House committee substitute to the 3rd edition makes the following changes.  Makes conforming changes to act’s long title and effective date.  Makes organizational changes.

Section 2 (was, Section 1).

Amends GS 161-32, concerning identifying verification and suspicious instruments, as follows. Adds and defines new term, government-issued photographic identification card. Modifies terms instrument and suspicious instrument (which now means an instrument submitted for registration for which the register of deeds has found any of the following; (1) instrument purports not to be subject to the laws of the United States or the laws of this State; (2) instrument does not conform to registration requirements established by the laws of this State; or (3) instrument is submitted by an individual who is not a trusted submitter and the identity verification requirements of this statute are not met). Removes term trusted filer.  Refers to identity verification rather than government-issued photo ID in the general requirement for register of deeds. Now only allows for submission by a trusted submitter, not their authorized agent. Adds information about the individual’s identity verification to the information the register of deeds must record when individuals who are not trusted submitters present an instrument to them for registration. Expands the instances in which a register of deeds must require identity verification from an individual who is not a trusted submitted to include when an instrument is presented by registration by U.S. mail or other paid third-party delivery service. Allows for redaction of photo copies of ID’s of any information the individual wishes to keep confidential except for their name, address, photograph, ID card number, and expiration. Expands the types of court orders that can authorize disclosure of records under GS 161-32(b) to include district court orders.

Now, instructs the register of deeds to refuse to register an instrument if one of the following instances occur: (1) the register of deeds deems the instrument a suspicious instrument or (2) the individual submitting the instrument is not a trusted submitter and the name on the ID does not match the name of the grantor or conveying party in the instrument presented for registration (was, registration must also be refused when the individual submitting the instrument is not a trusted submitter or representative thereof and fails to produce the required ID). Authorizes the register of deeds to also report a suspicious instrument to an appropriate law enforcement agency. Removes provisions requiring the register of deeds to publish notice on its website that knowingly and intentionally making a false statement under oath or affirmation in any instrument presented to the register of deeds for registration that purports to convey title to, or an interest in, real property, such as a deed, deed of trust, or other similar document, is perjury and is punishable as a felony. Removes requirement that the Administrative Office of the Courts (AOC) develop a database of trusted filers. Makes conforming changes.

Effective October 1, 2025 (was, July 1, 2026), and applies to instruments and documents presented for registration on or after that date.

Section 4 (was, Section 2).

Replaces the expedited procedure originally set forth in GS 41-10.2. Instead, maintains the owner’s right to bring a civil action by filing a verified complaint, with original jurisdiction in the district court, and a right of direct verified appeal to the NC Court of Appeals. Now allows for ex parte relief including entry of a temporary restraining order, and entry of any other temporary or permanent orders necessary to protect plaintiff’s ownership interests. Requires the plaintiff to file a notice of lis pendens upon filing an action. Replaces the provisions regarding notice and proof of service for action under the statute; instead describes sufficiency of service under Rules 4 and 5 of the Rules of Civil Procedure if the party's address is used from specified sources. Allows chief district court judges to authorize magistrates to hear ex parte motions. Establishes a time frame for scheduling ex parte hearings. Details calendaring requirements and grants the hearing priority on the court calendar.

Provides for a permanent order to be entered upon a court finding the recorded instrument to be false and void as a matter of law after all parties are given the opportunity to be heard (replacing the authority to enter an order removing the cloud from the title described in the previous edition). Replaces reference to pre-filing injunction with permanent injunction and adds the following to the relief available: (1) imposing Rule 11 sanctions against the offending party or their attorney; (2) ordering execution of any additional instruments necessary or required to clear the title to the property pursuant to Rule 70; and (3) any other relief the court deems just and proper. Requires the register of deeds to record and cross-index the court's order under the statute, and mark the previously recorded instrument with the specified statement (previously, permitted the marking). Further requires that the order be recorded by the register of deeds as a subsequent instrument under state law at no cost. Makes it a Class G felony to initiate an action under the statute knowing that the subject instrument is not false, fictitious, or fraudulent. Applies the NC Rules of Civil Procedure to actions under the statute.

Removes exclusions of wills and other testamentary documents and makes clarifying change to instrument in GS 41-10.2 (pertaining to procedures for fraudulent instruments). Makes conforming changes, including to the statute’s title.

