Title: Understanding the Wake North Carolina Assignment of Deed of Trust by Individual Mortgage Holder Introduction: In Wake, North Carolina, an Assignment of Deed of Trust by Individual Mortgage Holder is a legal document that transfers the beneficial interest in a property from one lender to another. This process is crucial for tracking property ownership and facilitating mortgage transactions. This article aims to provide a detailed description of this assignment and shed light on its various types and implications. Keywords: Wake North Carolina, Assignment of Deed of Trust, individual mortgage holder, legal document, beneficial interest, property ownership, mortgage transactions 1. What is an Assignment of Deed of Trust? An Assignment of Deed of Trust is a legal instrument that formally transfers ownership of a mortgage loan from one lender (assignor) to another (assignee). It ensures that the assignee has the rights to the mortgage and can enforce payment of the debt if necessary. 2. Role and Importance of Individual Mortgage Holders: Individual mortgage holders play a crucial role in the Assignment of Deed of Trust process. They are private individuals who hold a mortgage on a property rather than financial institutions. These individual mortgage holders may choose to assign their deed of trust to another party, enabling them to transfer their interest and any associated rights to a new lender. 3. Types of Wake North Carolina Assignment of Deed of Trust: a. Assignment of Deed of Trust with Interrelated Promissory Note: This type of assignment is used when the promissory note, which represents the borrower's promise to repay the loan, is directly linked to the deed of trust. The assignee assumes both the rights to the deed of trust and the promissory note. b. Assignment of Deed of Trust without Interrelated Promissory Note: In some cases, the assignment may only include the transfer of the deed of trust without the linked promissory note. This type of assignment allows the assignee to take ownership of the mortgage but does not impact the underlying loan agreement. 4. Process and Legal Requirements: To initiate an Assignment of Deed of Trust by an individual mortgage holder in Wake, North Carolina, certain legal requirements must be met. These requirements typically include the creation of a written assignment document, signed by the assignor (individual mortgage holder) and recorded with the county registry office. Adhering to these procedures ensures the assignment's validity and puts all parties involved on notice. 5. Implications and Considerations: a. Transferring the beneficial interest in a property through an assignment affects the lender-borrower relationship and obligations. It is important for both parties to understand the terms and implications of the assignment. b. Assignees should conduct thorough due diligence on the property and borrower before accepting the assignment to determine its value and potential risks. c. Transparency and compliance with North Carolina state regulations are crucial during the assignment process to protect the rights and interests of all parties involved. Conclusion: The Wake North Carolina Assignment of Deed of Trust by Individual Mortgage Holder is a vital legal mechanism to manage mortgage ownership and facilitate property transactions. Familiarizing oneself with the types, requirements, and implications of these assignments is essential for individuals involved in property lending and the mortgage industry in Wake, North Carolina. Keywords: Wake North Carolina, Assignment of Deed of Trust, individual mortgage holder, legal document, beneficial interest, property ownership, mortgage transactions, types, process, implications, compliance.
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The lender and the borrower together designate who will act as the trustee; both parties must agree with the decision before finalizing the deed of trust. Lenders may use a trustee with whom they are acquainted, so long they are not affiliated. The trustee must also agree to the designation.
A deed of trust has a borrower, lender and a ?trustee.? The trustee is a neutral third party that holds the title to a property until the loan is completely paid off by the borrower. In most cases, the trustee is an escrow If you don't repay your loan, the escrow company's attorney must begin the foreclosure process.
Focusing on this geographical region, the Deed of Trust is the preferred or required security instrument for real property in the following states: Maryland, North Carolina, Tennessee, Virginia and West Virginia. Mortgages are used in Kentucky, Ohio and Pennsylvania.
Deeds of trust are the most common instrument used in the financing of real estate purchases in Alaska, Arizona, California, Colorado, the District of Columbia, Idaho, Maryland, Mississippi, Missouri, Montana, Nebraska, Nevada, North Carolina, Oregon, Tennessee, Texas, Utah, Virginia, Washington, and West Virginia,
The Trustee under the deed of trust is the person (or entity) with title to the real estate. The trustee is given the broad authority to cancel the lien upon verification that the debt has been paid.
Start Deed of Trust StateMortgage allowedDeed of trust allowedNorth CarolinaYNorth DakotaYOhioYOklahomaY47 more rows
North Carolina While both mortgages and deeds of trust are permitted, deeds of trust are most commonly used.
When your mortgage lender decides he wants to sell your mortgage loan to another lender, your mortgage lender will sign an assignment of deed of trust in favor of the new lender. This assignment gives the new lender the same lien on your property that your original lender had under the mortgage loan.
In North Carolina, the trustee named in a deed of trust holds legal title to the real property granted therein as security for the note obligation. Once the debt is paid off, the deed of trust is cancelled and title reverts to the borrower.
In North Carolina, a deed of trust or mortgage acts as a conveyance of the real estate. Upon repayment of the debt or performance of the obligation, the conveyance becomes void.
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Interesting Questions
Wake Assignment of Deed of Trust by Individual Mortgage Holder415362 is a legal document that transfers the rights of a mortgage held by an individual to another party or entity.
There can be various reasons for assigning a deed of trust, such as selling the property, transferring the mortgage to a new lender, or fulfilling contractual obligations.
