North Carolina 2025-2026 Regular Session

North Carolina House Bill H535 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 535
	3	+	H D
	4	+	HOUSE BILL DRH10246-NO-30A
	5	+
5	6
6	7
7	8		Short Title: Title Fraud Prevention Act. (Public)
8		-	Sponsors: Representatives N. Jackson, Stevens, Balkcom, and Biggs (Primary Sponsors).
9		-	For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10		-	Referred to: Housing and Development, if favorable, Judiciary 2, if favorable, Rules, Calendar,
11		-	and Operations of the House
12		-	March 27, 2025
13		-	H535 -v-1
	9	+	Sponsors: Representative N. Jackson.
	10	+	Referred to:
	11	+
	12	+	DRH10246 -NO-30A
14	13		A BILL TO BE ENTITLED 1
15	14		AN ACT TO PENALIZE THE FILING OF FRAUDULENT DEEDS AND CONVEYANCES 2
16	15		AND TO PREVENT TITLE FRAUD BY AUTHORIZING THE REGISTER OF DEEDS 3
17	16		TO REQUIRE THE PRODUCTION OF A GOVERNMENT -ISSUED PHOTOGRAPHIC 4
18	17		IDENTIFICATION CARD BEFORE RECORDING A DEED OR CERTAIN OTHER 5
19	18		INSTRUMENTS, REQUIRING THE REGISTER OF DEEDS TO PROVIDE ACCESS TO 6
20	19		A FRAUD DETECTION ALERT SYSTEM, AND PROVIDING FOR A SEPARATE 7
21	20		CAUSE OF ACTION TO QUIET TITLE AFTER AN ATTEMPTED FRAUDULENT 8
22	21		CONVEYANCE. 9
23	22		The General Assembly of North Carolina enacts: 10
24	23		SECTION 1. G.S. 14-122 reads as rewritten: 11
25	24		"§ 14-122. Forgery of deeds, wills and certain other instruments.instruments; presentation 12
26	25		for filing. 13
27	26		(a) If any person, of his own head and imagination, or by false conspiracy or fraud with 14
28	27		others, shall wittingly and falsely forge and make, or shall cause or wittingly assent to the forging 15
29	28		or making of, or shall show forth in evidence, knowing the same to be forged, any deed, lease or 16
30	29		will, or any bond, writing obligatory, bill of exchange, promissory note, endorsement or 17
31	30		assignment thereof; or any acquittance or receipt for money or goods; or any receipt or release 18
32	31		for any bond, note, bill or any other security for the payment of money; or any order for the 19
33	32		payment of money or delivery of goods, with intent, in any of said instances, to defraud any 20
34	33		person or corporation, and thereof shall be duly convicted, the person so offending shall be 21
35	34		punished as a Class H felon. 22
36	35		(b) It shall be unlawful for any person to present for filing or recording in a public record 23
37	36		or a private record generally available to the public a deed or transfer of real property of an owner, 24
38	37		knowing or having reason to know that the deed or conveyance is false or contains a materially 25
39	38		false, fictitious, or fraudulent statement or representation. If the value of property is one hundred 26
40	39		thousand dollars ($100,000) or more, a violation of this subsection shall be punished as a Class 27
41	40		C felony. If the value of property is less than one hundred thousand dollars ($100,000), a violation 28
42	41		of this subsection is a Class G felony." 29
43	42		SECTION 2. Article 2 of Chapter 161 of the General Statutes is amended by adding 30
44	43		a new section to read: 31
45	44		"§ 161-32. Identity verification and suspicious instruments. 32
46		-	(a) Definitions. – The following definitions apply in this section: 33 General Assembly Of North Carolina Session 2025
47		-	Page 2 House Bill 535-First Edition
48		-	(1) Instrument. – Any document that purports to convey title to, or an interest in, 1
49		-	real property, such as a deed, deed of trust, or other similar document. 2
50		-	(2) Suspicious instrument. – An instrument submitted for registration for which 3
51		-	the register of deeds has found any of the following: 4
52		-	a. The name or information of an acknowledging officer who has 5
53		-	purported to acknowledge the instrument does not match the official 6
54		-	records for that acknowledging officer. 7
55		-	b. The instrument purports not to be subject to the laws of the United 8
56		-	States or the laws of this State. 9
57		-	c. The document does not conform to registration requirements 10
58		-	established by the laws of this State. 11
59		-	d. The instrument is materially false, fictitious, or fraudulent and has not 12
60		-	been submitted by a trusted submitter or an authorized representative 13
61		-	of a trusted submitter. 14
62		-	(3) Trusted submitter. – Includes all of the following: 15
63		-	a. A title insurance company as described in Article 26 of Chapter 28 of 16
64		-	the General Statutes. 17
65		-	b. An attorney licensed to practice in this State. 18
66		-	c. A financial institution as defined in G.S. 53B-2. 19
67		-	(b) Identity Verification. – Notwithstanding any other provision to the contrary in this 20
68		-	Chapter, when an instrument is presented to the register of deeds for registration by an individual 21
69		-	who is not a trusted submitter or the authorized agent of a trusted submitter, the register of deeds 22
