Bill Summary for S 460 (2015-2016)

Summary date: 

Mar 25 2015

Bill Information:

View NCGA Bill Details2015-2016 Session
Senate Bill 460 (Public) Filed Wednesday, March 25, 2015
AN ACT TO AMEND THE PROCEDURES FOR CORRECTING TYPOGRAPHICAL, OBVIOUS DESCRIPTION, OR OTHER MINOR ERRORS IN RECORDED INSTRUMENTS AND TO CREATE A TEN-YEAR CURATIVE PROVISION FOR CERTAIN DEFECTS IN RECORDED INSTRUMENTS.
Intro. by Daniel.

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Bill summary

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.

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