North Carolina 2025-2026 Regular Session

North Carolina House Bill H524 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	H 1
4		-	HOUSE BILL 524
	3	+	H D
	4	+	HOUSE BILL DRH30004-NO-7
	5	+
5	6
6	7
7	8		Short Title: Fraud Detection Alert System. (Public)
8		-	Sponsors: Representatives Kidwell and Tyson (Primary Sponsors).
9		-	For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10		-	Referred to: State and Local Government, if favorable, Judiciary 2, if favorable, Rules,
11		-	Calendar, and Operations of the House
12		-	March 27, 2025
13		-	H524 -v-1
	9	+	Sponsors: Representative Kidwell.
	10	+	Referred to:
	11	+
	12	+	DRH30004 -NO-7
14	13		A BILL TO BE ENTITLED 1
15	14		AN ACT TO REQUIRE THE REGISTER OF DEEDS TO PROVIDE ACCESS TO A FRAUD 2
16	15		DETECTION ALERT SYSTEM AND TO MODIFY PROVISIONS REGARDING 3
17	16		PROPERTY CRIMES. 4
18	17		The General Assembly of North Carolina enacts: 5
19	18		SECTION 1. Article 2 of Chapter 161 of the General Statutes is amended by adding 6
20	19		a new section to read: 7
21	20		"§ 161-32. Fraud detection alert system. 8
22	21		(a) The following definitions apply in this section: 9
23	22		(1) Fraud detection alert system. – A system which sends automated recording 10
24	23		notifications. 11
25	24		(2) Land record. – A deed, deed of trust, mortgage, or other document purporting 12
26	25		to convey or encumber an interest in real property. 13
27	26		(3) Monitored identity. – A personal, trust, or business name submitted by a 14
28	27		registrant for monitoring under a fraud detection alert system. 15
29	28		(4) Recording notification. – A notification sent by electronic mail indicating to 16
30	29		a registrant that a land record associated with the registrant's monitored 17
31	30		identity has been recorded in the office of the register of deeds. 18
32	31		(5) Registrant. – A person who enrolls in a fraud detection alert system. 19
33	32		(b) The register of deeds shall ensure that registration for a fraud detection alert system 20
34	33		is possible through an electronic registration portal, which portal shall include at least all of the 21
35	34		following features: 22
36	35		(1) Be accessible through a direct link on the register of deeds' official public 23
37	36		website. 24
38	37		(2) Allow a registrant to subscribe to receive recording notifications for at least 25
39	38		five monitored identities per valid electronic mail address provided. 26
40	39		(3) Include a method by which a registrant may unsubscribe from the system. 27
41	40		(4) List a phone number at which the register of deeds office may be contacted 28
42	41		during normal business hours with questions related to the system. 29
43	42		(5) Send an automated electronic mail message to a registrant confirming the 30
44	43		registrant's successful registration for or action to unsubscribe from the 31
45	44		system, which message must identify each monitored identity for which a 32
46		-	subscription was received or canceled. 33 General Assembly Of North Carolina Session 2025
47		-	Page 2 House Bill 524-First Edition
48		-	(c) When a land record is recorded for a monitored identity, a recording notification must 1
49		-	be sent within 24 hours after the recording has been completed to each registrant who is 2
50		-	subscribed to receive recording notifications for that monitored identity. Such notification must 3
51		-	contain at least the following: 4
52		-	(1) Information identifying the monitored identity for which the land record was 5
53		-	filed. 6
54		-	(2) The land record's recording date. 7
55		-	(3) The official record book and page number or instrument number assigned to 8
56		-	the land record by the register of deeds. 9
57		-	(4) Instructions for electronically searching for and viewing the land record using 10
58		-	the assigned official record book and page number or instrument number. 11
59		-	(5) A phone number at which the register of deeds office may be contacted during 12
60		-	normal business hours with questions related to the recording notification. 13
61		-	(d) There is no right or cause of action against, and no civil liability on the part of, the 14
62		-	register of deeds or the county with respect to the creation, maintenance, or operation of a fraud 15
63		-	detection alert system as required by this section. 16
64		-	(e) The register of deeds may charge a reasonable fee to a registrant for enrolling in the 17
65		-	fraud detection alert system in an amount that does not exceed the actual cost of maintaining and 18
66		-	allowing access to the system." 19
67		-	SECTION 2. G.S. 14-117.8 reads as rewritten: 20
68		-	"§ 14-117.8. Fraudulently renting, leasing, or advertising for sale of residential real 21
69		-	property. 22
70		-	(a) Offense Involving Fraudulent Rental or Lease. – It is unlawful to rent or lease 23
71		-	residential real property to another person knowing that the renter or lessor has no lawful 24
72		-	ownership in the property or leasehold interest in the property. 25
73		-	(b) Offense Involving Fraudulent Advertising. – It is unlawful to list or advertise 26
74		-	residential real property for sale knowing that the purported seller has no legal title or authority 27
75		-	to sell the property. 28
76		-	(c) Punishment. – Unless the conduct is covered under some other provision of law 29
77		-	providing greater punishment, a person who violates this section shall be punished as follows: 30