70		-	shall require the person presenting the instrument to produce a government-issued photographic 23
71		-	identification card as follows: 24
72		-	(1) If an individual who is not a trusted submitter or an authorized agent of a 25
73		-	trusted submitter presents an instrument to the register of deeds for registration 26
74		-	in person, the register of deeds shall require the individual to produce a 27
75		-	government-issued photographic identification card for inspection by the 28
76		-	register of deeds before registering the instrument. The register of deeds must 29
77		-	record the name and address of such person, as the information appears on the 30
78		-	identification card, in a record to be kept by the register of deeds, along with 31
79		-	the official records book and page number or instrument number of the 32
80		-	instrument registered in connection to the production of the identification 33
81		-	card. Such a record may not be made available for viewing on the register of 34
82		-	deeds' official public website but shall be made available for public inspection 35
83		-	and copying as required by the public records laws of this State. 36
84		-	(2) If an individual who is not a trusted submitter or an authorized agent of a 37
85		-	trusted submitter presents an instrument in the form of an electronic 38
86		-	document, as defined in G.S. 47-16.3(2), to the register of deeds, as provided 39
87		-	by Article 1A of Chapter 47 of the General Statutes, the register of deeds shall 40
88		-	require the individual to submit a photocopy of a government-issued 41
89		-	photographic identification card before registering the instrument. The 42
90		-	register of deeds must note on the photocopy of the identification card the 43
91		-	official records book and page number or instrument number assigned to the 44
92		-	instrument registered in connection to the submission of the photocopy of the 45
93		-	identification card and retain the photocopy of such identification card in a 46
94		-	record to be kept by the register of deeds. Such a record may not be made 47
95		-	available for viewing on the register of deeds' official public website but shall 48
96		-	be made available for public inspection and copying as required by the public 49
97		-	records laws of this State. However, a person who submits a photocopy of his 50
98		-	or her identification card under this subsection may redact from the photocopy 51 General Assembly Of North Carolina Session 2025
99		-	House Bill 535-First Edition Page 3
100		-	of such identification card before submission all of the information he or she 1
101		-	does not wish to be made public, except for his or her name, address, 2
102		-	photograph, birthdate, and ID expiration date. 3
103		-	(c) Refusing to Register. – Notwithstanding any other provision to the contrary in this 4
104		-	Chapter, the register of deeds shall refuse to register an instrument if one of the following occurs: 5
105		-	(1) The register of deeds deems the instrument presented for registration a 6
106		-	suspicious instrument under subdivision (a)(2) of this section. 7
107		-	(2) The individual presenting the instrument for registration is not a trusted 8
108		-	submitter or an authorized representative of a trusted submitter and fails to 9
109		-	provide the register of deeds with a government-issued photographic 10
110		-	identification card as required by subsection (b) of this section. 11
111		-	(3) The individual presenting the instrument for registration is not a trusted 12
112		-	submitter or an authorized representative of a trusted submitter and the name 13
113		-	on the government-issued photographic identification card presented by the 14
114		-	individual pursuant to subsection (b) of this section does not match the name 15
115		-	of the grantor or conveying party in the instrument presented for registration. 16
116		-	(d) Additional Actions for Suspicious Instruments. – Upon finding that an instrument 17
117		-	presented for registration is a suspicious instrument under subdivision (a)(2) of this section, the 18
118		-	register of deeds may do any of the following: 19
119		-	(1) Report the suspicious instrument to an appropriate law enforcement agency. 20
120		-	(2) Notify the acknowledging officer purported to have acknowledged the 21
121		-	instrument of the reason for the register of deeds finding that the instrument 22
122		-	is a suspicious instrument. 23
123		-	(e) Notice of Requirements. – The register of deeds shall provide notice of the identity 24
124		-	verification requirement described in subsection (b) of this section on the register of deeds' 25
125		-	official public website. 26
126		-	(f) Legal Protections and Remedies. – 27
127		-	(1) An injured person has a cause of action against a register of deeds for that 28
128		-	register of deeds' refusal to record an instrument based on that register of 29
129		-	deeds' allegedly erroneous finding that the instrument is a suspicious 30