In the assignment of deed of trust, the current mortgage-holder (individual) legally transfers their rights and interests in the mortgage to another party by signing a document known as the assignment of deed of trust.
After the assignment, the new party (assignee) becomes the new mortgage holder and assumes all the rights and responsibilities associated with the mortgage.
Typically, the terms of the mortgage agreement determine whether an individual can assign their deed of trust. It is essential to review the contract or consult legal advice to ensure compliance.
There may be fees or costs involved in the assignment process, such as recording fees, legal fees, or administrative charges. These can vary based on the location and specific circumstances.
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Assignments Generally:
Lenders, or holders of mortgages or deeds of trust, often assign mortgages or deeds of trust to other lenders, or third parties. When this is done the assignee (person who received the assignment) steps into the place of the original lender or assignor. To effectuate an assignment, the general rule is that the assignment must be in proper written format and recorded to provide notice of the assignment.
Satisfactions Generally:
Once a mortgage or deed of trust is paid, the holder of the mortgage is required to satisfy the mortgage or deed of trust of record to show that the mortgage or deed of trust is no longer a lien on the property. The general rule is that the satisfaction must be in proper written format and recorded to provide notice of the satisfaction. If the lender fails to record a satisfaction within set time limits, the lender may be responsible for damages set by statute for failure to timely cancel the lien. Depending on your state, a satisfaction may be called a Satisfaction, Cancellation, or Reconveyance. Some states still recognize marginal satisfaction but this is slowly being phased out. A marginal satisfaction is where the holder of the mortgage physically goes to the recording office and enters a satisfaction on the face of the the recorded mortgage, which is attested by the clerk.
North Carolina Law
Assignment:
An assignment must be in writing and recorded.
Demand to Satisfy:
A petitioner may recover damages under this section only if he has given the mortgagee, obligee, beneficiary or other responsible party written notice of his intention to bring an action pursuant to this section. Upon receipt of this notice, the mortgagee, obligee, beneficiary or other responsible party shall have 30 days, in addition to the initial 60-day period, to fulfill the requirements of this section. See code section 45-36.3(2)(b), below.
Recording Satisfaction:
Upon full payoff, within 60 days the lender must either forward the satisfaction document to the borrower, or have the satisfaction recorded of record. See, 45-36.3, below.
Marginal Satisfaction:
A marginal satisfaction may be done in addition to recording the satisfaction document. See 45-37, below.
Penalty:
Any person, institution or agent who fails to comply with this section may be required to pay a civil penalty of not more than one thousand dollars ($1,000) in addition to reasonable attorneys' fees and any other damages awarded by the court to the grantor, trustor or mortgagor, or to a subsequent purchaser of the property from the grantor, trustor or mortgagor. See code section 45-36.3(2)(b) below.
Acknowledgment:
An assignment or satisfaction must contain a proper North Carolina acknowledgment, or other acknowledgment approved by Statute.
North Carolina Statutes
§45-36.2. Register of deeds includes assistants and deputies.
The words "register of deeds" appearing in this Article shall be interpreted to mean "register of deeds, assistant register of deeds, or deputy register of deeds." (1953, c. 848.)
§ 45-36.3. Notification by mortgagee of satisfaction of provisions of deed of trust or mortgage, or other instrument; civil penalty.
(a) After the satisfaction of the provisions
of any deed of trust or mortgage, or other instrument intended to secure
with real property the payment of money or the performance of any other
obligation and registered as required by law, the holder of the evidence
of the indebtedness, if it is a single instrument, or a duly authorized
agent or attorney of such holder shall within 60 days:
(1)
Discharge and release of record such documents and forward the cancelled
documents to the grantor, trustor or mortgagor; or,
(2)
Alternatively, the holder of the evidence of the indebtedness or a duly
authorized agent or attorney of such holder, at the request of the grantor,
trustor or mortgagor, shall forward said instrument and the deed of trust
or mortgage instrument, with payment and satisfaction acknowledged in accordance
with the requirements of G.S. 45-37, to the grantor, trustor or mortgagor.
(b) Any person, institution or agent who
fails to comply with this section may be required to pay a civil penalty
of not more than one thousand dollars ($1,000) in addition to reasonable
attorneys' fees and any other damages awarded by the court to the grantor,
trustor or mortgagor, or to a subsequent purchaser of the property from
the grantor, trustor or mortgagor. A five hundred dollar ($500.00)
civil penalty may be recovered by the grantor, trustor or mortgagor,
and a five hundred dollar ($500.00) penalty may be recovered by the purchaser
of the property from the grantor, trustor or mortgagor. If that purchaser
of the property consists of more than a single grantee, then the civil
penalty will be divided equally among all of the grantees. A petitioner
may recover damages under this section only if he has given the mortgagee,
obligee, beneficiary or other responsible party written notice of
his intention to bring an action pursuant to this section. Upon receipt
of this notice, the mortgagee, obligee, beneficiary or other responsible
party shall have 30 days, in addition to the initial 60-day period, to
fulfill the requirements of this section.
(c) Should any person, institution or agent
who is not the present holder of the evidence of indebtedness be required
to pay a civil penalty, attorneys' fees, or other damages under this section,
they will have an action against the holder of the evidence of indebtedness
for all sums they were required to pay.
§ 45-37. Discharge of record of mortgages, deeds of trust and other instruments.
