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

Amends the act’s title. Makes organizational changes. Adds the following new content:

Part II

Amends GS 7A-224 so that judgment is rendered in a small claims action either when it is signed by the magistrate or rendered electronically by the magistrate (currently, judgment is only rendered when signed by the magistrate). Amends GS 7A-228 (new trials, appeals for trial de novo, how appeal is perfected, oral notice, and dismissal in small claims actions) to change references from entry of judgment to rendering of judgment. Makes language gender neutral. Effective October 1, 2025, and applies to judgments rendered on or after that date.

Part III

Amends GS 7A-228 requiring that a superior or district court or clerk of superior court authorizing a person to appeal as an indigent person make written findings that either: (1) include all GS 1-110 criteria that leads to the authorization of the person to appeal to district court as indigent and information or evidence used to determine the criteria exists, or (2) establish that the authorization was not based on GS 1-110 criteria and the information or evidence used to determine that the person would otherwise be authorized to appeal as an indigent. Changes the grounds for a plaintiff to move to dismiss a defendant’s summary ejectment appeal so that the plaintiff is authorized to do so if the defendant failed to raise a defense orally or writing in small claims court and also either failed to perform one of two listed obligations in the statute. (Currently, GS 7A-228 lists failure to raise defense as one of listed obligations in the statute and does not give priority to any of the obligations).

Amends GS 42-31 (trial by magistrate in summary ejectment proceedings) to require that if a magistrate finds in favor of the plaintiff, their judgment must include an order to the clerk of superior court providing that if the judgment is appealed by the defendant, the clerk of superior court is compelled to pay to the plaintiff any amount specified in GS 42-34 within five business days of a written request by the plaintiff. Makes conforming changes to GS 42-34 (undertaking on appeal and order staying execution for summary ejectment proceedings) to account for new contents of magistrate’s order.

Amends GS 42-34 (undertaking on appeal and order staying execution for summary ejectment proceedings) as follows. Requires that the clerk of superior court's payment to the plaintiff any amount of the rental payments paid by the defendant into the clerk's office which are not claimed by the defendant in any pleading be paid within five business days of the plaintiff's written request. Also requires when it appears by stipulation executed by all of the parties or by final order of the court that the appeal has been resolved, that the clerk of court disbursed accrued money within five business days of a written request. 

Effective October 1, 2024, and applies to judgments rendered on or after that date.

Part IV

Amends GS 14-127 (willful and wanton injury to property) to make it a Class I felony if a person willfully and wantonly damages, injures, or destroys the residential real property of another, and that damage, injury, or destruction results in damages valued at $500, so long as the conduct is not covered under some other provision of law providing greater punishment. Effective December 1, 2024, and applies to offenses committed on or after that date.

Part V

Adds new GS 14-117.8 making it a Class H felony to rent or lease residential real property to another person knowing that the renter or lessor has no lawful ownership in the property or leasehold interest in the property and a Class I felony to list or advertise residential real property for sale knowing that the purported seller has no legal title or authority to sell the property. Specifies that violations of new GS 14-117.8 (fraudulently renting, leasing, or advertising for sale of residential real property) is a violation GS 75-1.1 (unfair methods of competition altering or affecting commerce). Effective December 1, 2024, and applies to offenses committed on or after that date.