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North Carolina House Bill H235

North Carolina 2025-2026 Regular Session

North Carolina House Bill H235 Compare Versions

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11 GENERAL ASSEMBLY OF NORTH CAROLINA
22 SESSION 2025
3-H 1
4-HOUSE BILL 235
3+H D
4+HOUSE BILL DRH30116-MQ-1A
5+
56
67
78 Short Title: Fraudulent Deeds. (Public)
89 Sponsors: Representative Torbett.
9-For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10-Referred to: Judiciary 2, if favorable, Housing and Development, if favorable, Rules, Calendar,
11-and Operations of the House
12-February 27, 2025
13-*H235 -v-1*
10+Referred to:
11+
12+*DRH30116 -MQ-1A*
1413 A BILL TO BE ENTITLED 1
1514 AN ACT TO PENALIZE THE FILING OF FRAUDULENT DEEDS AND CONVEYANCES , 2
1615 TO ESTABLISH A PROCESS TO ENABLE A VICTIM OF A FRAUDULENT DEED 3
1716 FILING TO REMOVE THE FRAUDULENT RECORDING FROM THE RECORD , AND 4
1817 TO REQUIRE TAX CERTIFICATION PRIOR TO RECORDING CERTAIN 5
1918 INSTRUMENTS. 6
2019 The General Assembly of North Carolina enacts: 7
2120 SECTION 1. G.S. 14-122 reads as rewritten: 8
2221 "§ 14-122. Forgery of deeds, wills and certain other instruments.instruments; presentation 9
2322 for filing. 10
2423 (a) If any person, of his own head and imagination, or by false conspiracy or fraud with 11
2524 others, shall wittingly and falsely forge and make, or shall cause or wittingly assent to the forging 12
2625 or making of, or shall show forth in evidence, knowing the same to be forged, any deed, lease or 13
2726 will, or any bond, writing obligatory, bill of exchange, promissory note, endorsement or 14
2827 assignment thereof; or any acquittance or receipt for money or goods; or any receipt or release 15
2928 for any bond, note, bill or any other security for the payment of money; or any order for the 16
3029 payment of money or delivery of goods, with intent, in any of said instances, to defraud any 17
3130 person or corporation, and thereof shall be duly convicted, the person so offending shall be 18
3231 punished as a Class H felon. 19
3332 (b) It shall be unlawful for any person to present for filing or recording in a public record 20
3433 or a private record generally available to the public a deed or transfer of real property of an owner, 21
3534 knowing or having reason to know that the deed or conveyance is false or contains a materially 22
3635 false, fictitious, or fraudulent statement or representation. If the value of property is one hundred 23
3736 thousand dollars ($100,000) or more, a violation of this subsection shall be punished as a Class 24
3837 C felony. If the value of property is less than one hundred thousand dollars ($100,000), a violation 25
3938 of this subsection is a Class G felony." 26
4039 SECTION 2. Article 20 of Chapter 14 of the General Statutes is amended by adding 27
4140 a new section to read: 28
4241 "§ 14-118.6A. Fraudulent deed or conveyance. 29
4342 (a) The actual owner of an interest in real property subject to a recorded false, fictitious, 30
4443 or fraudulent deed or conveyance may file a civil action and proceed pro se, without the 31
4544 assistance of legal counsel. The district court division of the General Court of Justice shall have 32
4645 original jurisdiction over actions instituted under this section, and a party may seek emergency 33
47-relief under this section by filing a civil action in district court alleging the filing or recording of 34 General Assembly Of North Carolina Session 2025
48-Page 2 House Bill 235-First Edition
49-a false, fictitious, or fraudulent deed or conveyance in a public record or a private record generally 1
50-available to the public. If an ex parte hearing is requested, and, upon the submission of a sworn 2
51-statement and evidence supporting the allegation of the recordation of a false, fictitious, or 3
52-fraudulent deed or conveyance, a temporary order, declaring the recording to be fraudulent, shall 4
53-be entered if the court finds that there is no statutory, contractual, or other legal basis for the 5
54-alleged false, fictitious, or fraudulent recording. A temporary order entered under this subsection 6
