February Update from the Real Property Section Chair

By Christina Freeman Pearsall

Dear Real Property Section:

The Real Property Section Council continues to work diligently on behalf of the section. Below is a summary of those efforts, as reported in our last Council meeting on February 8, 2022.

Return to the Vault Program

I, personally, am very excited about this new section program. The purpose of the program is to bring the section membership together via Zoom on a regular basis, recognizing that few of us go to “the vault” to search titles anymore and have lost that sense of community the more senior members of the section once had. We would like to bring that sense of community back, especially considering the social distancing and remote meeting requirements we’ve dealt with in the past two years. The meetings will have a stated purpose, usually educational (but no CLE credit will be sought), but sometimes maybe just for fun. We plan to have presentations roughly every month. We’ll skip May 2022 since we will have our Annual Meeting then. We may also skip summer months since many members take vacations then. We will seek sponsors to support the programming, so please consider being a sponsor.  Please also share program ideas with Matt Waters and/or me. A committee is being formed to plan these programs and Matt Waters will chair it.

Save the date: Our first Return to the Vault presentation will be on March 8, 2022 at noon. It is entitled “State of the Section” and will provide an introduction to Section Council members and updates on what the Section Council has been up to as of that date. There will be prizes, so you won’t want to miss it!  Thanks to Chicago Title for being our first sponsor!

Nominating Committee

It’s that time of year again. Immediate Past Chair, Brian Byrd, is seeking section members to serve as Council members. The term is for a period of 3 years. The Council seeks to maintain a balance between large, medium and small firms and solo practitioners and also geographic diversity. If you or someone you know is interested in joining the Council, please contact Brian Byrd.

Legislative Matters

NC Land Records Advisory Committee and Task Force

The last meeting was on February 7, 2022, at which the North Carolina and Virginia boundary commission and 2022 aerial photography schedule were discussed. The next meeting will be on May 3, 2022.

General Statutes Commission (GSC)

The GSC met on February 4, 2022. The following proposals from the Real Property Section will be considered in the next meeting on March 4, 2022:

  1. NCGS §47-18.1
    1. Title change to conform to statutory provisions
    2. Statutory provisions
  2. NCGS §47-119 and 119.1, clarifying the parties who must sign memoranda, especially the vested title holder, in order to have priority under G.S. 47-28. This suggestion was in response to increasing occurrences of potential purchasers recording documents without notarization by the seller, and the need for consumer protection. Several cases have been referred to the NC Attorney General’s Consumer Protection.

The proposal concerning NCGS 41-63(4) was deferred for discussion among the Family Law, Estate Planning and Real Property Sections.

In addition, the GSC has opened a technical corrections docket for 2022 that includes the following:

  • NCGS §47F-1-102 and §47F-3-116, which has been approved by Section leadership.
  • Chapter 160D correcting cross-references.

The Commission is considering several uniform acts from the Uniform Laws Commission.  Of interest to the Section are the following:

  • The Uniform Community Property Disposition at Death Act,
  • The Uniform Personal Data Protection Act, and
  • The Uniform Relocation of Easement Act.

Marketable Title Act/Condo Curative

Matt Waters and Nancy Ferguson reported that Senate Bill 336 is still in Conference Committee.

Legislative Advisory Committee (LAC)

Devon Karst Barnhardt, Government Affairs Manager of the Bar Association, reported that any proposals for LAC vote should be submitted to her by March 17, 2022, for the March 24, 2022, Executive Committee meeting.

Permanent Remote Online Notarization (RON; HB 776)

Jason Peltz reported that House Bill 776 remains in Conference Committee. The provisions included in the version of House Bill 776 that passed the House 107-1, is the closest version to what the stakeholders, which include the section, want to see passed; however, changes made by the Senate were not approved by the stakeholder group. The Council voted and resolved to allow the RON subcommittee to submit a letter to the Legislature in support of House Bill 776. Devon Karst Barnhardt advised that it was unlikely the Legislature would consider this bill in the current session.

