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

Section 1.

Makes the proposed offense of presenting a fraudulent deed under GS 14-122 a Class H felony (was a Class G felony, unless the value of the property is $100,000 or more, then a Class C felony). Makes language gender neutral and makes technical changes.

Section 1.2.

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 or lessor) 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 section constitutes a violation of GS 75-1.1 to allow a reasonable attorney fee pursuant to state law 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.

Section 1.3.

Amends GS 14-209, making it a Class F felony to knowingly and intentionally make a false statement under oath or affirmation in an instrument presented to a register of deeds for registration. Defines "instrument" by statutory cross-reference to proposed GS 161-32. Applies to offenses committed on or after December 1, 2025.

Section 2.

Modifies new GS 161-32, Identity verification and suspicious instruments, as follows. Replaces the definition of "instrument" to now define the terms by listing three types of qualifying documents which either transfer title of real property, establish a security interest in real property, or purports to establish an interest, option, encumbrance, right, or other claim relating to or interest in real property. Revises the definition of "suspicious instrument" to no longer include an instrument for which the register of deeds has found either: (1) the name or information of the acknowledging officer does not match the official records for that acknowledging officer; or (2) the instrument is materially false, fictitious, or fraudulent and has not been submitted by a trusted submitter or an authorized representative of a trusted submitter. Adds to the qualifying findings of a suspicious instrument that the instrument is submitted by an individual who is not a trusted submitter and the identity verification requirements of the statute have not been met. Expands the term "trusted submitter" to include the authorized agent of a licensed attorney or a financial institution (the extension was previously provided for title insurance companies only). Eliminates redundant language relating to authorized agents of trusted submitters throughout. Refers to identity verification rather than government-issued photo ID in the general requirement for register of deeds under subsection (b). Adds to the required information a register of deeds must record from a photo ID under subdivisions (b)(1) and (b)(2), the identification card number and the expiration date. No longer prohibits redaction of the birthdate from a person's photocopy of their ID submitted to the register of deeds pursuant to subdivision (b)(2). Adds new subdivision (b)(1a), establishing identity verification requirements for when an individual who is not a trusted submitter presents an instrument for registration by delivery, as specified, mirroring those required for the presentation of electronic documents pursuant to subdivision (b)(2). Deletes redundant language of subdivision (c)(2), now included in the expanded definition of "suspicious instrument" that is addressed in subdivision (c)(1). Removes the provision permitting the register of deeds to notify the acknowledging officer of the reason for finding that the instrument is a suspicious instrument. Makes technical and clarifying changes. No longer provides for a cause of action against the register of deeds for their refusal to record an instrument based on an erroneous finding that the instrument is a suspicious instrument. Makes changes to consistently refer to government-issued photo ID rather than identification card in subdivision (b)(2) and (f).

Section 3.

Deletes new GS 161-33, pertaining to a fraud detection alert system.

Section 3.1.

Directs the Legislative Research Commission (LRC) to study the feasibility of creating a fraud detection alert system for no cost, 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 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. Makes these provisions effective on the date the act becomes law.

Section 4.

Changes the caption of new GS 41-10.2 and modifies the statute as follows. Makes the definition of "instrument" mirror the definition of the term provided in new GS 161-32, as amended. Makes clarifying changes to subsection (b) regarding the legal action available to the actual owner of an interest in real property subject to a recorded false, fictitious or fraudulent instrument. Provides for the right to bring a civil action in addition to the emergency relief (was "expedited relief") previously described. Allows the actual owner to proceed pro se. Deems the district court the court of original jurisdiction for the actions. Requires the plaintiff to file a notice of les 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. Adds provisions to address ex parte hearings and authorize temporary orders under the statute. Provides that temporary orders remain in effect for the later of 60 days or until the entry of a permanent order. Authorizes chief district court judges to authorize magistrates to hear ex parte motions. Establishes a time frame for scheduling ex parte hearings and provides for instances when the district court is not in session in that county (replacing the previous provision requiring the hearing be held after a minimum of five days' notice). 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 interested person and all persons claiming an ownership interest 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). Deletes the provisions relating to evidence that establishes fraudulent activity. Makes technical changes to the additional relief the court may order, and adds to the relief available: (1) imposing Rule 11 sanctions against the offending party or their attorney; and (2) ordering execution of any additional instruments necessary or required to clear the title to the property pursuant to Rule 70. Makes the provisions of subsection (c) apply to both ex parte and permanent orders entered under the section. 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. Specifies that the consequences under GS Chapter 75 are in addition to both criminal penalties and civil remedies provided by law. Deletes the language of subsection (e) and replaces it with the following. Makes it a Class G felony to initiate an action under the statute knowing that the subject instrument is not false, fictitious, or fraudulent. Directs that appeals may be made to superior court and contain a verified factual explanation as to why the order is incorrect. Makes clarifying and technical changes. 

Sections 5.1 and 5.2.

Directs the Administrative Office of the Courts (AOC) to develop and make available on its website by October 1, 2025, a complaint form for the fraudulent instrument procedure under GS 41-10.2, as well as a form for filing a lis pendens under GS 41-10.2. Requires the form to include a statement of the criminal penalties for filing a false complaint or statements of perjury. Effective on the date the act becomes law.

Section 6.1.

Replaces the provisions of new GS 47-108.30 with the following. 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 dule 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. 

Section 6.2.

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 7.1.

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 now specified to include both delinquent and current taxes owed to be paid at closing. Effective October 1, 2025.

Section 8

Makes organizational changes to the act's effective date provisions.

Changes the act's long title.