55-shall remain in effect for the later of 60 days or until the entry of a permanent order. The chief 7
56-district court judge may authorize a magistrate or magistrates to hear any motions for emergency 8
57-relief ex parte under this section. If a party acting pro se requests ex parte relief under this section, 9
58-the clerk of superior court shall schedule an ex parte hearing with the district court division of 10
59-the General Court of Justice within 72 hours of the filing for said relief, or by the end of the next 11
60-day on which the district court is in session in the county in which the action was filed, whichever 12
61-shall first occur. If the district court is not in session in said county, the party may contact the 13
62-clerk of superior court in any other county within the same judicial district who shall schedule 14
63-an ex parte hearing with the district court division of the General Court of Justice by the end of 15
64-the next day on which said court division is in session in that county. Upon the issuance of an ex 16
65-parte order under this subsection, a hearing shall be held within 10 calendar days from the date 17
66-of issuance of the order or within seven calendar days from the date of service of process on the 18
67-other party, whichever occurs later. A continuance shall be limited to one extension of no more 19
68-than 10 calendar days unless all parties consent or good cause is shown. The hearing shall have 20
69-priority on the court calendar. If, after an opportunity to be heard to all interested persons and all 21
70-persons claiming an ownership interest in the property, the court finds that there is no statutory, 22
71-contractual, or other legal basis for the recording, the court shall enter a permanent order finding 23
72-that the recorded deed or conveyance is false and is void as a matter of law. The court may also 24
73-include in the order any of the following types of relief: 25
74-(1) Grant to a party possession of the real property and order the ejectment of any 26
75-party on the premises. 27
76-(2) Award to a party attorneys' fees and other costs for the action. 28
77-(3) Stay any proceedings involving the subject real property in which the property 29
78-owner is not a party to. 30
79-(b) Upon being presented with an ex parte or a permanent order duly issued by a court of 31
80-competent jurisdiction of this State declaring that a deed or conveyance already recorded is false 32
81-and void as a matter of law, the register of deeds that received the false recording shall record 33
82-and cross-index the order and shall, in addition to recording the court's order, also conspicuously 34
83-mark on the first page of the original record previously recorded the following statement: "THE 35
84-CLAIM ASSERTED IN THIS DOCUMENT IS FALSE AND IS NOT PROVIDED FOR BY 36
85-THE GENERAL LAWS O F THIS STATE." An order presented for recording pursuant to this 37
86-section shall be recorded and cross-indexed by the register of deeds, and no fee authorized under 38
87-G.S. 161-10, or otherwise, shall be charged. 39
88-(c) In addition to any criminal penalties provided by law, the presentation of an 40
89-instrument for recording with a register of deeds that purports to be a deed or conveyance that is 41
90-determined to be materially false, fictitious, or fraudulent shall constitute a violation of 42
91-G.S. 75-1.1. 43
92-(d) A person who initiates an action under this section knowing that the subject deed or 44
93-conveyance is not false, fictitious, or fraudulent shall be punished as a Class G felon." 45
94-SECTION 3. G.S. 161-31 reads as rewritten: 46
95-"§ 161-31. Tax certification. 47
96-(a) Tax Certification. – The board of commissioners of a county may, shall, by resolution, 48
97-require the register of deeds not to accept any deed transferring real property for registration 49
98-unless the county tax collector has certified that no delinquent ad valorem county taxes, ad 50
99-valorem municipal taxes, or other taxes with which the collector is charged are a lien on the 51 General Assembly Of North Carolina Session 2025
100-House Bill 235-First Edition Page 3
101-property described in the deed. The county commissioners may describe the form the certification 1
