A BILL TO BE ENTITLED
AN ACT TO penalize the filing of fraudulent deeds and conveyances AND TO PREVENT TITLE FRAUD BY AUTHORIZING THE REGISTER OF DEEDS TO REQUIRE THE PRODUCTION OF A GOVERNMENT‑ISSUED PHOTOGRAPHIC IDENTIFICATION CARD BEFORE RECORDING A DEED OR CERTAIN OTHER INSTRUMENTS; REQUIRING THE legislative research commission to study the feasibility of a statewide FRAUD DETECTION ALERT SYSTEM; PROVIDING FOR A separate CAUSE OF ACTION TO QUIET TITLE AFTER A FRAUDULENT CONVEYANCE; REQUIRING SOURCE OF TITLE TO BE REFLECTED ON DEED OR OTHER TITLE CONVEYANCE; AND REQUIRING TAX OFFICE CERTIFICATION OF LISTED OWNER AND DELINQUENT TAX STATUS ON COUNTY TAX RECORDS AND REAL ESTATE BROKER DISCIPLINE.
The General Assembly of North Carolina enacts:
SECTION 1.(a)  G.S. 14‑122 reads as rewritten:
"§ 14‑122.  Forgery of deeds, wills and certain other instruments; presentation for filing.
(a)	If any person, of that person's own head and imagination, or by false conspiracy or fraud with others, shall wittingly and falsely forge and make, or shall cause or wittingly assent to the forging or making of, or shall show forth in evidence, knowing the same to be forged, any deed, lease or will, or any bond, writing obligatory, bill of exchange, promissory note, endorsement or assignment thereof; or any acquittance or receipt for money or goods; or any receipt or release for any bond, note, bill or any other security for the payment of money; or any order for the payment of money or delivery of goods, with intent, in any of said instances, to defraud any person or corporation, and thereof shall be duly convicted, the person so offending is guilty of a Class H felony.
(b)	If any person presents a deed or other transfer of real property of an owner for filing or recording in a public record or a private record generally available to the public, knowing or having reason to know that the deed or conveyance is false or contains a materially false, fictitious, or fraudulent statement or representation, the person so offending is guilty of a Class H felony."
SECTION 1.(b)  G.S. 14‑117.8 reads as rewritten:
"§ 14‑117.8.  Fraudulently renting, leasing, or advertising for sale of residential real property.
(a)	Offense Involving Fraudulent Rental or Lease. – It is unlawful to rent or lease residential real property to another person knowing that the renter, tenant, lessee, landlord, or lessor has no lawful ownership in the property or leasehold interest in the property.
(b)	Offense Involving Fraudulent Advertising. – It is unlawful to list or advertise residential real property for sale knowing that the purported seller has no legal title or authority to sell the property.
(c)	Punishment. – Unless the conduct is covered under some other provision of law providing greater punishment, a person who violates this section shall be punished as follows:
(1)	A person who violates subsection (a) of this section is guilty of a Class H felony.
(2)	A person who violates subsection (b) of this section is guilty of a Class I felony.
(d)	In addition to any criminal penalties provided in this section, knowingly renting, leasing, listing, or advertising residential real property to another person knowing that the renter, tenant, lessee, lessor, landlord, or the person soliciting the listing or advertisement has no lawful ownership or leasehold interest in the property shall constitute a violation of G.S. 75‑1.1. In a civil suit initiated by a person who alleges that a person's violation of this section constitutes a violation of G.S. 75‑1.1, the presiding judge may allow a reasonable attorneys' fee in accordance with G.S. 75‑16.1 to the attorney representing the person bringing the suit without finding that there was an unwarranted refusal by the party charged with the violation to fully resolve the matter which constitutes the basis of the suit."
SECTION 1.(c)  G.S. 14‑209 reads as rewritten:
"§ 14‑209.  Punishment for perjury.
If any person knowingly and intentionally makes a false statement under oath or affirmation in any of the following, that person is guilty of perjury, and punished as a Class F felon:
(1)	A suit, controversy, matter or cause, or unsworn declaration deemed sufficient pursuant to G.S. 7A‑98 pending in any of the courts of the State.
