Bill Summary for H 690 (2011-2012)

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Bill: AMEND EVIDENCE & DNA EXPUNCTION LAWS (NEW).

Summary date: 

Apr 6 2011

Bill Information:

View NCGA Bill Details2011-2012 Session
House Bill 690 (Public) Filed Wednesday, April 6, 2011
TO REQUIRE THAT RESIDENTIAL REAL ESTATE CLOSINGS AND SETTLEMENTS UNDER THE GOOD FUNDS SETTLEMENT ACT BE SUPERVISED BY ATTORNEYS LICENSED IN THIS STATE, TO REQUIRE THAT INTEREST EARNED ON REAL ESTATE SETTLEMENT FUNDS HELD IN TRUST OR ESCROW ACCOUNTS BE PAID INTO THE NORTH CAROLINA STATE BAR’S INTEREST ON LAWYERS’ TRUST ACCOUNT FUND, AND TO PROVIDE A PRIVATE CAUSE OF ACTION FOR PERSONS HARMED BY THE UNAUTHORIZED PRACTICE OF LAW.
Intro. by Stevens, Jordan.

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Bill summary

Enacts new GS 45A-9, requiring closings and settlements under the Good Funds Settlement Act to be supervised and conducted by a licensed attorney; however, allows a nonattorney employee of a corporation selling real property in a seller-financed real estate transaction to prepare purchase money loan documents to secure the indebtedness of the purchaser. Details insurance coverage for attorneys performing closings or settlements and directs the NC State Bar to make available to the public a list of attorneys in compliance. Enacts new GS 45A-10, directing a settlement agent who maintains a trust or escrow account to receive and disburse closing funds and loan funds to pay any interest earned to the NC State Bar to support purposes authorized under the Interest on Lawyers Trust Account Program. Also directs the State Bar to adopt rules as necessary. Makes a conforming change to GS 84-21. Effective January 1, 2012.
Amends GS 84-8, providing that a violation of GS 84-4 through GS 84-6 (relating to the unauthorized practice of law) is a Class I felony (currently, a Class 1 misdemeanor). Adds that any person in violation of GS 84-4 through 84-6 due solely to an inactive license after failure to timely pay state bar dues or failure to comply with continuing legal education requirements will be guilty of a Class 1 misdemeanor. Specifies that no person is entitled to collect any fee for services performed in violation of GS 84-4 through 84-6. Moves the provision exempting legal clinics of law schools, certain law students, and certain lawyers supervised by nonprofit corporations from the provisions of GS 84-4 through 84-6, to new GS 84-7-1. Makes other clarifying changes. Applies to offenses committed on or after December 1, 2011.
Enacts new GS 84-10.1, providing any person with a cause of action to recover treble damages and reasonable attorneys’ fees, if the person is damaged by a person’s violation of any of the provisions in GS 84-4 through 84-6 or by a person fraudulently holding himself or herself out as a NC certified paralegal. Effective October 1, 2011.