AN ACT TO CLARIFY THE PROCESS FOR CORRECTING NONMATERIAL ERRORS IN RECORDED INSTRUMENTS OF TITLE; TO CREATE A CURATIVE PROCEDURE FOR OBVIOUS DESCRIPTION ERRORS IN DOCUMENTS OF TITLE; AND TO CREATE A TEN‑YEAR CURATIVE PROVISION FOR CERTAIN DEFECTS IN RECORDED INSTRUMENTS OF TITLE.
House committee substitute makes the following changes to the 1st edition:
Amends the long title.
Replaces the phrase corrective affidavit with curative affidavit throughout the act, with the exception of GS 47-36.1, which still concerns corrective affidavits.
Amends GS 47-36.1, repealed in the previous edition, adding subsection (a1) that provides that a corrective affidavit cannot be used to correct an obvious description error. Makes conforming and clarifying changes.
Amends GS 47-36.2(a)(2), the definition for curative affidavit (was, corrective affidavit), deleting language from the definition that provided that such an affidavit can correct typographical or other minor errors. Makes technical changes to other definitions. Adds new term title insurance agent, meaning a person or entity licensed by the Commissioner of Insurance and contractually authorized by one or more title insurance company to issue commitments and policies. Requires curative affidavits to include an attorney's NC State Bar Number. Clarifies that notice and copy of a curative affidavit can be made in any manner provided by the Rules of Civil Procedure for service of summons, including delivered by personal service or sent by registered mail. Provides that insurance companies, title insurance agents, record holders of any mineral or timber rights, or record easement holders are entitled to notice and copy of a curative affidavit. Provides that a title insurance company that has received the written opinion of the attorney who filed the curative affidavit that the curative affidavit complies with this statute can issue an endorsement to reflect the corrections made by the curative affidavit. Deletes provisions concerning the filing of a curative affidavit by a notary public to correct a notarial certificate. Provides that a register of deeds can rely on the curative affidavit containing the NC State Bar number of an attorney affiant without a duty to confirm that they are licensed to practice law under GS Chapter 84.
Amends proposed GS 47-108.27 concerning the criteria that establishes that a material defect, irregularity, or omission has occurred in regards to a recorded instrument, deleting language that provided such has occurred when a proper execution of a corporate conveyance pursuant to GS 47-41.01 has not been properly conducted. Adds language that provides that a material defect, irregularity, or omission has occurred when a recorded instrument fails to comply with proper recitals of consideration, residence, address, or date.
Makes conforming and clarifying changes.
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