(2)	A deposition or affidavit taken pursuant to law.
(3)	An oath or affirmation duly administered of or concerning any matter or thing where the person is lawfully required to be sworn or affirmed.
(4)	An instrument as defined in G.S. 161‑32 and presented to a register of deeds for registration."
SECTION 1.(d)  This section becomes effective December 1, 2025, and applies to offenses committed on or after that date.
SECTION 2.(a)  Article 2 of Chapter 161 of the General Statutes is amended by adding a new section to read:
"§ 161‑32.  Identity verification and suspicious instruments.
(a)	Definitions. – The following definitions apply in this section:
(1)	Government‑issued photographic identification card. – The term "government‑issued photographic identification card" means one of the following documents that is unexpired and includes the individual's photograph, name, and address:
a.	A United States passport.
b.	A United States military identification card.
c.	A tribal identification card issued by a tribe recognized by the federal government or the State of North Carolina.
d.	A North Carolina drivers license or non‑operator identification card.
e.	A North Carolina voter identification card.
f.	A drivers license issued by another state.
(2)	Instrument. – The term "instrument" shall include any of the following:
a.	A transfer of title to real property by deed or other instrument transferring title to real property.
b.	A deed of trust, mortgage, judgment, lien, encumbrance, financing statement, affidavit, notice, memorandum, or any other instrument that establishes a security interest in real property.
c.	A contract, right of refusal, lease, affidavit, memorandum, or any other instrument that purports to establish an interest, option, encumbrance, right, or any other claim relating to or interest in real property.
(3)	Suspicious instrument. – An instrument submitted for registration for which the register of deeds has found any of the following:
a.	The instrument purports not to be subject to the laws of the United States or the laws of this State.
b.	The instrument does not conform to registration requirements established by the laws of this State.
c.	The instrument is submitted by an individual who is not a trusted submitter and the identity verification requirements of this section are not met.
(4)	Trusted submitter. – Includes all of the following:
a.	A title insurance company as described in Article 26 of Chapter 28 of the General Statutes.
b.	An attorney licensed to practice in this State.
c.	A financial institution as defined in G.S. 53B‑2.
(b)	Identity Verification. – Notwithstanding any other provision to the contrary in this Chapter, when an instrument is presented to the register of deeds for registration by an individual who is not a trusted submitter, the register of deeds shall require the person presenting the instrument to produce identity verification as follows:
(1)	If an individual who is not a trusted submitter presents an instrument to the register of deeds for registration in person, the register of deeds shall require that individual to produce a government‑issued photographic identification card for inspection by the register of deeds before registering the instrument. The register of deeds must record the name, address, identification card number, and expiration date as the information appears on the identification card, in a record to be kept by the register of deeds, along with the official records book and page number or instrument number of the instrument registered in connection with the production of the identification card.
(2)	If an individual who is not a trusted submitter presents an instrument to the register of deeds by U.S. mail, overnight delivery, or other paid third‑party delivery service, the register of deeds shall require that individual to submit a photocopy of the individual's government‑issued photographic identification card before registering the instrument. The register of deeds must note on the photocopy of the identification card the official records book and page number or instrument number assigned to the instrument registered in connection to the submission of the photocopy of the identification card and retain the photocopy of the identification card in a record to be kept by the register of deeds. However, an individual who submits a photocopy of that individual's government‑issued photographic identification card under this subsection may redact from the photocopy of that identification card before submission all of the information the individual does not wish to be made public, except for the individual's name, address, photograph, identification card number, and expiration date.
(3)	If an individual who is not a trusted submitter presents an instrument in the form of an electronic document, as defined in G.S. 47‑16.3(2), to the register of deeds, as provided by Article 1A of Chapter 47 of the General Statutes, the register of deeds shall require the individual to submit a photocopy of that individual's government‑issued photographic identification card before registering the instrument. The register of deeds must note on the photocopy of the identification card the official records book and page number or instrument number assigned to the instrument registered in connection to the submission of the photocopy of the identification card and retain the photocopy of the identification card in a record to be kept by the register of deeds. However, an individual who submits a photocopy of the individual's government‑issued photographic identification card under this subsection may redact from the photocopy of that identification card before submission all of the information the individual does not wish to be made public, except for the individual's name, address, photograph, identification card number, and expiration date.
