Senate Bill 405(SL 2009-454) became effective in North Carolina on January 1, 2010. Senate Bill 405 slightly changes the requirements for deeds in North Carolina, apparently in order to facilitate accurate property tax appraisals. The following information is now required to be included on deeds in North Carolina: (i) The name and mailing address of each grantor and grantee and (ii) A statement whether the property being conveyed includes the primary residence of a grantor. Although this information is now required on deeds, the new N.C. Gen. Stat. Sec. 105-317.2 specifies "[f]ailure to comply with this section does not affect the validity of a duly recorded deed."
Senate Bill 405 also tweaks N.C. Gen. Stat. Sec. 105-228.32 by adding a sentence that states as follows: "It is the duty of the person presenting the instrument for registration to report the correct amount tax due." It will be interesting to see what the implications of this "tweak" will be and whether or not litigation grows around possible violations of this new duty. Will Register of Deeds offices start making the person presenting an instrument for registration put their name on the document? Will we see municipalities taking actions against persons who present instruments for registration and fail to report the correct amount of tax due under this statute?
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