The NC General Assembly has passed Senate Bill 761 (AN ACT TO REFORM AND MODERNIZE THE ACKNOWLEDGMENT OF CORPORATE REAL PROPERTY INSTRUMENTS AND THE EXECUTION OF REAL PROPERTY INSTRUMENTS GENERALLY). The Act creates NCGS § 39-6.5, which states "The seal of the signatory shall not be necessary to effect a valid conveyance of an interest in real property…." This statute became effective when it became law (June 25, 1999) and applies to instruments registered before, on, or after that date, except for matters involved in litigation pending on that date.

The Act also modifies NCGS § 1-47(2) so that an instrument conveying an interest in real property is subject to the ten year statute of limitations, even though said instrument is not executed under "SEAL". This modification is also effective as of June 25, 1999.

The Act addresses corporate conveyances by modifying NCGS §§ 47-18.3 and 47-41.01 regarding attestation, the corporate seal requirement and providing an additional form of corporate acknowledgment. The modifications to these two statutes do not take effect until October 1, 1999. We will provide more information regarding corporate conveyances prior to October 1, 1999.

Please feel free to contact our Underwriting Department (800/445-9983) or your local Chicago Title office to obtain a copy of Senate Bill 761. To view the full text of the bill, click the following link: senate bill 761.htm