CHICAGO TITLE 2017 Keys from the Castle: Tools for Real Estate Paralegals Legislative Summary 2017 N.C. General Assembly 2017 General Assembly Long Session • Opened January 11, 2017 • Adjourned 2:00 a.m., June 30, 2017 • Adjournment Resolution • Added two additional sessions: • August 3, 2017 • September 6, 2017 • Later session moved to October 3, 2017 • Imposed final deadline of November 15 for court ‐ ordered redistricting maps subject to judicial ruling. 2017 General Assembly • Short Session to reconvene on Wednesday, May 16, 2018 1
Senate Bill 131, Regulatory Reform Act of 2016 ‐ 2017 • Streamlines certain mortgage notice requirements regarding the assessment of fees by lenders and servicers • Subdivision Approval Changes (effective July 1, 2017) • Eliminates subdivision approval requirements for division of a tract into parcels in accordance with the terms of a probated will or intestate succession (not a “subdivision”). • A City or County may require that only a plat be recorded for the division of land (no subdivision approval required) if: • Not already exempt (over 10 acres) • Hasn’t been divided in the prior 10 years • Entire original tract is greater than 5 acres • After division: No more than 3 lots result • Lot size dimensions comply with zoning regulations • Lot use complies with zoning regulations • A permanent means of access is recorded for each lot • Senate Bill 131, Regulatory Reform Act of 2016 ‐ 2017 (continued) • Amends Two (2) Statutes of Limitations: Five years • 5 ‐ year statute of limitations against the owner of real property by a unit of local government for a violation of a land ‐ use statute (zoning regulation). • Limitation period begins upon the earlier of: • The violation becomes known to the unit of local government • The violation can be determined from the public record of the unit of local government Senate Bill 131, Regulatory Reform Act of 2016 ‐ 2017 (continued) Seven years • 7 ‐ year Statute of Limitations against the owner of real property by a unit of local government for a violation of a land ‐ use statute upon the earlier occurrence of the following: • The violation is apparent from a public right ‐ of ‐ way • The violation is in plain view from a place to which the public is invited. 2
Senate Bill 131, Regulatory Reform Act of 2016 ‐ 2017 (continued) • Reduced statutes of limitations do not limit the remedy of injunction for conditions that are actually injurious or dangerous to public health or safety. • Effective October 1, 2018. Senate Bill 569, Adopt Uniform Power of Attorney Act • Adopts the Uniform Power of Attorney Act in North Carolina • Power of Attorney is durable unless it expressly provides that it terminates upon the incapacity of the principal. • Does not apply to Health Care Powers of Attorney. • Unless the Power of Attorney otherwise provides, language in a Power of Attorney granting general authority with respect to real property authorizes the Attorney ‐ in ‐ fact to buy, sell, pledge, release, manage, develop real property (Act contains ten specific items). • With respect to any real property owned or claimed to be owned by the principal’s spouse in which the principal’s only interest is a marital interest, the Attorney ‐ in ‐ fact may waive, release or subordinate the principal’s inchoate right pursuant to G.S. 29 ‐ 30 to claim an elective life estate in the real property regardless of whether the waiver or release or subordination will benefit the Attorney ‐ in ‐ fact or a person to whom there is owed an obligation of support. • Effective January 1, 2018. • Does not affect rules regarding gifting of property pursuant to a Power of Attorney. House Bill 205 – Publication of Legal Notices • Modernizes requirements for the publication of legal advertisements and notices (Notice to Creditors, Notice of Foreclosure Sale, etc.) by allowing legal notices to be posted in certain statewide publications that meet certain requirements. • And allows Guilford County and any municipality in Guilford County to use electronic means to provide public notice in lieu of publication (Requests for Proposals and other governmental board ‐ required notices) to be posted on the county website for a fee. 3