130		-	instrument, as allowed by subdivision (c)(1) of this section. In an action 31
131		-	authorized by this subsection, an injured person is only entitled to appropriate 32
132		-	declaratory or injunctive relief. Notwithstanding G.S. 161-16, a register of 33
133		-	deeds shall not be liable for damages or any other claim of monetary relief in 34
134		-	an action brought under this subdivision. 35
135		-	(2) There is no right or cause of action against, and no civil liability on the part 36
136		-	of, the register of deeds or the county with respect to the register of deeds' 37
137		-	requirement of an identification card, or any refusal to register an instrument 38
138		-	as allowed by subdivision (c)(2) or (c)(3) of this section. 39
139		-	(g) Confidentiality. – Nothing in this section shall be construed to require the register of 40
140		-	deeds to provide or allow access to a record or other information that is considered confidential 41
141		-	information as defined by G.S. 132-1.2." 42
142		-	SECTION 3. Article 2 of Chapter 161 of the General Statutes is amended by adding 43
143		-	a new section to read: 44
144		-	"§ 161-33. Fraud detection alert system. 45
145		-	(a) The following definitions apply in this section: 46
146		-	(1) Fraud detection alert system. – A system which sends automated recording 47
147		-	notifications. 48
148		-	(2) Land record. – A deed, deed of trust, mortgage, or other document purporting 49
149		-	to convey or encumber an interest in real property. 50 General Assembly Of North Carolina Session 2025
150		-	Page 4 House Bill 535-First Edition
151		-	(3) Monitored identity. – A personal, trust, or business name submitted by a 1
152		-	registrant for monitoring under a fraud detection alert system. 2
153		-	(4) Recording notification. – A notification sent by electronic mail indicating to 3
154		-	a registrant that a land record associated with the registrant's monitored 4
155		-	identity has been recorded in the office of the register of deeds. 5
156		-	(5) Registrant. – A person who enrolls in a fraud detection alert system. 6
157		-	(b) The register of deeds shall ensure that registration for a fraud detection alert system 7
158		-	is possible through an electronic registration portal, which portal shall include at least all of the 8
159		-	following features: 9
160		-	(1) Be accessible through a direct link on the register of deeds' official public 10
161		-	website. 11
162		-	(2) Allow a registrant to subscribe to receive recording notifications for at least 12
163		-	five monitored identities per valid electronic mail address provided. 13
164		-	(3) Include a method by which a registrant may unsubscribe from the system. 14
165		-	(4) List a phone number at which the register of deeds' office may be contacted 15
166		-	during normal business hours with questions related to the system. 16
167		-	(5) Send an automated electronic mail message to a registrant confirming the 17
168		-	registrant's successful registration for or action to unsubscribe from the 18
169		-	system, which message must identify each monitored identity for which a 19
170		-	subscription was received or canceled. 20
171		-	(c) When a land record is recorded for a monitored identity, a recording notification must 21
172		-	be sent within five business days after the recording has been completed to each registrant who 22
173		-	is subscribed to receive recording notifications for that monitored identity. Such notification must 23
174		-	contain at least the following: 24
175		-	(1) Information identifying the monitored identity for which the land record was 25
176		-	filed. 26
177		-	(2) The land record's recording date. 27
178		-	(3) The official record book and page number or instrument number assigned to 28
179		-	the land record by the register of deeds. 29
180		-	(4) Instructions for electronically searching for and viewing the land record using 30
181		-	the assigned official record book and page number or instrument number. 31
182		-	(5) A phone number at which the register of deeds office may be contacted during 32
183		-	normal business hours with questions related to the recording notification. 33
184		-	(d) There is no right or cause of action against, and no civil liability on the part of, the 34
185		-	register of deeds or the county with respect to the creation, maintenance, or operation of a fraud 35
186		-	detection alert system as required by this section. 36
187		-	(e) The register of deeds may charge a reasonable fee to a registrant for enrolling in the 37
188		-	fraud detection alert system in an amount that does not exceed the actual cost of maintaining and 38
189		-	allowing access to the system." 39
190		-	SECTION 4. Article 1 of Chapter 41 of the General Statutes is amended by adding 40
191		-	a new section to read: 41
192		-	"§ 41-10.2. Titles quieted; fraudulent instruments. 42
193		-	(a) As used in this section, the term "instrument" means any of the following: 43
