North Carolina HB 431: Preventing Deed Fraud.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 431

Short Title: Preventing Deed Fraud. (Public)
Sponsors: Representatives Liu, Stevens, Biggs, and Budd (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 19, 2025
*H431-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ALLOW THE REGISTER OF DEEDS TO REFUSE TO RECORD CERTAIN 2
SUSPICIOUS INSTRUMENTS, TO AUTHORIZE THE REGISTER OF DEEDS TO 3
REQUIRE NON-TRUSTED SUBMITTERS TO PRODUCE A GOVERNMENT-ISSUED 4
PHOTOGRAPHIC IDENTIFICATION CARD BEFORE RECORDING A DEED OR 5
CERTAIN OTHER INSTRUMENTS, TO REQUIRE THE REGISTER OF DEEDS TO 6
PROVIDE ACCESS TO A FRAUD DETECTION ALERT SYSTEM, TO REQUIRE A 7
STUDY OF ALTERNATIVE FRAUD DETECTION ALERT SYSTEMS, AND TO 8
PROVIDE FOR AN EXPEDITED CAUSE OF ACTION TO QUIET TITLE AFTER AN 9
ATTEMPTED FRAUDULENT CONVEYANCE. 10
The General Assembly of North Carolina enacts: 11
12
PART I. IDENTIFY VERIFICATION AND SUSPICIOUS INSTRUMENTS 13
SECTION 1. Article 2 of Chapter 161 of the General Statutes is amended by adding 14
a new section to read: 15
"§ 161-32. Identity verification and suspicious instruments. 16
(a) Definitions. – The following definitions apply in this section: 17
(1) Instrument. – Any document that purports to convey title to, or an interest in, 18
real property, such as a deed, deed of trust, or other similar document. 19
(2) Suspicious instrument. – An instrument submitted for registration for which 20
the register of deeds has found any of the following: 21
a. The name or information of an acknowledging officer who has 22
purported to acknowledge the instrument does not match the official 23
records for that acknowledging officer. 24
b. The instrument purports not to be subject to the laws of the United 25
States or the laws of this State. 26
c. The document does not conform to registration requirements 27
established by the laws of this State. 28
d. The instrument is materially false, fictitious, or fraudulent and has not 29
been submitted by a trusted submitter or an authorized representative 30
of a trusted submitter. 31
(3) Trusted submitter. – Includes all of the following: 32
a. A title insurance company as described in Article 26 of Chapter 28 of 33
the General Statutes. 34
b. An attorney licensed to practice in this State. 35

General Assembly Of North Carolina Session 2025
Page 2 House Bill 431-First Edition
c. A financial institution as defined in G.S. 53B-2. 1
(b) Identity Verification. – Notwithstanding any other provision to the contrary in this 2
Chapter, when an instrument is presented to the register of deeds for registration by an individual 3
who is not a trusted submitter or the authorized agent of a trusted submitter, the register of deeds 4
shall require the person presenting the instrument to produce a government-issued photographic 5
identification card as follows: 6
(1) If an individual who is not a trusted submitter or an authorized agent of a 7
trusted submitter presents an instrument to the register of deeds for registration 8
in person, the register of deeds shall require the individual to produce a 9
government-issued photographic identification card for inspection by the 10
register of deeds before registering the instrument. The register of deeds must 11
record the name and address of such person, as the information appears on the 12
identification card, in a record to be kept by the register of deeds, along with 13
the official records book and page number or instrument number of the 14
instrument registered in connection to the production of the identification 15
card. Such a record may not be made available for viewing on the register of 16
deeds' official public website but shall be made available for public inspection 17
and copying as required by the public records laws of this State. 18
(2) If an individual who is not a trusted submitter or an authorized agent of a 19
trusted submitter presents an instrument in the form of an electronic 20
document, as defined in G.S. 47-16.3(2), to the register of deeds, as provided 21
by Article 1A of Chapter 47 of the General Statutes, the register of deeds shall 22
require the individual to submit a photocopy of a government-issued 23
photographic identification card before registering the instrument. The 24
register of deeds must note on the photocopy of the identification card the 25
official records book and page number or instrument number assigned to the 26
instrument registered in connection to the submission of the photocopy of the 27
identification card and retain the photocopy of such identification card in a 28
record to be kept by the register of deeds. Such a record may not be made 29
available for viewing on the register of deeds' official public website but shall 30
be made available for public inspection and copying as required by the public 31
records laws of this State. Howev