Bulletin: NC2018001

Date:
August 27, 2018
To:
All North Carolina Issuing Offices
RE:
LEGISLATIVE UPDATE - North Carolina 2018 State Legislature Report

Dear Associates:

The following is a summary of legislation relevant to real estate matters passed during the 2018 legislative session of the North Carolina General Assembly.

Session Law 2018-80

Deed of Trust Changes: 

NCGS § 39-13 was amended to clarify that a 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, shall be 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 unless said spouse is named in title.

NCGS § 161-10 was amended to add that when recording a “subsequent instrument” (See § 161-14.1(a)(3)) related to a previously recorded deed or deed of trust, except for satisfaction or cancellations of deeds of trust, the full recording fee shall be charged. Effective October 1, 2018, and applies to instruments presented for registration on or after that date.

Probate and Registration Changes:

NCGS § 47-17 was amended to clarify that counties may require designated draftsman information to be shown on the first page of deeds and deeds of trust. The amendment further clarified that the register of deeds shall accept the written representation of the individual presenting the deed or deed of trust for registration, or any individual reasonably related to the transaction, including, but not limited to, any employee of a title insurance company or agency purporting to be involved with the transaction, “that the individual or law firm listed on the first page is a validly licensed attorney or validly existing law firm in this State or another jurisdiction within the United States.”

NCGS § 47-18.3 was amended to indicate that, when it appears that an instrument was executed in the ordinary course of business on behalf of a limited liability company “by its chairman, president, chief executive officer, a vice-president or an vice-president, assistant vice-president, treasurer, or chief financial officer, chief operations officer, general counsel, deputy or assistant general counsel, manager, member, director, or other fiduciary duly authorized by the applicable business entity's statutes or governing documents”, such an instrument shall be as valid with respect to the rights of innocent third parties as if executed pursuant to authorization from the board of directors, unless the instrument reveals on its face a potential breach of fiduciary obligation. 

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THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None