Effective October 1, 2025 (was July 1, 2026), and applies to causes of action filed on or after that date and to offenses committed on or after that.

Section 5 (was, Section 4).

Expands the forms that the AOC must create for new GS 41-10.2 to include a form notice of lis pendens. Requires both forms to be available on its website by October 1, 2025 (was, no deadline). Makes technical changes.

Adds the following content.

Section 1.

Expands the scope of conduct prohibited under GS 14-122 (concerning forgery of deeds) to make it a Class H felony for any person to present for filing or recording in a public record or a private record generally available to the public a deed or transfer of real property of an owner, knowing or having reason to know that the deed or conveyance is false or contains a materially false, fictitious, or fraudulent statement or representation.  

Amends GS 14-117.8 to modify the Class H felony offense of fraudulent renting or leasing to include renting or leasing real property to another person knowing that the renter, tenant, lessee, landlord, or lessor (was only renter) has no lawful ownership or leasehold interest in the property. Makes it a violation of GS 75-1.1 to knowingly rent, lease, list or advertise (was only rent or lease) residential real property to another person knowing that the renter, tenant, lessee, lessor, landlord, or the person soliciting the listing or advertisement (was only the renter or lessor) has no lawful ownership or leasehold interest in the property. Authorizes a judge presiding over a civil suit brought by a person alleging that a violation of the statute constitutes a violation of GS 75-1.1 to allow a reasonable attorney fee without finding there was an unwarranted refusal by the alleged violator to fully resolve the matter that is the basis of the suit.

Applies to offenses committed on or after December 1, 2025.

Changes the effective date of the changes to GS 14-209 from July 1, 2026, to December 1, 2025.

Section 3.

Directs the Legislative Research Commission (LRC) to study the feasibility of creating a fraud detection alert system for no cost, with automatic enrollment of persons who submit instruments, in the fraud detection alert system. Directs the register of deeds to provide a notice explaining the system, and how to opt out, prior to enrollment. Lists three required evaluations to be included in the study, including examining the fiscal impact on the State, counties, and/or registers of deeds, as specified. Requires the LRC to report its findings to the 2026 Regular Session of the NCGA.

Section 6.

Enacts GS 41-108.30 (no presumptions of priority for certain instruments), as follows. Directs that instruments, as defined, do not have a presumption of priority based upon the time of registration and do not constitute constructive notice or color of title if either: (1) the instrument does not comply with the provisions of the specified sections of GS Chapter 47 (governing probate and registration); or (2) the instrument does not contain a signature and acknowledgement duly acknowledged before an officer authorized to perform acknowledgements as required for recording of at least one record owner at the time the conveyance is made. 

Enacts GS 47-18.4 to require all deeds or other conveyances of title (other than by court order) presented for registration to include a source of title to the grantor, as described. Prohibits accepting the conveyance for registration if submitted by anyone other than a trusted submitter, as defined by new GS 161-32, unless one of three specified criteria apply, providing that the grantor matches the owner identified in the property's tax listing. Provides for legal verification in the event of material inconsistency in the grantor's identity and the county tax records, as described.

Applies to deeds or other conveyances (other than by court order) presented for registration on or after October 1, 2025.

Section 7.

Makes the provisions of GS 161-31 applicable statewide. Mandates all register of deeds to refuse deeds transferring real property for registration unless the county tax collector has verified the name of all owners of the parcel listed in the tax records and that no tax liens exist on the property (previously, specific county boards of commissioners could require registers of deeds to refuse registration if tax liens existed on the property). Allows for registration without verification if the deed is submitted by a trusted submitter as defined by new GS 161-32 and contains the specified statement of the licensed attorney who prepared the document, as amended to include both delinquent and current taxes owed to be paid at closing. Effective October 1, 2025, and applies to deeds or other conveyances of title, other than by court order, presented for registration on or after that date.

Enacts GS 93A-6.3 directing the NC Real Estate Commission to initiate disciplinary action (including suspension or revocation of a license), for any licensed real estate broker who is found to have participated in the preparation, execution, or filing of a fraudulent deed and deemed to have acted outside the scope of their licensure and considered an unauthorized individual for the purposes of that transaction. Provides for temporary suspensions of licensure without a prior hearing to protect the public interest, safety, or welfare, so long as a formal hearing is scheduled as provided in the statute. Provides for continuances. Directs for all proceedings to be conducted and concluded without undue delay.