GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S D
SENATE BILL DRS35163-NO-45A
Short Title: Title Fraud Prevention. (Public)
Sponsors: Senators Sawrey, Daniel, and B. Newton (Primary Sponsors).
Referred to:
*DRS35163 -NO-45A*
A BILL TO BE ENTITLED 1
AN ACT TO PREVENT TITLE FRAUD BY AUTHORIZING THE REGISTER OF DEEDS 2
TO REQUIRE THE PRODUCTION OF A GOVERNMENT -ISSUED PHOTOGRAPHIC 3
IDENTIFICATION CARD BEFORE RECORDING A DEED OR CERTAIN OTHER 4
INSTRUMENTS AND PROVIDING FOR A SEPARATE CAUSE OF ACTION TO 5
QUIET TITLE AFTER AN ATTEMPTED FRAUDULENT CONVEYANCE. 6
The General Assembly of North Carolina enacts: 7
SECTION 1. Article 2 of Chapter 161 of the General Statutes is amended by adding 8
a new section to read: 9
"§ 161-32. Identity verification. 10
(a) Definitions. – The following definitions apply in this section: 11
(1) Instrument. – Any document that purports to convey title to, or an interest in, 12
real property, such as a deed, deed of trust, or other similar document. 13
(2) Trusted submitter. – Includes all of the following: 14
a. A title insurance company as described in Article 26 of Chapter 28 of 15
the General Statutes. 16
b. An attorney licensed to practice in this State. 17
c. A financial institution as defined in G.S. 53B-2. 18
(b) Identity Verification. – Notwithstanding any other provision to the contrary in this 19
Chapter, when an instrument is presented to the register of deeds for registration by an individual 20
who is not a trusted submitter or the authorized agent of a trusted submitter, the register of deeds 21
shall require the person presenting the instrument to produce a government-issued photographic 22
identification card as follows: 23
(1) If an individual who is not a trusted submitter or an authorized agent of a 24
trusted submitter presents an instrument to the register of deeds for registration 25
in person, the register of deeds shall require the individual to produce a 26
government-issued photographic identification card for inspection by the 27
register of deeds before registering the instrument. The register of deeds must 28
record the name and address of such person, as the information appears on the 29
identification card, in a record to be kept by the register of deeds, along with 30
the official records book and page number or instrument number of the 31
instrument registered in connection to the production of the identification 32
card. Such a record may not be made available for viewing on the register of 33
deeds' official public website but shall be made available for public inspection 34
and copying as required by the public records laws of this State. 35
FILED SENATE
Mar 24, 2025
S.B. 423
PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
Page 2 DRS35163-NO-45A
(2) If an individual who is not a trusted submitter or an authorized agent of a 1
trusted submitter presents an instrument in the form of an electronic 2
document, as defined in G.S. 47-16.3(2), to the register of deeds, as provided 3
by Article 1A of Chapter 47 of the General Statutes, the register of deeds shall 4
require the individual to submit a photocopy of a government-issued 5
photographic identification card before registering the instrument. The 6
register of deeds must note on the photocopy of the identification card the 7
official records book and page number or instrument number assigned to the 8
instrument registered in connection to the submission of the photocopy of the 9
identification card and retain the photocopy of such identification card in a 10
record to be kept by the register of deeds. Such a record may not be made 11
available for viewing on the register of deeds' official public website but shall 12
be made available for public inspection and copying as required by the public 13
records laws of this State. However, a person who submits a photocopy of his 14
or her identification card under this subsection may redact from the photocopy 15
of such identification card before submission all of the information he or she 16
does not wish to be made public, except for his or her name, address, and 17
photograph. 18
(c) Refusing to Register. – Notwithstanding any other provision to the contrary in this 19
Chapter, the register of deeds shall refuse to register an instrument if one of the following occurs: 20
(1) The individual presenting the instrument for registration is not a trusted 21
submitter or an authorized representative of a trusted submitter and fails to 22
provide the register of deeds with a government-issued photographic 23
identification card as required by subsection (b) of this section. 24
(2) The individual presenting the instrument for registration is not a trusted 25
submitter or an authorized representative of a trusted submitter and the name 26
on the government-issued photographic identification card presented by the 27
individual pursuant to subsection (b) of this section does not match the name 28
of the grantor or conveying party in the instrument presented for registration. 29
(d) Notice of Requirements. – The register of deeds shall provide notice of the identity 30
verification requirement described in subsection (b) of this section to the register of deeds' official 31
public website. 32
(e) Legal Protections and Remedies. – There is no right or cause of action against, and 33
no civil liability on the part of, the register of deeds or the county with respect to the register of 34
deeds' requirement of an identification card, or any refusal to register an instrument as allowed 35
by subsection (c) of this section. 36
(f) Confidentiality. – Nothing in this section shall be construed to require the register of 37
