North Carolina Clarifies Process for Correcting Nonmaterial and Descriptive Errors in Recorded Instruments of Title

North Carolina House Bill 584 serves to clarify the process for correcting nonmaterial errors in recorded instruments of title, creates a curative procedure for obvious description errors in documents of title, and creates a seven-year curative provision for certain defects in recorded instruments of title. The act is effective August 31, 2018, and applies to curative affidavits filed on or after that date.

Notice of a nonmaterial typographical or other minor error in a deed or other recorded instrument may now be given by recording a corrective notice affidavit. This act clarifies that, “an error that would affect the respective rights of any party to the instrument is not a nonmaterial typographical or minor error.”

Obvious description errors in a recorded instrument affecting title to real property may now be cured by recording a curative affidavit with the register of deeds in every county where the real property is situated.

Prior to recording a curative affidavit, the authorized attorney seeking to record the affidavit shall serve a notice of intent and a copy of the unsigned proposed curative affidavit to:

  1. All parties to the instrument that is the subject of the curative affidavit.
  2. Any current record mortgagee, record beneficiary, record assignee, or record secured party in any mortgage, deed of trust, assignment of leases, rents or profits, UCC fixture filing, or other recorded instrument of title that may be adversely affected by the recording of the curative affidavit.
  3. The current record owner of the real property.
  4. The attorney who prepared the instrument that is the subject of the curative affidavit, if known.
  5. Any title insurance company, if applicable and known, and title insurance agent, if applicable and known, that (i) issued a policy of title insurance covering the subject property in the transaction in which the error occurred or in any subsequent transaction or (ii) proposes to issue a policy of title insurance in reliance on the proposed curative affidavit.
  6. The current record owners of all adjoining properties that may be adversely affected by the recording of the curative affidavit, the current record holders of any mineral or timber rights that may be adversely affected by the recording of the curative affidavit, and the record holders of any easement rights that may be adversely affected by the recording of the curative affidavit.

Persons served with the notice of intent may object to the recordation of the proposed curative affidavit, in writing to the authorized attorney, within 30 days after the service of the documents upon that person.

The act provides a recommended form for the curative affidavit, and specifies that “no particular phrasing is required for the curative affidavit.”

Additionally, an instrument conveying or purporting to convey an interest in real property that contains a defect, irregularity, or omission shall be deemed effective to vest title as stated therein and to the same extent as though the instrument had not contained the material defect, irregularity, or omission, if both of the following conditions are met:

  1. The instrument is recorded by the register of deeds in the county or counties where the property is situated.
  2. The material defect, irregularity, or omission is not corrected within seven years after the instrument was recorded.

 

For the full text of North Carolina House Bill 584, please refer to:

Full Text

  • Regulatory Compliance Consultant
  • Lexington, MA
  • 781-402-6400

Ryan Peters, J.D. is a Regulatory Compliance Consultant at Bankers Advisory. He is a graduate of the University of Maine and earned his Juris Doctor at Suffolk University Law School.

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