State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_43 > GS_43-36

§43‑36.  When land conveyed as security.

(a)        Whole LandConveyed. – Whenever the owner of any registered estate shall desire to conveysame as security for debt, it may be done in the following manner, by a shortform of transfer, substantially as follows, to wit:

A.B. and wife (giving names ofall owners or holders of certificates and their wives) hereby transfer to C.D.the tract or lot of land described as No. ________ in registration of titlesbook for ________ County, a certificate for the title for same being heretoattached, to secure a debt of ________ dollars, due to ________, of____________ County and State, on the ________ day of ____________, ________,evidenced by bond (or otherwise as the case may be) dated the ________ day of____________, ________. In case of default in payment of said debt with accruedinterest, ________ days notice of sale required.

The same shall be signed andproperly acknowledged by the parties making same, and shall be presented,together with the owner's certificate, to the register of deeds, whose duty itshall be to note upon the owner's certificate and upon the certificate of titlein the consolidated real property records the name of the trustee, the amountof debt, and the date of maturity of same.

(b)        Part of LandConveyed. – When a part of the registered estate shall be so conveyed, theregister of deeds shall note upon the consolidated real property records andowner's certificate the part so conveyed, and if the same be required and theproper fee paid by the trustee, shall issue what shall be known as a partialcertificate, over his hand and seal, setting out the portion so conveyed.

(c)        Effect of Transfer.– All transfers by such short form shall convey the power of sale upon dueadvertisement at the county courthouse and in some newspaper published in thecounty, or adjoining county, in the same manner and as fully as is now providedby law in the case of mortgages and deeds of trust and default therein.

(d)        Other EncumbrancesNoted. – All registered encumbrances, rights or adverse claims affecting theestate represented thereby shall continue to be noted, not only upon thecertificate of title in the consolidated real property records, but also uponthe owner's certificate, until same shall have been released or discharged. Andin the event of second or other subsequent voluntary encumbrances the holder ofthe certificate may be required to produce such certificate for the entrythereon or attachment thereto of the note of such subsequent charge orencumbrance as provided in this Article.

(e)        Other Forms ofConveyance May Be Used. – Nothing in this section nor this Chapter shall beconstrued to prevent the owner from conveying such land, or any part of thesame, as security for a debt by deed of trust or mortgage in any form which maybe agreed upon between the parties thereto, and having such deed of trust ormortgage recorded in the office of the register of deeds as other deeds oftrust and mortgages are recorded: Provided, that the book and page of the recordat which such deed of trust or mortgage is recorded shall be entered by theregister of deeds upon the owner's certificate and also on the consolidatedreal property records.

(f)         Sale under Lien;New Certification. – Upon foreclosure of such deed of trust or mortgage, orsale under execution for taxes or other lien on the land, the fact of suchforeclosure or sale shall be reported by the trustee, mortgagee or other personauthorized to make the same, to the register of deeds of the county in whichthe land lies, and, upon satisfactory evidence thereof, it shall be his duty tocall in and cancel the outstanding certificate of title for the land, so sold,and to issue a new certificate in its place to the purchaser or other personentitled thereto; and the production of such outstanding certificate and itssurrender by the holder thereof may be compelled, upon notice to him, by motionbefore and order of the clerk of the superior court in the original proceedingor the clerk of the superior court of the county in which the land lies; butthe right of appeal from such order may be exercised and shall be allowed as inother special proceedings, and pending any such appeal the rights of allparties shall be preserved. (1913, c. 90, s. 14; 1915, c.245; 1919, c. 82, s. 5; C.S., s. 2410; 1999‑456, s. 59; 2000‑140,s. 42(e).)