102-must take in its resolution. 2
103-(a1) Exception to Tax Certification. – If a board of county commissioners adopts a 3
104-resolution pursuant to subsection (a) of this section, notwithstanding the resolution, the The 4
105-register of deeds shall accept without certification a deed submitted for registration under the 5
106-supervision of a closing attorney and containing this statement on the deed: "This instrument 6
107-prepared by: ________, a licensed North Carolina attorney. Delinquent taxes, if any, to be paid 7
108-by the closing attorney to the county tax collector upon disbursement of closing proceeds." 8
109-(b) Applicability. – This section applies only to Alamance, Alexander, Anson, Beaufort, 9
110-Bertie, Bladen, Brunswick, Buncombe, Burke, Cabarrus, Caldwell, Camden, Carteret, Caswell, 10
111-Catawba, Cherokee, Chowan, Clay, Cleveland, Columbus, Currituck, Dare, Davidson, Davie, 11
112-Duplin, Durham, Edgecombe, Forsyth, Franklin, Gaston, Gates, Graham, Granville, Greene, 12
113-Halifax, Harnett, Haywood, Henderson, Hertford, Hoke, Hyde, Iredell, Jackson, Johnston, Jones, 13
114-Lee, Lenoir, Lincoln, Macon, Madison, Martin, McDowell, Montgomery, Nash, Northampton, 14
115-Onslow, Pasquotank, Pender, Perquimans, Person, Pitt, Polk, Randolph, Robeson, Rockingham, 15
116-Rowan, Rutherford, Sampson, Scotland, Stanly, Stokes, Surry, Swain, Transylvania, Tyrrell, 16
117-Vance, Warren, Washington, Wayne, Wilson, Yadkin, and Yancey Counties." 17
118-SECTION 4. This act becomes effective December 1, 2025, and applies to 18
119-documents and instruments submitted for recording on or after that date. 19
46+relief under this section by filing a civil action in district court alleging the filing or recording of 34
47+a false, fictitious, or fraudulent deed or conveyance in a public record or a private record generally 35
48+available to the public. If an ex parte hearing is requested, and, upon the submission of a sworn 36
49+H.B. 235
50+Feb 26, 2025
51+HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
52+Page 2 DRH30116-MQ-1A
53+statement and evidence supporting the allegation of the recordation of a false, fictitious, or 1
54+fraudulent deed or conveyance, a temporary order, declaring the recording to be fraudulent, shall 2
55+be entered if the court finds that there is no statutory, contractual, or other legal basis for the 3
56+alleged false, fictitious, or fraudulent recording. A temporary order entered under this subsection 4
57+shall remain in effect for the later of 60 days or until the entry of a permanent order. The chief 5
58+district court judge may authorize a magistrate or magistrates to hear any motions for emergency 6
59+relief ex parte under this section. If a party acting pro se requests ex parte relief under this section, 7
60+the clerk of superior court shall schedule an ex parte hearing with the district court division of 8
61+the General Court of Justice within 72 hours of the filing for said relief, or by the end of the next 9
62+day on which the district court is in session in the county in which the action was filed, whichever 10
63+shall first occur. If the district court is not in session in said county, the party may contact the 11
64+clerk of superior court in any other county within the same judicial district who shall schedule 12
65+an ex parte hearing with the district court division of the General Court of Justice by the end of 13
66+the next day on which said court division is in session in that county. Upon the issuance of an ex 14
67+parte order under this subsection, a hearing shall be held within 10 calendar days from the date 15
68+of issuance of the order or within seven calendar days from the date of service of process on the 16
69+other party, whichever occurs later. A continuance shall be limited to one extension of no more 17
70+than 10 calendar days unless all parties consent or good cause is shown. The hearing shall have 18
71+priority on the court calendar. If, after an opportunity to be heard to all interested persons and all 19
72+persons claiming an ownership interest in the property, the court finds that there is no statutory, 20