deeds to provide or allow access to a record or other information that is considered confidential 38
information as defined by G.S. 132-1.2." 39
SECTION 2. Article 1 of Chapter 41 of the General Statutes is amended by adding 40
a new section to read: 41
"§ 41-10.2 Titles quieted; fraudulent instruments. 42
(a) As used in this section, the term "instrument" means any of the following: 43
(1) A transfer of title to real property by deed or devise or other instrument 44
transferring title to real property. 45
(2) A deed of trust, mortgage, judgment, lien, encumbrance, financing statement, 46
affidavit, notice, memorandum, or any other instrument that establishes a 47
security interest in real property. 48
(3) A contract, right of refusal, or any other instrument that purports to establish 49
an interest, encumbrance, claim, or right relating to real property. 50 General Assembly Of North Carolina Session 2025
DRS35163-NO-45A Page 3
(b) The actual owner of an interest in real property subject to a recorded false, fictitious, 1
or fraudulent instrument may seek expedited relief under this section by filing an action in district 2
court alleging the filing or recording of a false, fictitious, or fraudulent instrument in a public 3
record or a private record generally available to the public. The notice shall be served and proof 4
of service shall be made in any manner provided by the Rules of Civil Procedure for service of 5
summons, including service by registered mail or certified mail, return receipt requested. After a 6
minimum of five days' notice in a manner prescribed in Rule 5 of the Rules of Civil Procedure 7
and opportunity to be heard to all persons claiming an ownership interest in the property, any 8
lienholder of record, including any person to whom a security instrument directs notice to be sent 9
and any person obligated to repay the indebtedness secured by the instrument, the court shall 10
convene a hearing. For purposes of the notice requirement in this subsection, the party seeking 11
relief may serve the person listed as grantor in the recorded purportedly false, fictitious, or 12
fraudulent instrument at the address listed in the instrument. If the court finds that there is no 13
statutory, contractual, or other merited legal justification for the instrument, the court shall find 14
that the recorded instrument is false and is void as a matter of law and shall enter an order to 15
remove the cloud from the title to the real property. The submission of an original instrument 16
demonstrating source of title, affidavit, or a lis pendens, notice of previous fraud, or other similar 17
instrument recorded by the actual owner of an interest in the real property shall be considered 18
evidence of fraudulent activity. The court may also include in the order any of the following 19
types of relief: 20
(1) Grant to a prevailing party possession of the real property and order the 21
ejectment of any party on the premises. 22
(2) Award attorneys' fees and other costs for the action to the prevailing party. 23
(3) Stay any proceedings involving the subject real property in which the property 24
owner or owners are not a party to. 25
(4) Upon a finding by the court that an action filed under this section is frivolous 26
or malicious, assess a civil penalty of not more than ten thousand dollars 27
($10,000), of which the clear proceeds assessed under this subdivision shall 28
be remitted to the Civil Penalty and Forfeiture Fund in accordance with 29
G.S. 115C-457.2. 30
(5) Upon a finding by the court that a party has presented for filing or recording 31
a false, fictitious, or fraudulent instrument as described in this section more 32
than once, enter a pre-filing injunction against the party. 33
(6) Enjoin a party from listing the real property for sale, lease, or any other similar 34
advertisement. 35
(c) Upon being presented with an order duly issued by a court of competent jurisdiction 36
of this State declaring that an instrument already recorded is false and void as a matter of law, 37
the register of deeds or clerk of superior court that received the recording shall record and 38
cross-index the court's order finding the instrument to be false. The register of deeds or clerk of 39
superior court may also conspicuously mark on the first page of the original record previously 40
recorded the following statement: "THE CLAIM ASSERTED IN THIS DOCUMENT IS FALSE 41
AND IS NOT PROVIDED FOR BY THE GENERAL LAWS OF THIS STATE. " 42
(d) In addition to any civil penalties provided for in this section, the presentation of an 43
instrument for recording with a register of deeds or a clerk of superior court that is determined to 44
be materially false, fictitious, or fraudulent shall constitute a violation of G.S. 75-1.1. 45
(e) The Administrative Office of the Courts shall develop a form for the expedited relief 46
filing established by this section and the clerk of superior court shall make the form available for 47
a petitioner. In addition to the requirements set forth in this section, the form shall include clear 48
language notifying the filing party that providing false information or statements is perjury 49
pursuant to G.S. 14-209 and punishable as a Class F felony." 50 General Assembly Of North Carolina Session 2025
Page 4 DRS35163-NO-45A
SECTION 3. Section 1 of this act becomes effective October 1, 2025, and applies to 1
instruments and documents presented for registration on or after that date. Section 2 of this act 2
becomes effective October 1, 2025, and applies to causes of action arising on or after that date. 3
The remainder of this act is effective when it becomes law. 4