PRESERVE TENANCY BY THE ENTIRETY.

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View NCGA Bill Details2015-2016 Session
House Bill 1061 (Public) Filed Tuesday, May 10, 2016
AN ACT TO MAKE CONFORMING AMENDMENTS TO CLARIFY THAT TENANCY BY THE ENTIRETY IS PRESERVED IN THIS STATE IN LIGHT OF THE UNITED STATES SUPREME COURT DECISION IN OBERGEFELL V. HODGES, AS RECOMMENDED BY THE GENERAL STATUTES COMMISSION.
Intro. by Bryan.
Status: Re-ref Com On Rules and Operations of the Senate (Senate Action) (Jun 24 2016)

SOG comments (1):

Long title change

Submitted by jhenders@sog.unc.edu on

House committee substitute to the 1st edition changed the long title. Original long title was AN ACT TO MAKE CONFORMING AMENDMENTS TO CLARIFY THAT TENANCY BY THE ENTIRETY IS PRESERVED IN THIS STATE IN LIGHT OF THE UNITED STATES SUPREME COURT DECISION IN OBERGEFELL V. HODGES, AS RECOMMENDED BY THE GENERAL STATUTES COMMISSION.

Bill History:

H 1061

Bill Summaries:

  • Bill H 1061 (2015-2016)
    Summary date: Jun 8 2016 - View Summary

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

    Places Sections 1 through 6 of the previous edition into new Part I of the act, titled Preserve Tenancy by the Entirety.

    Creates new Part II of the act, titled Mortgage/Deed of Trust Changes, that provides the following.

    Current GS 39-13 establishes that when a purchaser of real estate executes a purchase money mortgage on the property, the purchase-money mortgage is good and effectual against the purchaser's spouse as well as the purchaser, without requiring the spouse to join in the execution of such mortgage or deed of trust. Amends GS 39-13 to instead provide that a mortgage or deed of trust given by the purchaser of real property to secure a loan, the proceeds of which were used to pay all or a portion of the purchase price of the encumbered real property, regardless of whether the secured party of the purchase money mortgage is the seller of the real property or a third party lender, is good and effectual against his or her spouse as well as the purchaser, without requiring the spouse to join in the execution of the mortgage or deed of trust.

    Current GS 29-30(g) establishes that neither the household furnishings in the dwelling house nor the life estates taken by election of the surviving spouse of the surviving spouse's statutory elective share, in lieu of the surviving spouse's intestate share, are subject to the payment of debts due from the estate of the deceased spouse, except those debts, as specified, that are secured by the property. Amends the second exception to subsection (g) to delete the term "purchase money mortgage" and to instead specify that a mortgage or deed of trust given by the deceased spouse to secure a loan, the proceeds of which were used to pay all or part of the purchase price of the encumbered property, regardless of whether the secured party is the seller of the real property or a third-party lender, may subject the household furnishings in the dwelling house or life estates taken by election of the surviving spouse under the statute to payments of debt due from the estate of the deceased spouse. Makes technical changes.

    Provides that Part II of the act applies to mortgages and deeds of trust entered into on or after the date the act becomes law.

    Courts/Judiciary, Civil, Civil Law, Development, Land Use and Housing, Property and Housing
    GS 29, GS 39, GS 41
  • Bill H 1061 (2015-2016)
    Summary date: May 10 2016 - View Summary

    Identical to S 806 filed on 5/3/16.

    Amends GS 39-13.6 to provide that unless a contrary intention is expressed in the conveyance (currently, no provision providing for contrary intention expressed in the conveyance to control), a conveyance of real property, or any interest therein, to two individuals then married to each other vests title in them as tenants by the entirety when the conveyance is to a named individual and wife, or a named individual and husband, or a named individual and spouse (currently, a named individual and spouse is not included in language creating a tenancy by the entirety) or two named individuals, whether or not identified in the conveyance as being husband and wife, spouses, or married to each other, if at the time of the conveyance they are legally married to each other.

    Amends GS 39-13.3, GS 39-13.6, GS 39-13.7, GS 41-2, and GS 41-2.5 to change language from "husband and wife" and "husband or wife" in existing tenancy by the entirety provisions to "spouses," "married grantor," "married individual," or "two individuals married to each other" for the purpose of reflecting rights establish under federal law by the decision of the Supreme Court in Obergefell v. Hodges which became effective in North Carolina on October 10, 2014, by application of General Synod of the United Church of Christ v. Resinger.   

    Amends GS 41-2(b) clarify that any joint tenancy interest held by two individuals then married to each other, unless otherwise specified, is deemed to be held by them (currently, existing language does not include "by them" language) as a single tenancy by the entirety and is to be treated as a single party when determining interests in the joint tenancy with right of survivorship.

    Amends GS 41.2.5 concerning tenancy by the entirety in mobile homes to specify that the definition of mobile home provided in subsection (c) only applies to this statute (was, Article).  Makes clarifying change to GS 41-2.5(b).

    This act is effective when it becomes law and applies to conveyances made on or after October 10, 2014.

    Courts/Judiciary, Civil, Civil Law, Development, Land Use and Housing, Property and Housing
    GS 39, GS 41
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