194		-	(1) A transfer of title to real property by deed or devise or other instrument 44
195		-	transferring title to real property. 45
196		-	(2) A deed of trust, mortgage, judgment, lien, encumbrance, financing statement, 46
197		-	affidavit, notice, memorandum, or any other instrument that establishes a 47
198		-	security interest in real property. 48
199		-	(3) A contract, right of refusal, or any other instrument that purports to establish 49
200		-	an interest, encumbrance, claim, or right relating to real property. 50 General Assembly Of North Carolina Session 2025
201		-	House Bill 535-First Edition Page 5
202		-	(b) The actual owner of an interest in real property subject to a recorded false, fictitious, 1
203		-	or fraudulent instrument may seek expedited relief under this section by filing an action in district 2
204		-	court alleging the filing or recording of a false, fictitious, or fraudulent instrument in a public 3
205		-	record or a private record generally available to the public. The notice shall be served and proof 4
206		-	of service shall be made in any manner provided by the Rules of Civil Procedure for service of 5
207		-	summons, including service by registered mail or certified mail, return receipt requested. After a 6
208		-	minimum of five days' notice in a manner prescribed in Rule 5 of the Rules of Civil Procedure 7
209		-	and opportunity to be heard to all persons claiming an ownership interest in the property, any 8
210		-	lienholder of record, including any person to whom a security instrument directs notice to be sent 9
211		-	and any person obligated to repay the indebtedness secured by the instrument, the court shall 10
212		-	convene a hearing. For purposes of the notice requirement in this subsection, the party seeking 11
213		-	relief may serve the person listed as grantor in the recorded purportedly false, fictitious, or 12
214		-	fraudulent instrument at the address listed in the instrument. If the court finds that there is no 13
215		-	statutory, contractual, or other merited legal justification for the instrument, the court shall find 14
216		-	that the recorded instrument is false and void as a matter of law and shall enter an order to remove 15
217		-	the cloud from the title to the real property. The submission of an original instrument 16
218		-	demonstrating source of title, affidavit, or a lis pendens, notice of previous fraud, or other similar 17
219		-	instrument recorded by the actual owner of an interest in the real property shall be considered 18
220		-	evidence of fraudulent activity. The court may also include in the order any of the following 19
221		-	types of relief: 20
222		-	(1) Grant to a prevailing party possession of the real property and order the 21
223		-	ejectment of any party on the premises. 22
224		-	(2) Award attorneys' fees and other costs for the action to the prevailing party. 23
225		-	(3) Stay any proceedings involving the subject real property in which the property 24
226		-	owner or owners are not a party to. 25
227		-	(4) Upon a finding by the court that an action filed under this section is frivolous 26
228		-	or malicious, assess a civil penalty of not more than ten thousand dollars 27
229		-	($10,000), of which the clear proceeds assessed under this subdivision shall 28
230		-	be remitted to the Civil Penalty and Forfeiture Fund in accordance with 29
231		-	G.S. 115C-457.2. 30
232		-	(5) Upon a finding by the court that a party has presented for filing or recording 31
233		-	a false, fictitious, or fraudulent instrument as described in this section more 32
234		-	than once, enter a pre-filing injunction against the party. 33
235		-	(6) Enjoin a party from listing the real property for sale, lease, or any other similar 34
236		-	advertisement. 35
237		-	(c) Upon being presented with an order duly issued by a court of competent jurisdiction 36
238		-	of this State declaring that an instrument already recorded is false and void as a matter of law, 37
239		-	the register of deeds or clerk of superior court that received the recording shall record and 38
240		-	cross-index the court's order finding the instrument to be false. The register of deeds or clerk of 39
241		-	superior court may also conspicuously mark on the first page of the original record previously 40
242		-	recorded the following statement: "THE CLAIM ASSERTED IN THIS DOCUMENT IS FALSE 41
243		-	AND IS NOT PROVIDED FOR BY THE GENERAL LAWS OF THIS STATE. " 42
244		-	(d) In addition to any civil penalties provided for in this section, the presentation of an 43
245		-	instrument for recording with a register of deeds or a clerk of superior court that is determined to 44
246		-	be materially false, fictitious, or fraudulent shall constitute a violation of G.S. 75-1.1. 45
247		-	(e) The Administrative Office of the Courts shall develop a form for the expedited relief 46
248		-	filing established by this section and the clerk of superior court shall make the form available for 47