(a) Subject to the provisions of
G.S. 45-73 relating to secured instruments which secure future advances,
any deed of trust or mortgage or other instrument intended to secure the
payment of money or the performance of any other obligation registered
as required by law may be discharged and released of record in the following
manner:
(1)
By acknowledgment of the satisfaction of the provisions of such deed of
trust, mortgage or other instrument in the presence of the register of
deeds by:
a. The trustee,
b. The mortgagee,
c. The legal representative of a trustee or mortgagee,
or
d. A duly authorized agent or attorney of any of
the above.
The register of deeds is not required to verify or make inquiry concerning
the authority of the person acknowledging the satisfaction to do so. Upon
acknowledgment of satisfaction, the register of deeds shall record a record
of satisfaction as described in G.S. 45-37.2, and may forthwith make upon
the margin of the record of such deed of trust, mortgage or other instrument
an entry of such acknowledgment of satisfaction which shall be signed by
the trustee, mortgagee, legal representative, agent or attorney and witnessed
by the register of deeds, who shall also affix his name thereto.
(2)
By exhibition of any deed of trust, mortgage or other instrument accompanied
with the bond, note, or other instrument thereby secured to the register
of deeds, with the endorsement of payment and satisfaction appearing thereon
and made by:
a. The obligee,
b. The mortgagee,
c. The trustee,
d. An assignee of the obligee, mortgagee, or trustee,
or
e. Any chartered banking institution, or savings
and loan association, national or state, or credit union, qualified to
do business in and having an office in the State of North Carolina, when
so endorsed in the name of the institution by an officer thereof.
The register of deeds is not required to verify or make inquiry concerning
the authority of the person making the endorsement of payment and satisfaction
to do so. Upon exhibition of the instruments, the register of deeds shall
cancel the mortgage, deed of trust or other instrument by recording a record
of satisfaction as described in G.S. 45-37.2, and may make an entry of
satisfaction on the margin of the record. The person so claiming satisfaction,
performance or discharge of the debt or other obligation may retain possession
of all of the instruments exhibited. The exhibition of the mortgage, deed
of trust or other instrument alone to the register of deeds, with endorsement
of payment, satisfaction, performance or discharge, shall be sufficient
if the mortgage, deed of trust or other instrument itself sets forth the
obligation secured or the performance of any other obligation and does
not call for or recite any note, bond or other instrument secured by it.
(3)
By exhibiting to the register of deeds by:
a. The grantor,
b. The mortgagor, or
c. An agent, attorney or successor in title of
the grantor or mortgagor of any mortgage, deed of trust or other instrument
intended to secure the payment of money or the performance of any other
obligation, together with the bond, note or other instrument secured thereby,
or by exhibition of the mortgage, deed of trust or other instrument alone
if such instrument itself sets forth the obligation secured or other obligation
to be performed and does not call for or recite any note, bond or other
instrument secured by it, if at the time of exhibition, all such instruments
are more than 10 years old counting from the maturity date of the last
obligation secured. If the instrument or instruments so exhibited have
an endorsement of partial payment, satisfaction, performance or discharge
within the said period of 10 years, the period of 10 years shall be counted
from the date of the most recent endorsement.
The register of deeds shall
cancel the mortgage, deed of trust, or other instrument by recording a
record of satisfaction as described in G.S. 45-37.2, and may make proper
entry of cancellation and satisfaction of said instrument on the margin
of the record where the same is recorded, whether there be any such entries
on the original papers or not.
(4)
By exhibition to the register of deeds of any deed of trust given to secure
the bearer or holder of any negotiable instruments transferable by delivery,
together with all the evidences of indebtedness secured thereby, marked
paid and satisfied in full and signed by the bearer or holder thereof.
Upon exhibition of the deed of trust, and the evidences of indebtedness
properly marked, the register of deeds shall cancel such deed of trust
by recording a record of satisfaction as described in G.S. 45-37.2, and
may make an entry of satisfaction upon the margin of the record, which
record, or entry if made, shall be valid and binding upon all persons,
if no person rightfully entitled to the deed of trust or evidences of indebtedness
has previously notified the register of deeds in writing of the loss or
theft of the instrument or evidences of indebtedness and has caused the
register of deeds to record the notice or loss or theft in a separate document,
as required by G.S. 161-14.1.
Upon receipt of written notice of loss or theft of the deed of trust or
evidences of indebtedness the register of deeds shall record a record of
satisfaction, as described in G.S. 45-37.2, which in this case shall consist
of a rerecording of the record of the deed of trust containing the marginal
entry and may make on the record of the deed of trust concerned a marginal
entry in writing thereof, with the date of receipt of the notice. The deed
of trust shall not be canceled after such recording of a record of satisfaction
or marginal entry until the ownership of said instrument shall have been
lawfully determined. Nothing in this subdivision (4) shall be construed
to impair the negotiability of any instrument otherwise properly negotiable,
nor to impair the rights of any innocent purchaser for value thereof.
Every entry of acknowledgment of satisfaction or of satisfaction made or
witnessed by the register of deeds as provided in subdivision (a)(1) shall
operate and have the same effect to release and discharge all the interest
of such trustee, mortgagee or representative in such deed or mortgage as
if a deed of release or reconveyance thereof had been duly executed and
recorded.