House Bill 205 – Publication of Legal Notices (continued) • And, in lieu of publishing notices (again, Notice of Foreclosure Sale, Notice to Creditors, Service of Process by Publication, etc.) in a newspaper, publication of notices permitted or required by law to be published in a newspaper may be accomplished by publishing such notice on the county ‐ maintained Web site. • Applies to Guilford County only. • The county has to have adopted an ordinance under N.C.G.S. §153A ‐ 458 to allow for the publishing of notices on the county ‐ maintained website. • This bill was vetoed and, as of the date of the writing of this manuscript, the veto had not been overridden. House Bill 229, Technical Corrections 2017 Tenancy by the Entirety • Includes a provision directed at the Tenancy by the Entirety issue raised by the recognition of same sex marriages. • The bill adds two new definitions in N.C.G.S §12 ‐ 3: • The words “husband and wife,” “wife and husband,” “man and wife,” “woman and husband,” “husband or wife,” “wife or husband,” “man or wife,” “woman or husband” or other terms suggesting two individuals who are then lawfully married to each other shall be construed to include any two individuals who are then lawfully married to each other. • The terms “Widow” and “Widower” mean the surviving spouse of a deceased individual. House Bill 229, Technical Corrections 2017 (continued) • Affects our existing Tenancy by the Entirety statute: • N.C.G.S. §39 ‐ 13.6(b): (b) A conveyance of real property, or any interest therein, to a husband and wife vests title in them as tenants by the entirety when the conveyance is to: (1) A named man “and wife,” or (2) A named woman “and husband,” or (3) Two named persons, whether or not identified in the conveyance as husband and wife if at the time of conveyance they are legally married; • Unless a contrary intention is expressed in the conveyance. 4
House Bill 454, Survey and Plat Recording Changes • The bill provides that the information required by N.C.G.S §47 ‐ 30(c) shall be listed prominently on the plat and the information listed in the notes contained on a plat does not satisfy that requirement. The presence of the signature and seal of a professional land surveyor shall constitute a certification that the map conforms to the standards of practice for land surveying in this State. House Bill 454, Survey and Plat Recording Changes OLD: (c) Information Contained in Title of Plat. - The title of each plat shall contain the following information: property designation, name of owner (the name of owner shall be shown for indexing purposes only and is not to be construed as title certification), location to include township, county and state, the date or dates the survey was made; scale or scale ratio in words or figures and bar graph; name and address of surveyor or firm preparing the plat. House Bill 454, Survey and Plat Recording Changes NEW: (c) Information Contained in Title of Plat. – The title of each plat shall contain the following information: (1) The property designation. (2) The name of the owner; provided, however, that the name of owner shall be shown for indexing purposes only and is not to be construed as title certification. (3) The location, to include county and State, and the township or city, if applicable. (4) The date or dates the survey was made. 5
House Bill 454, Survey and Plat Recording Changes (5) The scale or scale ratio in words or figures and bar graph. (6) The name and address of surveyor preparing the plat, including the firm name and firm license number, if applicable. (7) The dates and descriptions of revisions made after original signing. The information required pursuant to this subsection shall be listed prominently on the plat. Information listed in the notes contained on the plat does not satisfy the requirements of this subsection. • Effective July 1, 2017 and applies to plats submitted for recording on or after that date. House Bill 454, Survey and Plat Recording Changes (continued) • Change to the “stamp” on maps attached to deeds. • N.C.G.S. §47 ‐ 30(n): • A map that does not meet the requirements of subsection (m) of this section may be attached to a deed or other instrument submitted for recording in that form for illustrative purposes only if it meets both of the following requirements: (1) It is no larger that 8 ½ by 14 inches. (2) It is conspicuously labelled, “THIS MAP MAY NOT BE A CERTIFIED SURVEY AND HAS NOT BEEN REVIEWED BY A LOCAL GOVERNMENT AGENCY FOR COMPLIANCE WITH ANY APPLICABLE LAND DEVELOPMENT REGULATIONS AND HAS NOT BEEN REVIEWED FOR COMPLIANCE WITH RECORDING REQUIREMENTS FOR PLATS.” (Wording of stamp revised from existing statute: "THIS MAP IS NOT A CERTIFIED SURVEY AND HAS NOT BEEN REVIEWED BY A LOCAL GOVERNMENT AGENCY FOR COMPLIANCE WITH ANY APPLICABLE LAND DEVELOPMENT REGULATIONS.“) • Effective July 1, 2017. House Bill 530 – Condemnation of Unsafe Buildings by Counties • Grants counties the same authority as cities to declare certain buildings unsafe and that a lien would be placed on the owner’s real property for costs incurred in removing or demolishing them. • Effective July 12, 2017. 6
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