249		-	a petitioner. In addition to the requirements set forth in this section, the form shall include clear 48
250		-	language notifying the filing party that providing false information or statements is perjury 49
251		-	pursuant to G.S. 14-209 and punishable as a Class F felony." 50 General Assembly Of North Carolina Session 2025
252		-	Page 6 House Bill 535-First Edition
253		-	SECTION 5. Article 4 of Chapter 47 of the General Statutes is amended by adding 1
254		-	a new section to read: 2
255		-	"§ 47-108.30. No presumption of priority for certain recorded instruments. 3
256		-	A deed or conveyance of an interest in real property shall not have a presumption of priority 4
257		-	based upon the time of registration and shall not constitute color of title if any of the following 5
258		-	criteria are met: 6
259		-	(1) The deed or conveyance does not comply with the provisions of G.S. 47-18, 7
260		-	47-20, 47-118, 47-119, 47-119.1, or 47-120, as applicable. 8
261		-	(2) The deed or conveyance does not contain a signature and acknowledgement 9
262		-	of at least one record owner at the time the conveyance is made." 10
263		-	SECTION 6. Section 1 of this act becomes effective December 1, 2025, and applies 11
264		-	to offenses committed on or after that date. Sections 2, 3, and 5 of this act become effective 12
265		-	October 1, 2025, and apply to instruments and documents presented for registration on or after 13
266		-	that date. Section 4 of this act becomes effective October 1, 2025, and applies to causes of action 14
267		-	arising on or after that date. The remainder of this act is effective when it becomes law. 15
	45	+	(a) Definitions. – The following definitions apply in this section: 33
	46	+	(1) Instrument. – Any document that purports to convey title to, or an interest in, 34
	47	+	real property, such as a deed, deed of trust, or other similar document. 35
	48	+	H.B. 535
	49	+	Mar 26, 2025
	50	+	HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	51	+	Page 2 DRH10246-NO-30A
	52	+	(2) Suspicious instrument. – An instrument submitted for registration for which 1
	53	+	the register of deeds has found any of the following: 2
	54	+	a. The name or information of an acknowledging officer who has 3
	55	+	purported to acknowledge the instrument does not match the official 4
	56	+	records for that acknowledging officer. 5
	57	+	b. The instrument purports not to be subject to the laws of the United 6
	58	+	States or the laws of this State. 7
	59	+	c. The document does not conform to registration requirements 8
	60	+	established by the laws of this State. 9
	61	+	d. The instrument is materially false, fictitious, or fraudulent and has not 10
	62	+	been submitted by a trusted submitter or an authorized representative 11
	63	+	of a trusted submitter. 12
	64	+	(3) Trusted submitter. – Includes all of the following: 13
	65	+	a. A title insurance company as described in Article 26 of Chapter 28 of 14
	66	+	the General Statutes. 15
	67	+	b. An attorney licensed to practice in this State. 16
	68	+	c. A financial institution as defined in G.S. 53B-2. 17
	69	+	(b) Identity Verification. – Notwithstanding any other provision to the contrary in this 18
	70	+	Chapter, when an instrument is presented to the register of deeds for registration by an individual 19
	71	+	who is not a trusted submitter or the authorized agent of a trusted submitter, the register of deeds 20
	72	+	shall require the person presenting the instrument to produce a government-issued photographic 21
	73	+	identification card as follows: 22
	74	+	(1) If an individual who is not a trusted submitter or an authorized agent of a 23
	75	+	trusted submitter presents an instrument to the register of deeds for registration 24
	76	+	in person, the register of deeds shall require the individual to produce a 25
	77	+	government-issued photographic identification card for inspection by the 26
	78	+	register of deeds before registering the instrument. The register of deeds must 27
	79	+	record the name and address of such person, as the information appears on the 28
	80	+	identification card, in a record to be kept by the register of deeds, along with 29
	81	+	the official records book and page number or instrument number of the 30
	82	+	instrument registered in connection to the production of the identification 31
	83	+	card. Such a record may not be made available for viewing on the register of 32
	84	+	deeds' official public website but shall be made available for public inspection 33
	85	+	and copying as required by the public records laws of this State. 34
	86	+	(2) If an individual who is not a trusted submitter or an authorized agent of a 35
	87	+	trusted submitter presents an instrument in the form of an electronic 36
	88	+	document, as defined in G.S. 47-16.3(2), to the register of deeds, as provided 37
	89	+	by Article 1A of Chapter 47 of the General Statutes, the register of deeds shall 38
	90	+	require the individual to submit a photocopy of a government-issued 39