(5)
By exhibition to the register of deeds of a notice of satisfaction of a
deed of trust, mortgage, or other instrument which has been acknowledged
by the trustee or the mortgagee before an officer authorized to take acknowledgments.
The notice of satisfaction shall be substantially in the form set out in
G.S. 47-46.1. The notice of satisfaction shall recite the names of all
parties to the original instrument, the amount of the obligation secured,
the date of satisfaction of the obligation, and a reference by book and
page number to the record of the instrument satisfied. The notice of satisfaction
shall be accompanied by the deed of trust, mortgage, or other instrument,
or a copy of the instrument, for verification and indexing purposes, which
shall not be recorded with the notice.
Upon exhibition of the notice of satisfaction, the register of deeds shall
record the notice of satisfaction and cancel the deed of trust, mortgage,
or other instrument as required by G.S. 45-37.2. No fee shall be charged
for recording any documents or certifying any acknowledgments pursuant
to this subdivision. The register of deeds shall not be required to verify
or make inquiry concerning the authority of the person executing the notice
of satisfaction to do so.
(6)
By exhibition to the register of deeds of a certificate of satisfaction
of a deed of trust, mortgage, or other instrument that has been acknowledged
before an officer authorized to take acknowledgments by the owner of the
note, bond, or other evidence of indebtedness secured by the deed of trust
or mortgage. The certificate of satisfaction shall be accompanied by the
note, bond, or other evidence of indebtedness, if available, with an endorsement
of payment and satisfaction by the owner of the note, bond, or other evidence
of indebtedness. If such evidence of indebtedness cannot be produced, an
affidavit, hereafter referred to as an "affidavit of lost note", signed
by the owner of the note, bond, or other evidence of indebtedness, shall
be delivered to the register of deeds in lieu of the evidence of indebtedness
certifying that the debt has been satisfied and stating: (i) the date of
satisfaction; (ii) that the note, bond, or other evidence of indebtedness
cannot be found; and (iii) that the person signing the affidavit is the
current owner of the note, bond, or other evidence of indebtedness. The
certificate of satisfaction shall be substantially in the form set out
in G.S. 47-46.2 and shall recite the names of all parties to the original
instrument, the amount of the obligation secured, the date of satisfaction
of the obligation, and a reference by book and page number to the record
of the instrument satisfied. The affidavit of lost note, if necessary,
shall be substantially in the form set out in G.S. 47- 46.3. The certificate
of satisfaction shall be accompanied by the deed of trust, mortgage, or
other instrument, or a copy of the instrument, for verification and indexing
purposes, which shall not be recorded with the certificate.
Upon exhibition of the certificate of satisfaction and accompanying evidence
of indebtedness endorsed paid and satisfied, or upon exhibition of an affidavit
of lost note, the register of deeds shall record the certificate of satisfaction
and either the accompanying evidence of indebtedness or the affidavit of
lost note, and shall cancel the deed of trust, mortgage, or other instrument
as required by G.S. 45-37.2. No fee shall be charged for recording any
documents or certifying any acknowledgments pursuant to this subdivision.
The register of deeds shall not be required to verify or make inquiry concerning
the authority of the person executing the certificate of satisfaction to
do so.
(b) It shall be conclusively presumed
that the conditions of any deed of trust, mortgage or other instrument
securing the payment of money or securing the performance of any other
obligation or obligations have been complied with or the debts secured
thereby paid or obligations performed, as against creditors or purchasers
for valuable consideration from the mortgagor or grantor, from and after
the expiration of 15 years from whichever of the following occurs last:
(1)
The date when the conditions of such instrument were required by its terms
to have been performed, or
(2)
The date of maturity of the last installment of debt or interest secured
thereby; provided that the holder of the indebtedness secured by such instrument
or party secured by any provision thereof may file an affidavit with the
register of deeds which affidavit shall specifically state:
(1)
The amount of debt unpaid, which is secured by said instrument; or
(2)
In what respect any other condition thereof shall not have been complied
with; or may record a separate instrument signed by the holder or party secured
and witnessed by the register of deeds stating:
(1)
Any payments that have been made on the indebtedness or other obligation
secured by such instrument including the date and amount of payments and
(2)
The amount still due or obligations not performed under the instrument.
Whenever practical, the register of deeds may also enter the information
contained in the separate instrument on the margin of the record of the
instrument. The effect of the filing of the affidavit or of the instrument
recorded made as herein provided shall be to postpone the effective date
of the conclusive presumption of satisfaction to a date 15 years from the
filing of the affidavit or from the recording of the instrument or the
making of the notation. There shall be only one postponement of the effective
date of the conclusive presumption provided for herein. The register of
deeds shall record the affidavit provided for herein and shall record a
separate instrument, as required by G.S. 161-14.1, making reference to
the filing of such affidavit and to the book and page where the affidavit
is recorded. Whenever practical, the register of deeds may also make such
a reference on the margin of the record of the deed of trust, mortgage,
or other instrument referred to. This subsection shall not apply to any
deed, mortgage, deed of trust or other instrument made or given by any
railroad company, or to any agreement of conditional sale, equipment trust
agreement, lease, chattel mortgage or other instrument relating to the
sale, purchase or lease of railroad equipment or rolling stock, or of other
personal property.
(c) Repealed by Session Laws 1991,
c. 114, s. 4.