(4)	If the instrument is presented by an entity that is not a trusted submitter, the register of deeds shall require production of the following, as applicable:
a.	A corporation must produce a certificate of good standing and a secretary's certificate signed by an authorized officer of the corporation.
b.	A trust must produce a certification of trust.
c.	An estate must produce letters testamentary or letters of administration.
d.	A limited liability company must produce a resolution signed by its members.
e.	An unincorporated nonprofit association must present a sworn statement attesting to the authority of the person presenting the instrument to act on behalf of the association.
(5)	Records required to be kept by the register of deeds pursuant to this subsection are confidential and not public records pursuant to G.S. 132‑1 or any other applicable statute and shall not be disclosed other than pursuant to a court order entered by a district or superior court judge in the State or in response to a written request from a State or federal law enforcement agency for investigative or evidentiary purposes. Such written request may be in electronic format.
(c)	Refusing to Register. – Notwithstanding any other provision to the contrary in this Chapter, the register of deeds shall refuse to register an instrument if one of the following occurs:
(1)	The register of deeds deems the instrument presented for registration a suspicious instrument as defined in this section.
(2)	The individual presenting the instrument for registration is not a trusted submitter as defined in this section, and the name on the government‑issued photographic identification card presented by the individual pursuant to subsection (b) of this section does not match the name of the grantor or conveying party in the instrument presented for registration.
(d)	Additional Actions for Suspicious Instruments. – Upon finding that an instrument presented for registration is a suspicious instrument as defined in this section, the register of deeds may report the suspicious instrument to an appropriate law enforcement agency.
(e)	Notice of Requirements. – The register of deeds shall provide notice of the identity verification requirement described in subsection (b) of this section on the register of deeds' official public website.
(f)	Legal Protections and Remedies. – There is no right or cause of action against, and no civil liability on the part of the register of deeds or the county with respect to the register of deeds' requirement of a government‑issued photographic identification card, or any refusal to register an instrument as allowed by subsections (b) and (c) of this section.
(g)	Confidentiality. – Nothing in this section shall be construed to require the register of deeds to provide or allow access to a record or other information that is considered confidential information as defined by G.S. 132‑1.2."
SECTION 2.(b)  This section becomes effective October 1, 2025, and applies to instruments presented for registration on or after that date.
SECTION 3.(a)  The Legislative Research Commission (LRC) shall study the feasibility of creating a fraud detection alert system where everyone who submits an instrument as defined in G.S. 161‑32, as enacted by this act, for registration is automatically enrolled in the fraud detection alert system without paying a fee. Before enrollment, the register of deeds would provide each individual with a notice explaining the system, including its purpose, how it works, and how to opt out of enrollment.
As part of its study, the LRC shall do all of the following:
(1)	Evaluate the practicality of implementing a fraud detection alert system with automatic enrollment and an opt‑out option, including technological and staffing requirements for registers of deeds across all counties.
(2)	Examine the fiscal impact on the State, counties, and/or registers of deeds, including costs associated with developing, maintaining, and operating a fraud detection alert system without charging a fee to the participant.
(3)	Evaluate how well the fraud detection alert system described in this section would prevent fraud as compared to other potential systems or measures.
SECTION 3.(b)  The LRC shall report its findings, together with any proposed legislation, to the 2026 Regular Session of the 2025 General Assembly upon its convening.
SECTION 4.(a)  Article 1 of Chapter 41 of the General Statutes is amended by adding a new section to read:
"§ 41‑10.2.  Fraudulent instrument procedure.
(a)	As used in this section, the term "instrument" means any of the following:
(1)	A transfer of title to real property by deed or other instrument transferring title to real property.
