Bill Summary for H 690 (2011-2012)

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Summary date: 

May 18 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

House committee substitute makes the following changes to 1st edition. Deletes proposed GS 45A-9, which required closings and settlements under the Good Funds Settlement Act to be supervised and conducted by a licensed attorney. Makes a conforming change to the bill title. Deletes proposed GS 84-8(b), which made 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 guilty of a Class 1 misdemeanor. Amends GS 84-8, providing that any person, corporation, or association that violates any of the provisions of GS 84.4 through 84.6 or 84-9 will be guilty of a Class 1 misdemeanor (Class I felony in previous edition). Prohibits any person from collecting a fee for services performed in violation of GS 84.4 through 84.6, 84-9, or proposed 84-10.1. Makes a conforming change by repealing GS 84-10. Rewrites proposed GS 84-10.1 to clarify that there is a private cause of action for a person who is damaged by any person who (1) violates any of the provisions of GS 84-4 through 84-6 or 84-9, (2) fraudulently holds himself or herself out as a certified paralegal; or (3) knowingly aids and abets another to commit the unauthorized practice of law, to recover damages (was, treble damages) and reasonable attorneys’ fees.