	91	+	photographic identification card before registering the instrument. The 40
	92	+	register of deeds must note on the photocopy of the identification card the 41
	93	+	official records book and page number or instrument number assigned to the 42
	94	+	instrument registered in connection to the submission of the photocopy of the 43
	95	+	identification card and retain the photocopy of such identification card in a 44
	96	+	record to be kept by the register of deeds. Such a record may not be made 45
	97	+	available for viewing on the register of deeds' official public website but shall 46
	98	+	be made available for public inspection and copying as required by the public 47
	99	+	records laws of this State. However, a person who submits a photocopy of his 48
	100	+	or her identification card under this subsection may redact from the photocopy 49
	101	+	of such identification card before submission all of the information he or she 50 General Assembly Of North Carolina Session 2025
	102	+	DRH10246-NO-30A Page 3
	103	+	does not wish to be made public, except for his or her name, address, 1
	104	+	photograph, birthdate, and ID expiration date. 2
	105	+	(c) Refusing to Register. – Notwithstanding any other provision to the contrary in this 3
	106	+	Chapter, the register of deeds shall refuse to register an instrument if one of the following occurs: 4
	107	+	(1) The register of deeds deems the instrument presented for registration a 5
	108	+	suspicious instrument under subdivision (a)(2) of this section. 6
	109	+	(2) The individual presenting the instrument for registration is not a trusted 7
	110	+	submitter or an authorized representative of a trusted submitter and fails to 8
	111	+	provide the register of deeds with a government-issued photographic 9
	112	+	identification card as required by subsection (b) of this section. 10
	113	+	(3) The individual presenting the instrument for registration is not a trusted 11
	114	+	submitter or an authorized representative of a trusted submitter and the name 12
	115	+	on the government-issued photographic identification card presented by the 13
	116	+	individual pursuant to subsection (b) of this section does not match the name 14
	117	+	of the grantor or conveying party in the instrument presented for registration. 15
	118	+	(d) Additional Actions for Suspicious Instruments. – Upon finding that an instrument 16
	119	+	presented for registration is a suspicious instrument under subdivision (a)(2) of this section, the 17
	120	+	register of deeds may do any of the following: 18
	121	+	(1) Report the suspicious instrument to an appropriate law enforcement agency. 19
	122	+	(2) Notify the acknowledging officer purported to have acknowledged the 20
	123	+	instrument of the reason for the register of deeds finding that the instrument 21
	124	+	is a suspicious instrument. 22
	125	+	(e) Notice of Requirements. – The register of deeds shall provide notice of the identity 23
	126	+	verification requirement described in subsection (b) of this section on the register of deeds' 24
	127	+	official public website. 25
	128	+	(f) Legal Protections and Remedies. – 26
	129	+	(1) An injured person has a cause of action against a register of deeds for that 27
	130	+	register of deeds' refusal to record an instrument based on that register of 28
	131	+	deeds' allegedly erroneous finding that the instrument is a suspicious 29
	132	+	instrument, as allowed by subdivision (c)(1) of this section. In an action 30
	133	+	authorized by this subsection, an injured person is only entitled to appropriate 31
	134	+	declaratory or injunctive relief. Notwithstanding G.S. 161-16, a register of 32
	135	+	deeds shall not be liable for damages or any other claim of monetary relief in 33
	136	+	an action brought under this subdivision. 34
	137	+	(2) There is no right or cause of action against, and no civil liability on the part 35
	138	+	of, the register of deeds or the county with respect to the register of deeds' 36
	139	+	requirement of an identification card, or any refusal to register an instrument 37
	140	+	as allowed by subdivision (c)(2) or (c)(3) of this section. 38
	141	+	(g) Confidentiality. – Nothing in this section shall be construed to require the register of 39
	142	+	deeds to provide or allow access to a record or other information that is considered confidential 40
	143	+	information as defined by G.S. 132-1.2." 41
	144	+	SECTION 3. Article 2 of Chapter 161 of the General Statutes is amended by adding 42
	145	+	a new section to read: 43
	146	+	"§ 161-33. Fraud detection alert system. 44
	147	+	(a) The following definitions apply in this section: 45
	148	+	(1) Fraud detection alert system. – A system which sends automated recording 46
	149	+	notifications. 47
	150	+	(2) Land record. – A deed, deed of trust, mortgage, or other document purporting 48
	151	+	to convey or encumber an interest in real property. 49
	152	+	(3) Monitored identity. – A personal, trust, or business name submitted by a 50