(2)	A deed of trust, mortgage, judgment, lien, encumbrance, financing statement, affidavit, notice, memorandum, or any other instrument that establishes a security interest in real property.
(3)	A contract, right of refusal, lease, affidavit, memorandum, or any other instrument that purports to establish an interest, option, encumbrance, right, or any other claim relating to or interest in real property.
(b)	The district court division of the General Court of Justice shall have original jurisdiction over actions instituted under this section. If a party appeals the district court's decision, the appeal shall be to the North Carolina Court of Appeals. The notice of appeal must contain a verified explanation as to why the order entered is legally or factually incorrect.
(b1)	The actual owner of an interest in real property may file a civil action in the district court located in the county in which the property is located by filing a verified complaint alleging the recording of a false, fictitious, or fraudulent instrument in a public record or private record generally available to the public and related to the parcel or parcels owned by the plaintiff. Relief available includes a request for ex parte relief, including entry of a temporary restraining order, entry of any other temporary or permanent orders necessary to protect the plaintiff's ownership of or interest in the parcel of real property or to clear any color of title related to the parcel of land on the public record, and a request for attorneys' fees and costs. Upon the filing of an action under this section, the plaintiff shall also file a notice of lis pendens.
(b2)	Any party served with the verified complaint may file and serve a verified responsive pleading within 10 days after service of the complaint. The parties served with a copy of the verified complaint shall not be entitled to an extension of time for filing and serving a responsive pleading, except for compelling and extraordinary reasons.
(b3)	The verified complaint shall be served on any person purportedly having conveyed or having been conveyed an interest in the real property by the recorded instrument alleged to be false, fictitious, or fraudulent, and also upon any other persons claiming an ownership interest in the property, including lienholders of record, any person to whom a security instrument directs notice to be sent, and any person obligated to repay the indebtedness secured by the instrument.
(b4)	Service of the summons, verified complaint, and notice of lis pendens shall be made pursuant to Rule 4 of the North Carolina Rules of Civil Procedure, except as otherwise provided for in this subsection. Subsequent service of notices or other required pleadings shall be made pursuant to Rule 5 of the North Carolina Rules of Civil Procedure. Service on any of the following parties under either Rule shall be sufficient if made to that party's address as reflected on the face of the suspicious instrument, the tax bill for the parcel, the government‑issued photographic identification card provided at the time of recording, or any other address the party has provided the court:
(1)	The party presenting the alleged false, fictitious, or fraudulent instrument for recordation.
(2)	The party conveying any interest in the real property through the alleged false, fictitious, or fraudulent instrument.
(3)	The party receiving any interest in the real property through the alleged false, fictitious, or fraudulent instrument.
If personal service of the complaint and summons on any party in subdivision (1), (2), or (3) of this subsection was attempted by the sheriff but was unable to be obtained, the sheriff may serve the individual or entity by posting the paperwork on the door of the property that is subject to the alleged false, fictitious, or fraudulent instrument.
(b5)	If an ex parte or temporary hearing is requested, upon the submission of a sworn statement and evidence supporting the allegation of the recordation of a false, fictitious, or fraudulent instrument, an ex parte or temporary order enjoining any party from selling, leasing, listing the property for sale or lease, or otherwise taking any further action impacting the title to the parcel may be entered.
(b6)	If an ex parte hearing is requested, it must be scheduled no later than 24 hours after the complaint is filed. If a temporary hearing is requested, the temporary hearing must be scheduled within 10 days of filing the complaint. The permanent hearing must be scheduled within 30 days of filing the complaint. All hearings under this section shall have priority on the court's calendar.
(b7)	A return hearing on an ex parte order must be scheduled within 10 days of entry of the ex parte order and the ex parte order shall remain in effect until the return hearing is held. A temporary order entered under this section shall remain in effect until the entry of a permanent order.
(b8)	The chief district court judge may authorize a magistrate or magistrates to hear any motions for emergency relief ex parte under this section.