(d) For the purposes of this section
"register of deeds" means the register of deeds, his deputies or assistants
of the county in which the mortgage, deed of trust, or other instrument
intended to secure the payment of money or performance of other obligation
is registered.
(e) Any transaction subject to the
provisions of the Uniform Commercial Code, Chapter 25 of the General Statutes,
is controlled by the provisions of that act and not by this section.
(f) Whenever this section requires
a signature or endorsement, that signature or endorsement shall be followed
by the name of the person signing or endorsing the document printed, stamped,
or typed so as to be clearly legible. The register of deeds may refuse
to accept any document when the provisions of this subsection have not
been met.
§ 45-37.2. Recording satisfactions of deeds of trusts and mortgages.
(a) When a notice of satisfaction is recorded pursuant to
G.S. 45-37(a)(5) or a certificate of satisfaction is recorded pursuant
to G.S. 45-37(a)(6), the register of deeds shall make an entry of satisfaction
on the notice or certificate and record and index the instrument.
(b) When a deed of trust, mortgage, or other instrument is
satisfied by a method other than by means of a notice of satisfaction or
certificate of satisfaction, the register of deeds shall record a record
of satisfaction consisting of either a separate instrument or all or a
portion of the original deed of trust or mortgage rerecorded, and shall
make the appropriate entry of satisfaction as provided in G.S. 45-37 on
each record of satisfaction. A separate instrument or original deed of
trust or mortgage rerecorded pursuant to this subsection shall contain
(i) names of all parties to the original instrument, (ii) the amount of
the obligation secured, (iii) the date of satisfaction of the obligation,
(iv) a reference by book and page number to the record of the instrument
satisfied, and (v) the date of recording the notice of satisfaction.
(c) Whenever it is practical to do so, the register of deeds
may make a marginal notation of satisfaction in addition to making the
recordation required by this section.
§45-41. Recorded deed of release of mortgagee's representative.
The personal representative of any mortgagee or trustee in any mortgage or deed of trust which has heretofore or which may hereafter be registered in the manner required by the laws of this State may discharge and release the same and all property thereby conveyed by deed of quitclaim, release or conveyance executed, acknowledged and recorded as is now prescribed by law for the execution, acknowledgment and registration of deeds and mortgages in this State.
§ 45-42. Satisfaction of corporate mortgages by corporate officers.
All mortgages and deeds in trust executed to a corporation may be satisfied and so marked of record as by law provided for the satisfaction of mortgages and deeds in trust, by any officer of the corporation indicating the office held. For the purposes of recordation and cancellation, such signature shall be deemed to be a certification by the signer that he is an officer and is authorized to execute the satisfaction on behalf of such corporation. Where mortgages or deeds in trust were marked "satisfied" on the records before the twenty-third day of February, 1909, by any president, secretary, treasurer or cashier of any corporation by such officer writing his own name and affixing thereto the title of his office in such corporation, such satisfaction is validated, and is as effective to all intents and purposes as if a deed of release duly executed by such corporation had been made, acknowledged and recorded.
Assignments Generally:
Lenders, or holders of mortgages or deeds of trust, often assign mortgages or deeds of trust to other lenders, or third parties. When this is done the assignee (person who received the assignment) steps into the place of the original lender or assignor. To effectuate an assignment, the general rule is that the assignment must be in proper written format and recorded to provide notice of the assignment.
Satisfactions Generally:
Once a mortgage or deed of trust is paid, the holder of the mortgage is required to satisfy the mortgage or deed of trust of record to show that the mortgage or deed of trust is no longer a lien on the property. The general rule is that the satisfaction must be in proper written format and recorded to provide notice of the satisfaction. If the lender fails to record a satisfaction within set time limits, the lender may be responsible for damages set by statute for failure to timely cancel the lien. Depending on your state, a satisfaction may be called a Satisfaction, Cancellation, or Reconveyance. Some states still recognize marginal satisfaction but this is slowly being phased out. A marginal satisfaction is where the holder of the mortgage physically goes to the recording office and enters a satisfaction on the face of the the recorded mortgage, which is attested by the clerk.
North Carolina Law
Assignment:
An assignment must be in writing and recorded.
Demand to Satisfy:
A petitioner may recover damages under this section only if he has given the mortgagee, obligee, beneficiary or other responsible party written notice of his intention to bring an action pursuant to this section. Upon receipt of this notice, the mortgagee, obligee, beneficiary or other responsible party shall have 30 days, in addition to the initial 60-day period, to fulfill the requirements of this section. See code section 45-36.3(2)(b), below.
Recording Satisfaction:
Upon full payoff, within 60 days the lender must either forward the satisfaction document to the borrower, or have the satisfaction recorded of record. See, 45-36.3, below.
Marginal Satisfaction:
A marginal satisfaction may be done in addition to recording the satisfaction document. See 45-37, below.
Penalty:
Any person, institution or agent who fails to comply with this section may be required to pay a civil penalty of not more than one thousand dollars ($1,000) in addition to reasonable attorneys' fees and any other damages awarded by the court to the grantor, trustor or mortgagor, or to a subsequent purchaser of the property from the grantor, trustor or mortgagor. See code section 45-36.3(2)(b) below.
Acknowledgment:
An assignment or satisfaction must contain a proper North Carolina acknowledgment, or other acknowledgment approved by Statute.
North Carolina Statutes
§45-36.2. Register of deeds includes assistants and deputies.
