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