Bill Summaries: S423 (2025-2026 Session)

Tracking:
  • Summary date: May 1 2025 - View summary

    Senate amendment to the 2nd edition makes the following changes.

    Amends new GS 41-10.2 to allow a person owning an interest in real property to seek expedited relief by filing a petition in district court alleging the filing or recording of a false, fictitious, or fraudulent instrument, no longer requiring it to have been in a public record or a private record generally available to the public.


  • Summary date: Apr 29 2025 - View summary

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

    Section 1.

    Adds term suspicious instrument (an instrument submitted for registration for which the register of deeds has found any of four described circumstances, including that the name or information of an acknowledging officer who has purported to acknowledge the instrument does not match the official records for that acknowledging officer or that the instrument is materially false, fictitious, or fraudulent) and trusted filer (any person listed in the trusted filer database maintained by the Administrative Office of the Courts [AOC] under the act) to new GS 161-32 (identify verification). Adds trusted filers and their authorized agents to those persons who are not required to present government-issued identification to the register of deeds when filing an instrument. Requires the register of deeds to require an entity that is not a trusted filer, trusted submitter or authorized agent thereof (“Other Individual”) to provide the described corporate documents when submitting an instrument for filing. Specifies that records kept by the register of deeds under GS 161-32 are confidential, nonpublic records, not to be disclosed other than pursuant to a superior court order or in response to a written request from a State or federal law enforcement agency for investigative or evidentiary purposes (was, identification records would not be available on the registrar’s website, but available for public inspection and copy with limited redacting). Allows a register of deeds to refuse to register an instrument presented by an Other Individual if the registrar deems the instrument to be a suspicious instrument. Expands the notices that must be published on the register of deeds’ website to include a statement that submitting false documentation, as described, is perjury, and punishable as a felony. Tasks the AOC with developing a database of trusted filers that is available to the registers of deeds to carry out their duties under GS 161-32. Makes conforming, technical, clarifying, and organizational changes.  Changes the effective date from October 1, 2025, to July 1, 2026.

    Section 2.

    Makes the following changes to new GS 41-10.2 (quiet title actions for fraudulent instruments).  Modifies the definition of instrument so that it now means: (1) a deed or other instrument transferring title to real property; (2) a deed of trust, mortgage, judgment, lien, encumbrance, financing statement, affidavit, notice, memorandum, or any other instrument that establishes a security interest in real property; and (3) a contract to purchase, option to purchase, right of refusal, or any other instrument that purports to establish an interest, encumbrance, claim, or right relating to real property. Excludes wills or any other writings under the terms of which a person's interest in real property is transferred upon the death of that person. Expands the reasons authorizing an owner of real property to seek expedited relief under the state to include filings of a false, fictitious, or fraudulent instrument as described (was, just recording of such an instrument). Removes the procedures governing service and the hearing process, and instead provides for an expedited hearing, standards for continuances, responsive pleadings, and extensions of time for filing, as described. Replaces reference to “merited legal justification” as a grounds for the instrument with “legal instrument.” Makes organizational, technical, and clarifying changes. Changes the effective date from October 1, 2025, to July 1, 2026.

    Section 3.

    Expands the grounds for perjury under GS 14-209 to include knowingly and intentionally making a false statement under oath or affirmation in an instrument as defined in GS 161-32 presented to a register of deeds.

    Moves provisions requiring AOC to develop a form, as described, for the expedited relief filing described herein, to Section 4 of the act.


  • Summary date: Mar 25 2025 - View summary

    Enacts GS 161-32 establishing that when an instrument is presented to the register of deeds for registration by an individual who is not a trusted submitter or their authorized agent, the register of deeds must require the presenter to produce a government-issued photographic ID card. Defines trusted submitter to include a title insurance company, a licensed attorney, or a financial institution. Also defines instrument. Provides for inspection of the ID when instruments are presented in person and recording requirements of the register of deeds when instruments are presented in person. Provides for submission of a redacted copy of a photo ID for any electronic instruments presented and sets similar recordkeeping requirements. Requires that in either case, the register of deeds keeps a record of the presenter's name and address. Deems the records subject to public records laws but prohibits making the records available for viewing on the register of deeds' official public website. Mandates refusal to register an instrument when (1) the presenter is not a trusted submitter or their authorized agent and fails to provide a government-issued photo ID as required by the statute, or (2) the presenter is not a trusted submitter or their authorized agent and the name on the government-issued photo ID does not match the name of the grantor or conveying party in the instrument presented. Directs register of deeds to provide public notice of the identity requirements on their official public website. Grants civil immunity to registers of deeds and the county with respect to the ID requirements or refusal to register instruments in accordance with the statute. Specifies that the statute does not require or allow access to confidential records or information. Applies to instruments and documents presented for registration on or after October 1, 2025.

    Enacts GS 41-10.2, concerning quiet title of fraudulent instruments, as follows. Permits the actual owner of an interest in real property subject to a recorded false, fictitious, or fraudulent instrument to seek expedited relief as described by filing an action in district court alleging the filing or recording of a false, fictitious, or fraudulent instrument in a public record or a private record generally available to the public. Authorizes six additional remedies, including ejectment. Requires a court order declaring an instrument already recorded is false and void as a matter of law to be recorded as described. Designates the presentation of an instrument for recording with a register of deeds or a clerk of superior court that is determined to be materially false, fictitious, or fraudulent an unfair trade practice. Requires the Administrative Office of the Courts to develop a form, as described, for the expedited relief filing described herein. Defines instrument. Applies to causes of action arising on or after October 1, 2025.