The words "register of deeds" appearing in this Article shall be interpreted to mean "register of deeds, assistant register of deeds, or deputy register of deeds." (1953, c. 848.)
§ 45-36.3. Notification by mortgagee of satisfaction of provisions of deed of trust or mortgage, or other instrument; civil penalty.
(a) After the satisfaction of the provisions
of any deed of trust or mortgage, or other instrument intended to secure
with real property the payment of money or the performance of any other
obligation and registered as required by law, the holder of the evidence
of the indebtedness, if it is a single instrument, or a duly authorized
agent or attorney of such holder shall within 60 days:
(1)
Discharge and release of record such documents and forward the cancelled
documents to the grantor, trustor or mortgagor; or,
(2)
Alternatively, the holder of the evidence of the indebtedness or a duly
authorized agent or attorney of such holder, at the request of the grantor,
trustor or mortgagor, shall forward said instrument and the deed of trust
or mortgage instrument, with payment and satisfaction acknowledged in accordance
with the requirements of G.S. 45-37, to the grantor, trustor or mortgagor.
(b) Any person, institution or agent who
fails to comply with this section may be required to pay a civil penalty
of not more than one thousand dollars ($1,000) in addition to reasonable
attorneys' fees and any other damages awarded by the court to the grantor,
trustor or mortgagor, or to a subsequent purchaser of the property from
the grantor, trustor or mortgagor. A five hundred dollar ($500.00)
civil penalty may be recovered by the grantor, trustor or mortgagor,
and a five hundred dollar ($500.00) penalty may be recovered by the purchaser
of the property from the grantor, trustor or mortgagor. If that purchaser
of the property consists of more than a single grantee, then the civil
penalty will be divided equally among all of the grantees. A petitioner
may recover damages under this section only if he has given the mortgagee,
obligee, beneficiary or other responsible party written notice of
his intention to bring an action pursuant to this section. Upon receipt
of this notice, the mortgagee, obligee, beneficiary or other responsible
party shall have 30 days, in addition to the initial 60-day period, to
fulfill the requirements of this section.
(c) Should any person, institution or agent
who is not the present holder of the evidence of indebtedness be required
to pay a civil penalty, attorneys' fees, or other damages under this section,
they will have an action against the holder of the evidence of indebtedness
for all sums they were required to pay.
§ 45-37. Discharge of record of mortgages, deeds of trust and other instruments.
(a) Subject to the provisions of
G.S. 45-73 relating to secured instruments which secure future advances,
any deed of trust or mortgage or other instrument intended to secure the
payment of money or the performance of any other obligation registered
as required by law may be discharged and released of record in the following
manner:
(1)
By acknowledgment of the satisfaction of the provisions of such deed of
trust, mortgage or other instrument in the presence of the register of
deeds by:
a. The trustee,
b. The mortgagee,
c. The legal representative of a trustee or mortgagee,
or
d. A duly authorized agent or attorney of any of
the above.
The register of deeds is not required to verify or make inquiry concerning
the authority of the person acknowledging the satisfaction to do so. Upon
acknowledgment of satisfaction, the register of deeds shall record a record
of satisfaction as described in G.S. 45-37.2, and may forthwith make upon
the margin of the record of such deed of trust, mortgage or other instrument
an entry of such acknowledgment of satisfaction which shall be signed by
the trustee, mortgagee, legal representative, agent or attorney and witnessed
by the register of deeds, who shall also affix his name thereto.
(2)
By exhibition of any deed of trust, mortgage or other instrument accompanied
with the bond, note, or other instrument thereby secured to the register
of deeds, with the endorsement of payment and satisfaction appearing thereon
and made by:
a. The obligee,
b. The mortgagee,
c. The trustee,
d. An assignee of the obligee, mortgagee, or trustee,
or
e. Any chartered banking institution, or savings
and loan association, national or state, or credit union, qualified to
do business in and having an office in the State of North Carolina, when
so endorsed in the name of the institution by an officer thereof.
The register of deeds is not required to verify or make inquiry concerning
the authority of the person making the endorsement of payment and satisfaction
to do so. Upon exhibition of the instruments, the register of deeds shall
cancel the mortgage, deed of trust or other instrument by recording a record
of satisfaction as described in G.S. 45-37.2, and may make an entry of
satisfaction on the margin of the record. The person so claiming satisfaction,
performance or discharge of the debt or other obligation may retain possession
of all of the instruments exhibited. The exhibition of the mortgage, deed
of trust or other instrument alone to the register of deeds, with endorsement
of payment, satisfaction, performance or discharge, shall be sufficient
if the mortgage, deed of trust or other instrument itself sets forth the
obligation secured or the performance of any other obligation and does
not call for or recite any note, bond or other instrument secured by it.
(3)
By exhibiting to the register of deeds by:
a. The grantor,
b. The mortgagor, or
c. An agent, attorney or successor in title of
the grantor or mortgagor of any mortgage, deed of trust or other instrument
intended to secure the payment of money or the performance of any other
obligation, together with the bond, note or other instrument secured thereby,
or by exhibition of the mortgage, deed of trust or other instrument alone
if such instrument itself sets forth the obligation secured or other obligation
to be performed and does not call for or recite any note, bond or other
instrument secured by it, if at the time of exhibition, all such instruments
are more than 10 years old counting from the maturity date of the last
obligation secured. If the instrument or instruments so exhibited have
an endorsement of partial payment, satisfaction, performance or discharge
within the said period of 10 years, the period of 10 years shall be counted
from the date of the most recent endorsement.
