Bulletin: NC2013003

Dear Associates:

The following is a summary of pertinent North Carolina legislative updates:

SB 228 - Regarding access in Condominium and Planned Community - provides that a unit owner must afford access through his unit or lot or limited common elements assigned to his unit or lot reasonably necessary for maintenance, repair or replacement activity. Effective October 1, 2013.

SB 279 - An Act to Update and Clarify Laws Governing Estates, Trusts, Guardianship, Powers of Attorney and other Fiduciaries - defines and clarifies real and personal property for purposes of estates without administration and changes the spousal elective share. Effective October 1, 2013.

HB 32 - Increases the Spousal Years Allowance from $20,000 to $30,000. Effective January 1, 2014.

HB 88 - Technical Corrections to Law Pertaining to Lien Agent - Clarifies the use of an internet web site for designation of lien agents and other notices; defines custom contractor; clarifies information required for designation of lien agent; expands residence to include additions or accessory building or structure; clarifies requirement of notice to design professionals, equipment rental agents and suppliers of materials. Effective June, 2013.

HB 180 - Technical Corrections to Laws Governing Mechanics Liens - this provided technical corrections for the Lien Agent provisions and was effective April 1, 2013, when the new statute also was effective.

HB 331 - Home Owner Association Uniform Lien Procedures - this law standardizes the procedures for collection and enforcement of claims of lien for unpaid HOA dues. Enforcement will now be by power of sale and authorizes appointment of a trustee to conduct the foreclosure action and sale. It also validates previous non-judicial foreclosures. Effective October 1, 2013.

HB 332 - An Act Making Corrections … To the Notary Public Act - this is an extensive act correcting, revising and validating certain provisions under the Notary Public Act (Chapter 10B) Probate and Registration (Chapter 47) and Satisfaction of Deeds of Trust (Chapter 45).

Notary Public:

1. Deletes requirement of recommendation of a public official for notary public application.

2. Clarifies that a notary public is not disqualified to acknowledge instruments of the notary’s employer or an entity in which notary is a stockholder.

3. Adds a provision to NCGS 10B-60 for the Secretary of State to report any violation by a NC attorney to the NC State Bar.

Extensive corrective and validation provisions including:

1. Validates lack of the year in the notary acknowledgement.

2. Validates lack of seal.

3. Validates erroneous notary commission.

4. Technical defects will not affect sufficiency, validity or enforceability of instrument for seal placement; minor typographical errors or failure to acknowledge the principal exactly as written.

Probate and Registration:

NCGS § 47-2.2 is revised to broaden acceptance of out of state notaries including lack of seal or stamp if conforms to state law where acknowledged. Calls for statement of explanation of state requirements where acknowledged.

Powers of Attorney - rewrites NCGS § 47-28 to clarify the requirement (deleted “may”) of recording of a power of attorney for use in transfers of real property. It requires the recording information where the power of attorney is recorded in another county. Acknowledges the validity of the instrument if recorded prior to the power of attorney used.

NCGS §  47-36.1 is rewritten to provide that if a notary public correction affidavit is made to correct the notary certificate already recorded, the notary may complete the acknowledgement which shall be deemed attached to the original and the priority shall remain the same date and time as originally recorded.

Further validates instruments missing corporate seals, notary seals, and mistaken officer’s names.

Satisfaction Agent:

NCGS § 45-36.14 is revised to expand the Satisfaction Agent statute; changes to the Affidavit of Satisfaction form.

HB 332 becomes effective September 25, 2013, with the exception of the requirement for a public official recommendation for notary which was effective July 1, 2013.

HB 343 - This is a technical Act regarding Court Fees. It removes the sunset provision for the fee schedule for the Register of Deeds pursuant to NCGS 161-10. Effective July 1, 2013.

HB 410 - An Act to Allow the DMV to Cancel Certificate of Title to a Manufactured Home – this bill rewrites NCGS 20-109.2 to allow a titled owner of a manufactured home to cancel the motor vehicle title by affidavit where certificate of title is unavailable. The manufactured home must qualify as real property and be listed as real property for ad valorem taxes. The affidavit will require that the affiant is the record owner of the real property (or lessee under 20+ year lease) where manufactured home is affixed. Effective July 1, 2013.

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