North Carolina HB 360: Homeowner Protection Act.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 360

Short Title: Homeowner Protection Act. (Public)
Sponsors: Representatives Reives, Winslow, Schietzelt, and Rubin (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Judiciary 2, if favorable, Rules, Calendar, and Operations of the House
March 12, 2025
*H360-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO CREATE ADDITIONAL CRIMINAL PENALTIES FOR CERTAIN 2
FRAUDULENT INSTRUMENTS; TO ESTABLISH A FORM OF EXPEDITED RELIEF 3
FOR VICTIMS OF A FRAUDULENT INSTRUMENT; AND TO MODIFY STATUTES 4
AFFECTING THE RECORDING OF DEEDS AND OTHER INSTRUMENTS. 5
The General Assembly of North Carolina enacts: 6
SECTION 1. G.S. 14-122 reads as rewritten: 7
"§ 14-122. Forgery of deeds, wills and certain other instruments. 8
(a) General Fraud. – If any person, of his that person's own head and imagination, or by 9
false conspiracy or fraud with others, shall wittingly and falsely forge and make, or shall cause 10
or wittingly assent to the forging or making of, or shall show forth in evidence, knowing the same 11
to be forged, any deed, lease or will, or any bond, writing obligatory, bill of exchange, promissory 12
note, endorsement or assignment thereof; or any acquittance or receipt for money or goods; or 13
any receipt or release for any bond, note, bill or any other security for the payment of money; or 14
any order for the payment of money or delivery of goods, with intent, in any of said instances, to 15
defraud any person or corporation, and thereof shall be duly convicted, the person so offending 16
shall be punished as a Class H F felon. 17
(b) Residential Property Fraud. – In an instance where a violation of this section involves 18
the forgery of a deed, lease, will, lien, encumbrance, or other conveyance of an interest in real 19
property relating to residential property, the person so offending shall be punished as a Class D 20
felon. For the purposes of this subsection, the term "residential property" means real property 21
where an individual has resided for, consecutively or nonconsecutively, at least six months of a 22
period of 12 months immediately preceding the forgery." 23
SECTION 2. Article 4 of Chapter 47 of the General Statutes is amended by adding 24
a new section to read: 25
"§ 47-108.29. Fraudulent instruments. 26
(a) As used in this section, the following definitions apply: 27
(1) Instrument. – Any of the following: 28
a. A transfer of title to real property by deed or other instrument 29
transferring title to real property. 30
b. A deed of trust, mortgage, judgment, lien, encumbrance, financing 31
statement, affidavit, notice, memorandum, or any other instrument that 32
establishes a security interest in real property. 33

General Assembly Of North Carolina Session 2025
Page 2 House Bill 360-First Edition
c. A contract, right of refusal, or any other instrument that purports to 1
establish an interest, encumbrance, claim, or right relating to real 2
property. 3
(2) Suspicious instrument. – An instrument purporting to affect title to real 4
property described in an order to remove the cloud from the title to real 5
property entered pursuant to this section if both of the following conditions 6
are met: 7
a. The order to remove the cloud from the title to real property remains 8
in effect. 9
b. The grantor in the instrument is not the property owner or owners 10
identified in the order to remove the cloud from the title to real 11
property. 12
(b) The actual owner of an interest in real property subject to a recorded false, fictitious, 13
or fraudulent instrument may seek expedited relief under this section by filing an action in district 14
court alleging the filing or recording of a false, fictitious, or fraudulent instrument in a public 15
record or a private record generally available to the public. Upon receipt of a verified filing, the 16
clerk of superior court shall record, or cause to be recorded and indexed, a memorandum of 17
possible fraud in the records of the clerk of court or register of deeds where the alleged false, 18
fictitious, or fraudulent instrument was recorded. The notice shall be served and proof of service 19
shall be made in any manner provided by the Rules of Civil Procedure for service of summons, 20
including service by registered mail or certified mail, return receipt requested to all persons 21
claiming an ownership interest in the property, any lienholder of record, including any person to 22
whom a security instrument directs notice to be sent and any person obligated to repay the 23
indebtedness secured by the instrument. Once service has been made, the court shall convene a 24
hearing. For purposes of the notice requirement in this subsection, the party seeking relief may 25
serve the person listed as grantor in the recorded purportedly false, fictitious, or fraudulent 26
instrument at the address listed in the instrument. If the court finds tha