The North Carolina Legislature has adopted legislation that amends, among other things, the state’s notary and conveyance statutes.
North Carolina SB 196 amends G.S. 93A-12 to read, “An escrow agent may deposit with the clerk of court in accordance with this section monies, other than a residential security deposit, the ownership of which are in dispute and that were received while the escrow agent was acting in a fiduciary capacity.”
When depositing the disputed funds, the escrow agent must certify to the clerk of court that the persons claiming ownership of the disputed funds have been notified that the disputed funds are to be deposited with the clerk of court and that the persons may initiate a special proceeding with the clerk of court to recover the disputed funds.
Escrow agents must not deposit disputed funds with the clerk of courts until 90 days after notifying the person claiming ownership of the disputed funds.
The new law defines escrow agent as:
- Areal estate broker licensed under this chapter
- An attorney licensed to practice law in this state
- A title insurance company or title insurance agent licensed to conduct business in this state.
It amends G.S. 41-56 to state that unless a contrary intention is expressed in the conveyance, a conveyance of real property, or any interest in real property, to two spouses vests title in them as tenants by the entirety.
A conveyance by a grantor of real property, or any interest in real property, to the grantor and his or her spouse vests the property in them as tenants by the entirety, unless a contrary intention is expressed in the conveyance.
“When spouses become co-owners of a mobile home, in the absence of a contrary intention appearing in the instrument of title, the spouses become tenants by the entirety with all the incidents of an estate by the entirety in real property, including the right of survivorship in the case of death of either spouse,” the bill continues. “For the purposes of this subsection, it is immaterial whether the property at any particular time is classified for any purpose as either real or personal. Nothing in this subsection is deemed to limit or prohibit any other type of ownership otherwise authorized by law. For the purposes of this subsection, the term ‘mobile home’ means a portable manufactured housing unit designed for transportation on its own chassis and placement on temporary or semipermanent foundation having a measurement of over 32 feet in length and over eight feet in width. As used this subsection, the term ‘mobile home’ also means a double-wide mobile home consisting of two or more portable manufactured housing units that are designed for transportation on their own chassis and are connected on site for placement on a temporary or semipermanent foundation having a measurement of over 32 feet in length and over eight feet in width.”
It amends G.S. 47-18 to state, “No conveyance of land, contract to convey, option to purchase or convey, lease of land for more than three years, right of first refusal, or right of first offer is valid to pass any property interest as against lien creditors or purchasers for a valuable consideration from the donor, bargainor, or lessor but from the time of its registration in the county where the land lies, or if the land is located in more than one county, then in each county where any portion of the land lies to be effective as to the land in that county. Unless otherwise stated either on the registered instrument or on a separate registered instrument duly executed by the party whose priority interest is adversely affected, instruments registered in the office of the register of deeds have priority based on the order of registration as determined by the time of registration, and if instruments are registered simultaneously, then the instruments are presumed to have priority determined as follows:
- The earliest document number set forth on the registered instrument.
- The sequential book and page number set forth on the registered instrument if no document number is set forth on the registered instrument.
The law also states that, among other things, all notary acknowledgments performed before July 1, 2013, bearing a notarial seal are validated.
It also notes that a notarial certificate contained in a form issued by a state agency prior to April 1, 2021, is deemed to be a valid certificate so long as the certificate complied with the law at the time the form was used.
It amends G.S. 10B-71 to read, “Any acknowledgment taken and any instrument notarized by a person who after recommissioning failed to again take the oath as a notary public is hereby validated. The acknowledgment and instrument have the same legal effect as if the person qualified as a notary public at the time the person performed the act. This section applies to notarial acts performed on or after May 15, 2004, and before April 1, 2021.”
It amends G.S. 47-48 to state, “When it appears that the clerk of the superior court, register of deeds, or other officer having the power to probate or certify deeds, in passing upon deeds or other instruments, and related certificates, consisting of more than one certificate of the same or a different date by other officer or officers taking acknowledgment or probating the certificates, has in his or her certificate or order mentioned only one or more of the preceding or foregoing certificates or orders, but not all of them, but has admitted the same deed or other instrument to probate or recordation, it is conclusively presumed that all the certificates of the deed or instrument necessary for probate or recordation have been passed upon, and the certificate of the clerk, register of deeds, or other probating or certifying officer is deemed sufficient and the probate, certification, and recordation of the deed or instrument is valid for all intents and purposes. This section applies to all instruments recorded in any county of this state prior to April 1, 2021.”
It further amends G.S. 47-53 to state, “If the acknowledgment, private examination, or other proof of the execution of any deed, mortgage, or other instrument authorized or required to be registered has been taken by or before any commissioner of affidavits and deeds of this state, clerk or deputy clerk of a court of record, or notary public of this or any other state, territory, or district, and the deed, mortgage, or other instrument has been recorded in any county in this state, but the commissioner, clerk, deputy clerk, or notary public omitted to attach his or her official or notarial seal to it, or if omitted, to insert his or her name in the body of the certificate, or if omitted, to sign his or her name to the certificate, if the name of the officer appears in the body of the certificate or is signed to it, or it does not appear of record that the seal was attached to the original deed, mortgage, or other instrument, or the commissioner, clerk, deputy clerk, or notary public has certified the certificate as under his or her ‘official seal,’ or ‘notarial seal,’ or words of similar import, and no such seal appears of record or where the officer uses ‘notarial’ in his or her certificate and signatures shows that C.S.C., or clerk of superior court, or similar exchange of capacity, and the word seal follows the signature, then all such acknowledgments, private examinations or other proofs of such deeds, mortgages, or other instruments, and their registration are in all respects valid and binding. This section applies to acknowledgments, private examinations, or proofs taken prior to April 1, 2021. This section does not apply to pending litigation.”