The register of deeds shall
cancel the mortgage, deed of trust, or other instrument by recording a
record of satisfaction as described in G.S. 45-37.2, and may make proper
entry of cancellation and satisfaction of said instrument on the margin
of the record where the same is recorded, whether there be any such entries
on the original papers or not.
(4)
By exhibition to the register of deeds of any deed of trust given to secure
the bearer or holder of any negotiable instruments transferable by delivery,
together with all the evidences of indebtedness secured thereby, marked
paid and satisfied in full and signed by the bearer or holder thereof.
Upon exhibition of the deed of trust, and the evidences of indebtedness
properly marked, the register of deeds shall cancel such deed of trust
by recording a record of satisfaction as described in G.S. 45-37.2, and
may make an entry of satisfaction upon the margin of the record, which
record, or entry if made, shall be valid and binding upon all persons,
if no person rightfully entitled to the deed of trust or evidences of indebtedness
has previously notified the register of deeds in writing of the loss or
theft of the instrument or evidences of indebtedness and has caused the
register of deeds to record the notice or loss or theft in a separate document,
as required by G.S. 161-14.1.
Upon receipt of written notice of loss or theft of the deed of trust or
evidences of indebtedness the register of deeds shall record a record of
satisfaction, as described in G.S. 45-37.2, which in this case shall consist
of a rerecording of the record of the deed of trust containing the marginal
entry and may make on the record of the deed of trust concerned a marginal
entry in writing thereof, with the date of receipt of the notice. The deed
of trust shall not be canceled after such recording of a record of satisfaction
or marginal entry until the ownership of said instrument shall have been
lawfully determined. Nothing in this subdivision (4) shall be construed
to impair the negotiability of any instrument otherwise properly negotiable,
nor to impair the rights of any innocent purchaser for value thereof.
Every entry of acknowledgment of satisfaction or of satisfaction made or
witnessed by the register of deeds as provided in subdivision (a)(1) shall
operate and have the same effect to release and discharge all the interest
of such trustee, mortgagee or representative in such deed or mortgage as
if a deed of release or reconveyance thereof had been duly executed and
recorded.
(5)
By exhibition to the register of deeds of a notice of satisfaction of a
deed of trust, mortgage, or other instrument which has been acknowledged
by the trustee or the mortgagee before an officer authorized to take acknowledgments.
The notice of satisfaction shall be substantially in the form set out in
G.S. 47-46.1. The notice of satisfaction shall recite the names of all
parties to the original instrument, the amount of the obligation secured,
the date of satisfaction of the obligation, and a reference by book and
page number to the record of the instrument satisfied. The notice of satisfaction
shall be accompanied by the deed of trust, mortgage, or other instrument,
or a copy of the instrument, for verification and indexing purposes, which
shall not be recorded with the notice.
Upon exhibition of the notice of satisfaction, the register of deeds shall
record the notice of satisfaction and cancel the deed of trust, mortgage,
or other instrument as required by G.S. 45-37.2. No fee shall be charged
for recording any documents or certifying any acknowledgments pursuant
to this subdivision. The register of deeds shall not be required to verify
or make inquiry concerning the authority of the person executing the notice
of satisfaction to do so.
(6)
By exhibition to the register of deeds of a certificate of satisfaction
of a deed of trust, mortgage, or other instrument that has been acknowledged
before an officer authorized to take acknowledgments by the owner of the
note, bond, or other evidence of indebtedness secured by the deed of trust
or mortgage. The certificate of satisfaction shall be accompanied by the
note, bond, or other evidence of indebtedness, if available, with an endorsement
of payment and satisfaction by the owner of the note, bond, or other evidence
of indebtedness. If such evidence of indebtedness cannot be produced, an
affidavit, hereafter referred to as an "affidavit of lost note", signed
by the owner of the note, bond, or other evidence of indebtedness, shall
be delivered to the register of deeds in lieu of the evidence of indebtedness
certifying that the debt has been satisfied and stating: (i) the date of
satisfaction; (ii) that the note, bond, or other evidence of indebtedness
cannot be found; and (iii) that the person signing the affidavit is the
current owner of the note, bond, or other evidence of indebtedness. The
certificate of satisfaction shall be substantially in the form set out
in G.S. 47-46.2 and shall recite the names of all parties to the original
instrument, the amount of the obligation secured, the date of satisfaction
of the obligation, and a reference by book and page number to the record
of the instrument satisfied. The affidavit of lost note, if necessary,
shall be substantially in the form set out in G.S. 47- 46.3. The certificate
of satisfaction shall be accompanied by the deed of trust, mortgage, or
other instrument, or a copy of the instrument, for verification and indexing
purposes, which shall not be recorded with the certificate.
Upon exhibition of the certificate of satisfaction and accompanying evidence
of indebtedness endorsed paid and satisfied, or upon exhibition of an affidavit
of lost note, the register of deeds shall record the certificate of satisfaction
and either the accompanying evidence of indebtedness or the affidavit of
lost note, and shall cancel the deed of trust, mortgage, or other instrument
as required by G.S. 45-37.2. No fee shall be charged for recording any
documents or certifying any acknowledgments pursuant to this subdivision.
