Bill Summary for S 332 (2019-2020)

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Summary date: 

Jun 27 2019

Bill Information:

View NCGA Bill Details2019-2020 Session
Senate Bill 332 (Public) Filed Thursday, March 21, 2019
Intro. by Daniel.

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Bill summary

House committee substitute makes the following changes to the 2nd edition.

Makes technical changes to the proposed changes to GS 1-52(18).

Adds new Section 2.1, providing the following. 

Enacts GS Chapter 47I, Notice of Settlement Act, to create an additional, nonexclusive procedure for registering a property interest in real property through the use of a notice of settlement, and establishing priority in a grantee of a conveyance or lease from the time of filing of the notice settlement. Sets forth 14 defined terms applicable to the Chapter. Allows notice agent to register an instrument, upon contract between the current owner of record and a grantee, designated a Notice of Settlement (Notice) in the county register of deeds in which real property is situated with reference to the settlement that the notice agent in good faith reasonably believes will occur within 60 days of the registration. Provides for the registration and indexing of the Notice and a registration fee. Details the required form and contents of the Notice.

Provides that the registration of the Notice is constructive notice of the anticipated settlement and interest of the grantee or mortgagee affecting the real property identified in the Notice. Provides that registration of the Notice establishes priority of title of the grantee or mortgage, as described, except over four specified types of interests or claims. Allows a closing attorney or settlement agent to pay any potential liens upon the real property that is the subject of the Notice or any known liabilities of the current owner of record that can affect the title. Clarifies that the owner of record is not relieved from any personal liability under the statute. Provides for name changes between the registered Notice to the registered settlement instrument. Allows for an attorney to sign a statement to register that provides that the attorney has updated the title on applicable online registries and identified any conveyances, liens, or encumbrances found online after registration of the Notice. Details duration, priority, and nonrenewability of the Notice. Allows for an Additional Notice of Settlement. Provides a form for early termination of a Notice.

Provides a severability clause for the Chapter.

Makes conforming changes to GS 47-18, GS 47-20, and GS 161-14.1, concerning priority and subsequent recordings. 

Applies to notices of settlement registered on or after January 1, 2020.

Adds Section 2.2, providing the following.

Makes clarifying changes to Section 4.1 of SL 2018-80 regarding the effective dates of the act.

Amends GS 46-17.1 to require the first page of all deeds or deeds of trust to be registered to show the name of the drafter (rather than the person or law firm who drafted the instrument). Clarifies that the register of deeds is not required to verify or make inquiry concerning the capacity or authority of the person or entity shown as the drafter. Makes conforming and technical deletions. 

Adds Section 3, providing a severability clause.

Amends the act's long title.