	153	+	registrant for monitoring under a fraud detection alert system. 51 General Assembly Of North Carolina Session 2025
	154	+	Page 4 DRH10246-NO-30A
	155	+	(4) Recording notification. – A notification sent by electronic mail indicating to 1
	156	+	a registrant that a land record associated with the registrant's monitored 2
	157	+	identity has been recorded in the office of the register of deeds. 3
	158	+	(5) Registrant. – A person who enrolls in a fraud detection alert system. 4
	159	+	(b) The register of deeds shall ensure that registration for a fraud detection alert system 5
	160	+	is possible through an electronic registration portal, which portal shall include at least all of the 6
	161	+	following features: 7
	162	+	(1) Be accessible through a direct link on the register of deeds' official public 8
	163	+	website. 9
	164	+	(2) Allow a registrant to subscribe to receive recording notifications for at least 10
	165	+	five monitored identities per valid electronic mail address provided. 11
	166	+	(3) Include a method by which a registrant may unsubscribe from the system. 12
	167	+	(4) List a phone number at which the register of deeds' office may be contacted 13
	168	+	during normal business hours with questions related to the system. 14
	169	+	(5) Send an automated electronic mail message to a registrant confirming the 15
	170	+	registrant's successful registration for or action to unsubscribe from the 16
	171	+	system, which message must identify each monitored identity for which a 17
	172	+	subscription was received or canceled. 18
	173	+	(c) When a land record is recorded for a monitored identity, a recording notification must 19
	174	+	be sent within five business days after the recording has been completed to each registrant who 20
	175	+	is subscribed to receive recording notifications for that monitored identity. Such notification must 21
	176	+	contain at least the following: 22
	177	+	(1) Information identifying the monitored identity for which the land record was 23
	178	+	filed. 24
	179	+	(2) The land record's recording date. 25
	180	+	(3) The official record book and page number or instrument number assigned to 26
	181	+	the land record by the register of deeds. 27
	182	+	(4) Instructions for electronically searching for and viewing the land record using 28
	183	+	the assigned official record book and page number or instrument number. 29
	184	+	(5) A phone number at which the register of deeds office may be contacted during 30
	185	+	normal business hours with questions related to the recording notification. 31
	186	+	(d) There is no right or cause of action against, and no civil liability on the part of, the 32
	187	+	register of deeds or the county with respect to the creation, maintenance, or operation of a fraud 33
	188	+	detection alert system as required by this section. 34
	189	+	(e) The register of deeds may charge a reasonable fee to a registrant for enrolling in the 35
	190	+	fraud detection alert system in an amount that does not exceed the actual cost of maintaining and 36
	191	+	allowing access to the system." 37
	192	+	SECTION 4. Article 1 of Chapter 41 of the General Statutes is amended by adding 38
	193	+	a new section to read: 39
	194	+	"§ 41-10.2. Titles quieted; fraudulent instruments. 40
	195	+	(a) As used in this section, the term "instrument" means any of the following: 41
	196	+	(1) A transfer of title to real property by deed or devise or other instrument 42
	197	+	transferring title to real property. 43
	198	+	(2) A deed of trust, mortgage, judgment, lien, encumbrance, financing statement, 44
	199	+	affidavit, notice, memorandum, or any other instrument that establishes a 45
	200	+	security interest in real property. 46
	201	+	(3) A contract, right of refusal, or any other instrument that purports to establish 47
	202	+	an interest, encumbrance, claim, or right relating to real property. 48
	203	+	(b) The actual owner of an interest in real property subject to a recorded false, fictitious, 49
	204	+	or fraudulent instrument may seek expedited relief under this section by filing an action in district 50
	205	+	court alleging the filing or recording of a false, fictitious, or fraudulent instrument in a public 51 General Assembly Of North Carolina Session 2025
	206	+	DRH10246-NO-30A Page 5
	207	+	record or a private record generally available to the public. The notice shall be served and proof 1
	208	+	of service shall be made in any manner provided by the Rules of Civil Procedure for service of 2
	209	+	summons, including service by registered mail or certified mail, return receipt requested. After a 3
	210	+	minimum of five days' notice in a manner prescribed in Rule 5 of the Rules of Civil Procedure 4
	211	+	and opportunity to be heard to all persons claiming an ownership interest in the property, any 5
	212	+	lienholder of record, including any person to whom a security instrument directs notice to be sent 6
	213	+	and any person obligated to repay the indebtedness secured by the instrument, the court shall 7