Please note that the Emergency Video Notary bill expired on December 31, 2021, and has not been extended.

Mobile Home Lien Release Revisions

Nancy Ferguson reported that the curative statue for removing liens from manufactured home titles had passed and the required forms were published, though with some inconsistencies from the statutory requirement.

Discriminatory Covenants

Nancy Ferguson reported that the Uniform Laws Commission has opened a docket on this matter.

Redaction of Judicial and Law Enforcement Officer Records

Nancy Ferguson reported that the Uniform Laws Commission has opened a docket on this matter, as well.

Transfer on Death Deeds

Devon Karst Barnhardt reported that there is currently no active legislation being considered concerning transfer on death deeds.

North Carolina Secretary of State Liaison

Lindsay Parris Thompson is serving as the first liaison between the Council and the North Carolina Secretary of State. She reported that the Secretary is interested in providing a presentation to the Council or in a CLE.  The Secretary’s priorities currently include:

  • Extension of the Emergency Video Notarization legislation.
  • Implementation of the Corporate Transparency Act, which includes significant mandates without resources to enforce them.
  • Assumed Business Name renewals for pre-2017 Assumed Name filings, which expire this year.

Consumer Protection Committee

Peter Moeller and Kyle Smalling reported on several consumer protection matters that have been brought to their attention. They encourage real property practitioners to continue reporting concerns as they arise. They noted that the State Bar’s Authorized Practice Committee was held on January 18, 2022, and the next meeting will be April 19-22, 2022.

CLE

Jennifer Hall reported on the upcoming CLE presentation plans.

CLE Date / Location Planners
Hot Topics Feb. 18, 2022 Hannah Combs – Wyrick Robbins

Max Isaacson – Long Leaf Partners
Annual Meeting May 20-21, 2022 Renaissance, Asheville Randall Faircloth and Will Kirk from Regent Law in Charlotte

Suggestions for topics, planners and speakers for upcoming CLE’s are welcome. Note that the October CLE will be the advanced real property/specialization program.

Ethics

Tessa Leftwich reported that 2021 Formal Ethics Opinion 3, Charging Fees to Separately Represented Party in Residential Real Estate Closing, was formally adopted at the January 21, 2022, meeting of the State Bar Ethics Committee.

Joint Forms

Bob Ramseur reported that the Joint Forms committee has quite a few changes, primarily organizational, to finalize for adoption in June. At their last meeting, they decided that it was in the best interests of consumers that the contract for a new building should give a one-year termite warranty as a seller requirement, as required by FHA.

Pro Bono

Barrett McFatter reported that the Housing Stability project would probably end in March.

He is still working with Land Loss Prevention Project for a couple of cases. If it goes well, he will provide a presentation to the section as an opportunity for an approved Pro Bono project with Land Loss – specifically with regard to heir property issues.

NCLTA Liaison

Sharon Schlachter reported that the NCLTA 2022 convention will be at the Embassy Suites Wilmington Riverfront on September 22-24, 2022.

Paralegal Division Liaison

Amanda Miller reported that the Paralegal Division Council met via Zoon on November 19, 2021. Their ongoing focus will be on CPE for limited licensing, diversity and inclusion and pro bono projects. The Annual Meeting will be on May 5, 2022; whether in person or virtual is still to be decided.

Next Council Meeting

May 19, 2022 @ 2 p.m. Asheville Renaissance – Annual Meeting

I will close again with the call for volunteers. We have several opportunities and a need for expertise in a number of areas. We have truly excellent lawyers serving on Council and committees but there is always a need for more. We also have new positions on Council opening up as of the new fiscal year. Please reach out to Brian Byrd if you are interested in serving or if you know of someone you could recommend. Please reach out to a committee chair if you wish to become involved with a committee or to me if there is anything the section can do to improve your real property practice.

Thank you for your consideration and don’t forget to attend our first Return to the Vault program!  I can’t wait to see you there.

Christina Freeman Pearsall serves as the NCBA Real Property Section Chair.

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