73+contractual, or other legal basis for the recording, the court shall enter a permanent order finding 21
74+that the recorded deed or conveyance is false and is void as a matter of law. The court may also 22
75+include in the order any of the following types of relief: 23
76+(1) Grant to a party possession of the real property and order the ejectment of any 24
77+party on the premises. 25
78+(2) Award to a party attorneys' fees and other costs for the action. 26
79+(3) Stay any proceedings involving the subject real property in which the property 27
80+owner is not a party to. 28
81+(b) Upon being presented with an ex parte or a permanent order duly issued by a court of 29
82+competent jurisdiction of this State declaring that a deed or conveyance already recorded is false 30
83+and void as a matter of law, the register of deeds that received the false recording shall record 31
84+and cross-index the order and shall, in addition to recording the court's order, also conspicuously 32
85+mark on the first page of the original record previously recorded the following statement: "THE 33
86+CLAIM ASSERTED IN THIS DOCUMENT IS FALSE AND IS NOT PROVIDED FOR BY 34
87+THE GENERAL LAWS OF THIS STATE." An order presented for recording pursuant to this 35
88+section shall be recorded and cross-indexed by the register of deeds, and no fee authorized under 36
89+G.S. 161-10, or otherwise, shall be charged. 37
90+(c) In addition to any criminal penalties provided by law, the presentation of an 38
91+instrument for recording with a register of deeds that purports to be a deed or conveyance that is 39
92+determined to be materially false, fictitious, or fraudulent shall constitute a violation of 40
93+G.S. 75-1.1. 41
94+(d) A person who initiates an action under this section knowing that the subject deed or 42
95+conveyance is not false, fictitious, or fraudulent shall be punished as a Class G felon." 43
96+SECTION 3. G.S. 161-31 reads as rewritten: 44
97+"§ 161-31. Tax certification. 45
98+(a) Tax Certification. – The board of commissioners of a county may, shall, by resolution, 46
99+require the register of deeds not to accept any deed transferring real property for registration 47
100+unless the county tax collector has certified that no delinquent ad valorem county taxes, ad 48
101+valorem municipal taxes, or other taxes with which the collector is charged are a lien on the 49
102+property described in the deed. The county commissioners may describe the form the certification 50
103+must take in its resolution. 51 General Assembly Of North Carolina Session 2025
104+DRH30116-MQ-1A Page 3
105+(a1) Exception to Tax Certification. – If a board of county commissioners adopts a 1
106+resolution pursuant to subsection (a) of this section, notwithstanding the resolution, the The 2
107+register of deeds shall accept without certification a deed submitted for registration under the 3
108+supervision of a closing attorney and containing this statement on the deed: "This instrument 4
109+prepared by: ________, a licensed North Carolina attorney. Delinquent taxes, if any, to be paid 5
110+by the closing attorney to the county tax collector upon disbursement of closing proceeds." 6
111+(b) Applicability. – This section applies only to Alamance, Alexander, Anson, Beaufort, 7
112+Bertie, Bladen, Brunswick, Buncombe, Burke, Cabarrus, Caldwell, Camden, Carteret, Caswell, 8
113+Catawba, Cherokee, Chowan, Clay, Cleveland, Columbus, Currituck, Dare, Davidson, Davie, 9
114+Duplin, Durham, Edgecombe, Forsyth, Franklin, Gaston, Gates, Graham, Granville, Greene, 10
115+Halifax, Harnett, Haywood, Henderson, Hertford, Hoke, Hyde, Iredell, Jackson, Johnston, Jones, 11
116+Lee, Lenoir, Lincoln, Macon, Madison, Martin, McDowell, Montgomery, Nash, Northampton, 12
117+Onslow, Pasquotank, Pender, Perquimans, Person, Pitt, Polk, Randolph, Robeson, Rockingham, 13
118+Rowan, Rutherford, Sampson, Scotland, Stanly, Stokes, Surry, Swain, Transylvania, Tyrrell, 14
119+Vance, Warren, Washington, Wayne, Wilson, Yadkin, and Yancey Counties." 15
120+SECTION 4. This act becomes effective December 1, 2025, and applies to 16
121+documents and instruments submitted for recording on or after that date. 17