(b9)	The court shall not grant a continuance of any hearing, nor shall it stay the civil proceedings pending the disposition of any related criminal proceedings, except for compelling and extraordinary reasons or on application of the district attorney for good cause shown. No continuance shall be granted for a period greater than 10 days.
(b10)	If, after all parties have an opportunity to be heard, the court finds that there is no statutory, contractual, or other legal basis for the recording, the court shall enter a permanent order finding that the recorded instrument is false and is void as a matter of law.
(b11)	The court may also include in any order any of the following types of relief:
(1)	Grant to a prevailing party possession of the real property and order the ejectment of any party on the premises.
(2)	Award to the prevailing party attorneys' fees and other costs for the action.
(3)	Stay any proceedings involving the subject real property in which the property owner is not a party to.
(4)	Upon a finding by the court that an action filed under this section is frivolous or malicious, assess a civil penalty of not more than ten thousand dollars ($10,000), of which the clear proceeds assessed under this subdivision shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C‑457.2.
(5)	Upon a finding by the court that a party has presented for filing or recording a false, fictitious, or fraudulent instrument as described in this section more than once, enter a permanent injunction against the party requiring the individual to obtain an order from the court allowing recording of any instrument with any register of deeds' office in the State.
(6)	Enjoin a party from listing the real property for sale, lease, or any other similar advertisement.
(7)	Impose sanctions against the party or the party's attorney pursuant to Rule 11 of the North Carolina Rules of Civil Procedure.
(8)	Order execution of any additional instruments necessary or required to clear the title to the property pursuant to Rule 70 of the North Carolina Rules of Civil Procedure.
(9)	Any other relief the court determines is just and proper.
(c)	Upon being presented with a certified copy of a permanent order entered by a district court of this State declaring that a recorded instrument is false and void as a matter of law, the register of deeds that received the false recording shall record and cross‑index the order and shall, in addition to recording the court's order, also conspicuously mark on the first page of the previously recorded instrument the following statement: "THE CLAIM ASSERTED IN THIS DOCUMENT IS FALSE AND IS NOT PROVIDED FOR BY THE GENERAL LAWS OF THIS STATE." An order presented for recording pursuant to this section shall be recorded and cross‑indexed by the register of deeds as a subsequent instrument under G.S. 161‑14.1, and no fee authorized under G.S. 161‑10, or otherwise, shall be charged.
(d)	In addition to any criminal penalties or other civil remedies provided by law, the presentation of an instrument for recording with a register of deeds that is determined to be materially false, fictitious, or fraudulent shall constitute a violation of G.S. 75‑1.1.
(e)	In addition to any other civil or criminal penalties, a person who initiates an action under this section knowing that the subject instrument is not false, fictitious, or fraudulent is guilty of a Class G felony.
(f)	Unless otherwise provided for in this section, G.S. 1A‑1, the Rules of Civil Procedure, shall apply to all actions brought pursuant to this section."
SECTION 4.(b)  This section becomes effective October 1, 2025, and applies to causes of action filed on or after that date and to offenses committed on or after that date.
SECTION 5.(a)  The Administrative Office of the Courts shall develop a form complaint for the fraudulent instrument procedure established by Section 4 of this act and have the forms available on its website no later than October 1, 2025. In addition to the requirements set forth in this section and Section 4 of this act, the form shall include clear language notifying the filing party that providing false information or statements is perjury pursuant to G.S. 14‑209 and punishable as a Class F felony.
SECTION 5.(b)  The Administrative Office of the Courts shall develop a form lis pendens for filing as established by Section 4 of this act and have the form available on its website no later than October 1, 2025.
SECTION 6.(a)  Article 4 of Chapter 47 of the General Statutes is amended by adding a new section to read:
"§ 47‑108.30.  No presumption of priority for certain recorded instruments.
An instrument as defined in G.S. 161‑32 shall not have a presumption of priority based upon the time of registration and shall not constitute constructive notice or color of title if any of the following apply:
(1)	The instrument does not comply with the provisions of G.S. 47‑18, 47‑20, 47‑118, 47‑119, 47‑119.1, or 47‑120, as applicable.