	214	+	convene a hearing. For purposes of the notice requirement in this subsection, the party seeking 8
	215	+	relief may serve the person listed as grantor in the recorded purportedly false, fictitious, or 9
	216	+	fraudulent instrument at the address listed in the instrument. If the court finds that there is no 10
	217	+	statutory, contractual, or other merited legal justification for the instrument, the court shall find 11
	218	+	that the recorded instrument is false and void as a matter of law and shall enter an order to remove 12
	219	+	the cloud from the title to the real property. The submission of an original instrument 13
	220	+	demonstrating source of title, affidavit, or a lis pendens, notice of previous fraud, or other similar 14
	221	+	instrument recorded by the actual owner of an interest in the real property shall be considered 15
	222	+	evidence of fraudulent activity. The court may also include in the order any of the following 16
	223	+	types of relief: 17
	224	+	(1) Grant to a prevailing party possession of the real property and order the 18
	225	+	ejectment of any party on the premises. 19
	226	+	(2) Award attorneys' fees and other costs for the action to the prevailing party. 20
	227	+	(3) Stay any proceedings involving the subject real property in which the property 21
	228	+	owner or owners are not a party to. 22
	229	+	(4) Upon a finding by the court that an action filed under this section is frivolous 23
	230	+	or malicious, assess a civil penalty of not more than ten thousand dollars 24
	231	+	($10,000), of which the clear proceeds assessed under this subdivision shall 25
	232	+	be remitted to the Civil Penalty and Forfeiture Fund in accordance with 26
	233	+	G.S. 115C-457.2. 27
	234	+	(5) Upon a finding by the court that a party has presented for filing or recording 28
	235	+	a false, fictitious, or fraudulent instrument as described in this section more 29
	236	+	than once, enter a pre-filing injunction against the party. 30
	237	+	(6) Enjoin a party from listing the real property for sale, lease, or any other similar 31
	238	+	advertisement. 32
	239	+	(c) Upon being presented with an order duly issued by a court of competent jurisdiction 33
	240	+	of this State declaring that an instrument already recorded is false and void as a matter of law, 34
	241	+	the register of deeds or clerk of superior court that received the recording shall record and 35
	242	+	cross-index the court's order finding the instrument to be false. The register of deeds or clerk of 36
	243	+	superior court may also conspicuously mark on the first page of the original record previously 37
	244	+	recorded the following statement: "THE CLAIM ASSERTED IN THIS DOCUMENT IS FALSE 38
	245	+	AND IS NOT PROVIDED FOR BY THE GENERAL LAWS OF THIS STATE. " 39
	246	+	(d) In addition to any civil penalties provided for in this section, the presentation of an 40
	247	+	instrument for recording with a register of deeds or a clerk of superior court that is determined to 41
	248	+	be materially false, fictitious, or fraudulent shall constitute a violation of G.S. 75-1.1. 42
	249	+	(e) The Administrative Office of the Courts shall develop a form for the expedited relief 43
	250	+	filing established by this section and the clerk of superior court shall make the form available for 44
	251	+	a petitioner. In addition to the requirements set forth in this section, the form shall include clear 45
	252	+	language notifying the filing party that providing false information or statements is perjury 46
	253	+	pursuant to G.S. 14-209 and punishable as a Class F felony." 47
	254	+	SECTION 5. Article 4 of Chapter 47 of the General Statutes is amended by adding 48
	255	+	a new section to read: 49
	256	+	"§ 47-108.30. No presumption of priority for certain recorded instruments. 50 General Assembly Of North Carolina Session 2025
	257	+	Page 6 DRH10246-NO-30A
	258	+	A deed or conveyance of an interest in real property shall not have a presumption of priority 1
	259	+	based upon the time of registration and shall not constitute color of title if any of the following 2
	260	+	criteria are met: 3
	261	+	(1) The deed or conveyance does not comply with the provisions of G.S. 47-18, 4
	262	+	47-20, 47-118, 47-119, 47-119.1, or 47-120, as applicable. 5
	263	+	(2) The deed or conveyance does not contain a signature and acknowledgement 6
	264	+	of at least one record owner at the time the conveyance is made." 7
	265	+	SECTION 6. Section 1 of this act becomes effective December 1, 2025, and applies 8
	266	+	to offenses committed on or after that date. Sections 2, 3, and 5 of this act become effective 9
	267	+	October 1, 2025, and apply to instruments and documents presented for registration on or after 10
	268	+	that date. Section 4 of this act becomes effective October 1, 2025, and applies to causes of action 11
	269	+	arising on or after that date. The remainder of this act is effective when it becomes law. 12