The register of deeds shall not be required to verify or make inquiry concerning
the authority of the person executing the certificate of satisfaction to
do so.
(b) It shall be conclusively presumed
that the conditions of any deed of trust, mortgage or other instrument
securing the payment of money or securing the performance of any other
obligation or obligations have been complied with or the debts secured
thereby paid or obligations performed, as against creditors or purchasers
for valuable consideration from the mortgagor or grantor, from and after
the expiration of 15 years from whichever of the following occurs last:
(1)
The date when the conditions of such instrument were required by its terms
to have been performed, or
(2)
The date of maturity of the last installment of debt or interest secured
thereby; provided that the holder of the indebtedness secured by such instrument
or party secured by any provision thereof may file an affidavit with the
register of deeds which affidavit shall specifically state:
(1)
The amount of debt unpaid, which is secured by said instrument; or
(2)
In what respect any other condition thereof shall not have been complied
with; or may record a separate instrument signed by the holder or party secured
and witnessed by the register of deeds stating:
(1)
Any payments that have been made on the indebtedness or other obligation
secured by such instrument including the date and amount of payments and
(2)
The amount still due or obligations not performed under the instrument.
Whenever practical, the register of deeds may also enter the information
contained in the separate instrument on the margin of the record of the
instrument. The effect of the filing of the affidavit or of the instrument
recorded made as herein provided shall be to postpone the effective date
of the conclusive presumption of satisfaction to a date 15 years from the
filing of the affidavit or from the recording of the instrument or the
making of the notation. There shall be only one postponement of the effective
date of the conclusive presumption provided for herein. The register of
deeds shall record the affidavit provided for herein and shall record a
separate instrument, as required by G.S. 161-14.1, making reference to
the filing of such affidavit and to the book and page where the affidavit
is recorded. Whenever practical, the register of deeds may also make such
a reference on the margin of the record of the deed of trust, mortgage,
or other instrument referred to. This subsection shall not apply to any
deed, mortgage, deed of trust or other instrument made or given by any
railroad company, or to any agreement of conditional sale, equipment trust
agreement, lease, chattel mortgage or other instrument relating to the
sale, purchase or lease of railroad equipment or rolling stock, or of other
personal property.
(c) Repealed by Session Laws 1991,
c. 114, s. 4.
(d) For the purposes of this section
"register of deeds" means the register of deeds, his deputies or assistants
of the county in which the mortgage, deed of trust, or other instrument
intended to secure the payment of money or performance of other obligation
is registered.
(e) Any transaction subject to the
provisions of the Uniform Commercial Code, Chapter 25 of the General Statutes,
is controlled by the provisions of that act and not by this section.
(f) Whenever this section requires
a signature or endorsement, that signature or endorsement shall be followed
by the name of the person signing or endorsing the document printed, stamped,
or typed so as to be clearly legible. The register of deeds may refuse
to accept any document when the provisions of this subsection have not
been met.
§ 45-37.2. Recording satisfactions of deeds of trusts and mortgages.
(a) When a notice of satisfaction is recorded pursuant to
G.S. 45-37(a)(5) or a certificate of satisfaction is recorded pursuant
to G.S. 45-37(a)(6), the register of deeds shall make an entry of satisfaction
on the notice or certificate and record and index the instrument.
(b) When a deed of trust, mortgage, or other instrument is
satisfied by a method other than by means of a notice of satisfaction or
certificate of satisfaction, the register of deeds shall record a record
of satisfaction consisting of either a separate instrument or all or a
portion of the original deed of trust or mortgage rerecorded, and shall
make the appropriate entry of satisfaction as provided in G.S. 45-37 on
each record of satisfaction. A separate instrument or original deed of
trust or mortgage rerecorded pursuant to this subsection shall contain
(i) names of all parties to the original instrument, (ii) the amount of
the obligation secured, (iii) the date of satisfaction of the obligation,
(iv) a reference by book and page number to the record of the instrument
satisfied, and (v) the date of recording the notice of satisfaction.
(c) Whenever it is practical to do so, the register of deeds
may make a marginal notation of satisfaction in addition to making the
recordation required by this section.
§45-41. Recorded deed of release of mortgagee's representative.
The personal representative of any mortgagee or trustee in any mortgage or deed of trust which has heretofore or which may hereafter be registered in the manner required by the laws of this State may discharge and release the same and all property thereby conveyed by deed of quitclaim, release or conveyance executed, acknowledged and recorded as is now prescribed by law for the execution, acknowledgment and registration of deeds and mortgages in this State.
§ 45-42. Satisfaction of corporate mortgages by corporate officers.
All mortgages and deeds in trust executed to a corporation may be satisfied and so marked of record as by law provided for the satisfaction of mortgages and deeds in trust, by any officer of the corporation indicating the office held. For the purposes of recordation and cancellation, such signature shall be deemed to be a certification by the signer that he is an officer and is authorized to execute the satisfaction on behalf of such corporation. Where mortgages or deeds in trust were marked "satisfied" on the records before the twenty-third day of February, 1909, by any president, secretary, treasurer or cashier of any corporation by such officer writing his own name and affixing thereto the title of his office in such corporation, such satisfaction is validated, and is as effective to all intents and purposes as if a deed of release duly executed by such corporation had been made, acknowledged and recorded.