(2)	The instrument does not contain a signature and acknowledgement duly acknowledged before an officer authorized to perform acknowledgements as required for recording of at least one record owner at the time the conveyance is made."
SECTION 6.(b)  Article 2 of Chapter 47 of the General Statutes is amended by adding a new section to read:
"§ 47‑18.4.  Source of title required for registration.
Notwithstanding any other provision to the contrary in this Chapter, all deeds or other conveyances of title (other than by court order) presented for registration must include a source of title to the grantor. Source of title may include the prior deed transferring title to the current grantor by reference to the book and page and the name of the grantee identified in that document, a duly probated will and estate file number with the clerk of superior court, recital of the chain of inheritance in the case of intestate succession, or a court order and court file number vesting title in the grantor. If a deed or other conveyance of title (other than a court order) is submitted for registration by anyone other than a "trusted submitter" as defined in G.S. 161‑32, the register of deeds shall not accept the conveyance for registration unless the identity verification requirements of G.S. 161‑32 are met and one of the following applies:
(1)	The submitter provides a certified copy of the latest county tax listing or bill reflecting the owner on the certified tax listing matches the grantor in the document presented for registration.
(2)	The county officer who manages tax listings certifies that the grantor on the document presented for registration is consistent with the owner reflected on the tax listing for the real property.
(3)	In the event of a material inconsistency in the grantor's identity reflected on the document presented for registration and the county tax records, the document presented for registration shall not be recorded until legal verification of the source of title of the grantor reflected on the document presented for registration has been provided by one of the following methods:
a.	The county officer who manages tax listings determines that the grantor reflected in the document presented for registration should be included as an owner in the tax listing for the real property.
b.	A North Carolina licensed attorney provides a title certification of the grantor listed in the document presented for registration."
SECTION 6.(c)  This section becomes effective October 1, 2025, and applies to deeds or other conveyances of title, other than by court order, presented for registration on or after that date.
SECTION 7.(a)  G.S. 161‑31 reads as rewritten:
"§ 161‑31.  Tax certification.
(a)	Tax Certification. – The register of deeds shall not accept any deed transferring real property for registration unless the county tax collector has certified the name of all owners of the parcel listed in the tax records and that no delinquent ad valorem county taxes, ad valorem municipal taxes, or other taxes with which the collector is charged are a lien on the property described in the deed.
(a1)	Exception to Tax Certification. – The register of deeds shall accept without certification a deed submitted for registration by a trusted submitter as defined in G.S. 161‑32 containing this statement on the deed: "This instrument prepared by: ________, a licensed North Carolina attorney. As closing attorney, I certify that delinquent and current taxes owed, if any, will be paid by my office to the county tax collector upon disbursement of closing proceeds."
	"
SECTION 7.(b)  This section becomes effective October 1, 2025, and applies to deeds or other conveyances of title, other than by court order, presented for registration on or after that date.
SECTION 7.2.  Article 1 of Chapter 93A of the General Statutes is amended by adding a new section to read:
"§ 93A‑6.3.  Disciplinary action for fraudulent deed activity; emergency suspension.
(a)	Any licensed real estate broker who is found to have participated in the preparation, execution, or filing of a fraudulent deed shall be deemed to have acted outside the scope of their licensure and shall be considered an unauthorized individual for the purposes of that transaction. Upon such a finding, the North Carolina Real Estate Commission shall initiate disciplinary action, including the suspension or revocation of the individual's license.
(b)	The Commission may impose a temporary suspension of a license without a prior hearing if it determines that the available evidence demonstrates that such emergency action is required to protect the public interest, safety, or welfare. In such cases, proceedings for a formal hearing must be instituted simultaneously with the suspension, and a hearing shall be commenced within 30 days from the effective date of the suspension.
(c)	The licensee may request a continuance of the hearing; however, the temporary suspension shall remain in effect during the period of continuance. All proceedings shall be conducted and concluded without undue delay."
SECTION 8.  Except as otherwise provided, this act is effective when it becomes law.