grantor rather than an individual. Makes joinder of spouses subject to the provisions of GS 52-10.1, which governs separation agreements, rather than GS 52-11, which governs antenuptial contracts and torts. Makes technical and clarifying changes. 

    Revises the exemptions set forth in GS 41-75, exempting from the provisions governing joint tenancy of Article 6, accounts established under GS 41-2.1 (governs right of survivorship in bank deposits created by written agreement) or GS 41-2.2 (governing joint ownership of securities) to the extent the provisions are inconsistent with Article 6 (previously erroneously referenced statutes in GS Chapter 42, which provides landlord/tenant law). 

    Expands GS 47-18 to deem no rights of first refusal and rights of first offer valid to pass any property interest as against lien creditors or purchasers for valuable consideration from the donor, bargainor, or lessor except from the time of the right's or option's registration in the specified county (previously only specified land conveyances, contracts to convey, and options to convey). Makes technical changes. 

    Makes the following changes to GS 93A-12 regarding disputed monies in real property transactions. Adds a new provision defining an escrow agent to mean a licensed real estate broker, an attorney licensed to practice in the state, or a title insurance company or title insurance agent licensed to conduct business in the state. Makes changes throughout the statute to replace references to licensed real estate brokers and attorneys with "escrow agent," thereby expanding the statute by making the authorities and requirements regarding disputed monies applicable to title insurance companies or title insurance agents licensed to practice in the state. Makes technical changes. 

    Amends SL 2017-110 to revise the scope of the act to apply to instruments filed on or after August 31, 2018 (was, curative affidavits; SL 2017-110 provided for changes in correcting nonmaterial errors in recorded instruments of title, created a curative procedure for obvious description errors in title documents, and created a seven-year curative provision for certain defects in records title instruments).

    Effective October 1, 2021. 

    Makes conforming changes to the act's long title and effective date provision.


  • Summary date: Mar 8 2021 - More information

    Part I.

    Amends GS 1-339.54 concerning the 10 days' notice required prior to the execution sale of a judgement debtor's real property. Changes the method of notice required for a judgement debtor not found in the county to now require the sheriff to send a copy of the notice of sale by registered mail or certified mail, return receipt requested (previously, registered mail only) to the judgement debtor at the judgement debtor's last known address. Maintains service requirements specified for judgement debtors not found in the county. Makes additional clarifying changes. Makes language gender neutral. Applies to executions issued on or after October 1, 2021. 

    Part II.

    Enacts GS 1-339.36(c) to establish that the liability provisions of subsections (e) and (f) of GS 1-339.30 apply to a defaulting bidder in a private judicial sale of real or personal property. Makes conforming changes to the caption.

    Enacts GS 46A-84.5 to permit any party to a partition proceeding or an officer designated to make the sale to petition the court at any time to revoke its order confirming the partition sale if a purchaser defaults on the purchaser's bid. Requires the petitioner to service all parties required under Rule 5 of the Rules of Civil Procedure, and serve the purchaser under Rule 4(j) if the purchaser is not a party. If the court finds default and that the purchaser cannot cure the default, requires the court to revoke its order of confirmation and order a resale. 

    Makes a technical change to GS 46A-83 to refer to service (rather than delivery of a copy) of a petition for revocation of an order confirming the partition sale of real property properly made within 15 days of entry pursuant to the statute's provisions. 

    Applies to actions or proceedings pending on or commenced on or after the date the act becomes law. 

    Part III.

    Makes the following changes to GS 105-374, concerning authorized foreclosure actions in the nature of an action to foreclose a mortgage. Maintains that taxing units can proceed under the statute on the tax lien created by GS 105-355(a). Eliminates language that allows taxing units to proceed under the statute for tax liens acquired at a tax lien sale held under former GS 105-369 prior to July 1, 1983, with or without a lien sale certificate (the statute has since been amended to provide for advertisement of tax liens). Clarifies that costs include a commissioner's fee of up to 5% of the purchase price for foreclosure actions in which the court enters a judgement confirming the sale of real property. No longer includes a commissioner's fee in the cost for redemption in the case of redemption prior to the judgement. Makes clarifying, technical, and organizational changes. Makes language gender neutral. Applies to tax foreclosure actions commenced on or after October 1, 2021. 

    Amends GS 105-373, concerning settlements of tax collectors. No longer refers to tax sale certificates concerning settlements at the end of a tax collector's term or vacancy during term, and delivery of tax receipts and tax records to the collector's successor. Corrects a statutory reference regarding collection of classified motor vehicle taxes. Makes clarifying, technical, and organizational changes. Makes language gender neutral. 

    Amends GS 105-378, concerning the limitations of remedies for counties and municipalities for tax collection or lien enforcement. No longer refers to tax sales certificates. Makes clarifying and technical changes. 

    Part III is effective October 1, 2021.


Printer-friendly: Click to view