78		-	(1) A person who violates subsection (a) of this section is guilty of a Class H 31
	45	+	subscription was received or canceled. 33
	46	+	(c) When a land record is recorded for a monitored identity, a recording notification must 34
	47	+	be sent within 24 hours after the recording has been completed to each registrant who is 35
	48	+	H.B. 524
	49	+	Mar 26, 2025
	50	+	HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	51	+	Page 2 DRH30004-NO-7
	52	+	subscribed to receive recording notifications for that monitored identity. Such notification must 1
	53	+	contain at least the following: 2
	54	+	(1) Information identifying the monitored identity for which the land record was 3
	55	+	filed. 4
	56	+	(2) The land record's recording date. 5
	57	+	(3) The official record book and page number or instrument number assigned to 6
	58	+	the land record by the register of deeds. 7
	59	+	(4) Instructions for electronically searching for and viewing the land record using 8
	60	+	the assigned official record book and page number or instrument number. 9
	61	+	(5) A phone number at which the register of deeds office may be contacted during 10
	62	+	normal business hours with questions related to the recording notification. 11
	63	+	(d) There is no right or cause of action against, and no civil liability on the part of, the 12
	64	+	register of deeds or the county with respect to the creation, maintenance, or operation of a fraud 13
	65	+	detection alert system as required by this section. 14
	66	+	(e) The register of deeds may charge a reasonable fee to a registrant for enrolling in the 15
	67	+	fraud detection alert system in an amount that does not exceed the actual cost of maintaining and 16
	68	+	allowing access to the system." 17
	69	+	SECTION 2. G.S. 14-117.8 reads as rewritten: 18
	70	+	"§ 14-117.8. Fraudulently renting, leasing, or advertising for sale of residential real 19
	71	+	property. 20
	72	+	(a) Offense Involving Fraudulent Rental or Lease. – It is unlawful to rent or lease 21
	73	+	residential real property to another person knowing that the renter or lessor has no lawful 22
	74	+	ownership in the property or leasehold interest in the property. 23
	75	+	(b) Offense Involving Fraudulent Advertising. – It is unlawful to list or advertise 24
	76	+	residential real property for sale knowing that the purported seller has no legal title or authority 25
	77	+	to sell the property. 26
	78	+	(c) Punishment. – Unless the conduct is covered under some other provision of law 27
	79	+	providing greater punishment, a person who violates this section shall be punished as follows: 28
	80	+	(1) A person who violates subsection (a) of this section is guilty of a Class H 29
	81	+	felony. 30
	82	+	(2) A person who violates subsection (b) of this section is guilty of a Class I 31
79	83		felony. 32
80		-	(2) A person who violates subsection (b) of this section is guilty of a Class I 33
81		-	felony. 34
82		-	(d) In addition to any criminal penalties provided in this section, knowingly renting or 35
83		-	leasing renting, leasing, listing, or advertising residential real property to another person knowing 36
84		-	that the renter or lessor renter, lessor, or the person soliciting the listing or advertisement has no 37
85		-	lawful ownership or leasehold interest in the property shall constitute a violation of G.S. 75-1.1. 38
86		-	In a civil suit initiated by a person who alleges that a person's violation of this section constitutes 39
87		-	a violation of G.S. 75-1.1, the presiding judge may allow a reasonable attorney fee in accordance 40
88		-	with G.S. 75-16.1 to the attorney representing the person bringing the suit without finding that 41
89		-	there was an unwarranted refusal by the party charged with the violation to fully resolve the 42
90		-	matter which constitutes the basis of the suit." 43
91		-	SECTION 3. Section 1 of this act becomes effective October 1, 2025, and applies to 44
92		-	land records recorded on or after that date. Section 2 of this act becomes effective October 1, 45
93		-	2025, and applies to causes of action arising on or after that date. The remainder of this act is 46
94		-	effective when it becomes law. 47
	84	+	(d) In addition to any criminal penalties provided in this section, knowingly renting or 33
	85	+	leasing renting, leasing, listing, or advertising residential real property to another person knowing 34
	86	+	that the renter or lessor renter, lessor, or the person soliciting the listing or advertisement has no 35
	87	+	lawful ownership or leasehold interest in the property shall constitute a violation of G.S. 75-1.1. 36
	88	+	In a civil suit initiated by a person who alleges that a person's violation of this section constitutes 37
	89	+	a violation of G.S. 75-1.1, the presiding judge may allow a reasonable attorney fee in accordance 38
	90	+	with G.S. 75-16.1 to the attorney representing the person bringing the suit without finding that 39
	91	+	there was an unwarranted refusal by the party charged with the violation to fully resolve the 40
	92	+	matter which constitutes the basis of the suit." 41
	93	+	SECTION 3. Section 1 of this act becomes effective October 1, 2025, and applies to 42
	94	+	land records recorded on or after that date. Section 2 of this act becomes effective October 1, 43
	95	+	2025, and applies to causes of action arising on or after that date. The remainder of this act is 44
	96	+	effective when it becomes law. 45