Chapter 45 Mortgages and Deeds of Trust
Article 1 - Chattel Securities.
Article 2 - Right to Foreclose or Sell under Power.
- § 45-4 Representative succeeds on death of mortgagee or trustee in deeds of trust; parties to action
When the mortgagee in a mortgage, or the trustee in a deed in trust, executed for the purpose of securing a debt, containing a power...
- § 45-5 Foreclosures by representatives validated
In all actions which were brought or prosecuted prior to the fourth day of March, 1905, for the foreclosure of any mortgage or deed in...
- § 45-6 Renunciation by representative; clerk appoints trustee
The executor or administrator of any deceased mortgagee or trustee in any mortgage or deed of trust heretofore or hereafter executed may renounce in writing,...
- § 45-7 Agent to sell under power may be appointed by parol
All sales of real property, under a power of sale contained in any mortgage or deed of trust to secure the payment of money, by...
- § 45-8 Survivorship among donees of power of sale
In all mortgages and deeds of trust of real property wherein two or more persons, as trustees or otherwise, are given power to sell the...
- § 45-9 Clerk appoints successor to incompetent trustee
When the sole or last surviving trustee named in a will or deed of trust dies, removes from the county where the will was probated...
- § 45-10 Substitution of trustees in mortgages and deeds of trust
In addition to the rights and remedies now provided by law, the holders or owners of a majority in amount of the indebtedness, notes, bonds,...
- § 45-11 Appointment of substitute trustee upon application of subsequent or prior lienholders; effect of substitution
When any person, firm, corporation, county, city or town holding a lien on real property upon which there is a subsequent or prior lien created...
- § 45-12 Repealed by Session Laws 1973, c. 1208
- § 45-13 Repealed by Session Laws 1981, c. 599, s. 12
- § 45-14 Acts of trustee prior to removal not invalidated
If any such trustee who has been substituted as provided in G.S. 45‑10 or in G.S. 45‑11 shall have performed any functions as such trustee...
- § 45-15 Registration of substitution constructive notice
The registration of such paper‑writing designating a new trustee under G.S. 45‑10 or under G.S. 45‑11 shall be from and after registration, constructive notice to...
- § 45-16 Register of deeds to make marginal entry of substituted trustee
Whenever any substituted trustee shall be appointed as provided in G.S. 45‑10 through G.S. 45‑17 and such designation of such substituted trustee shall have been...
- § 45-17 Substitution made as often as justifiable
The powers set out in G.S. 45‑10 and in G.S. 45‑11 may be exercised as often and as many times as the right to make...
- § 45-18 Validation of certain acts of substituted trustees
Whenever before January 1, 1979, a trustee has been substituted in a deed of trust in the manner provided by G.S. 45‑10 to 45‑17, but...
- § 45-19 Mortgage to guardian; powers pass to succeeding guardian
When a guardian to whom a mortgage has been executed dies or is removed or resigns before the payment of the debt secured in such...
- § 45-20 Sales by mortgagees and trustees confirmed
All sales of real property made prior to February 10, 1905, by mortgagees and trustees under powers of sale contained in any mortgage or deed...
- § 45-20.1 Validation of trustees' deeds where seals omitted
All deeds executed prior to January 1, 1991, by any trustee or substitute trustee in the exercise of the power of sale vested in him...
- § 45-20.2 Repealed by Session Laws 1981, c. 183, s. 2
- § 45-20.3 Validation of deeds where seal omitted on power of attorney
All deeds and other conveyances executed prior to January 1, 1991, by any attorney‑in‑fact in the exercise of a power of attorney are valid even...
- § 45-21 Validation of appointment of and conveyances to corporations as trustees
In all deeds of trust made prior to March 15, 1941, wherein property has been conveyed to corporations as trustees to secure indebtedness, the appointment...
Article 2A - Sales under Power of Sale.
- § 45-21.1 Definitions; construction
(a) The following definitions apply in this Article: (1) "Resale" means a resale of real property or a resale of any leasehold interest created by...
- § 45-21.2 Article not applicable to foreclosure by court action
This Article does not affect any right to foreclosure by action in court, and is not applicable to any such action. (1949, c. 720, s.
- § 45-21.3 Repealed by Session Laws 1993, c. 305, s. 2
- § 45-21.4 Place of sale of real property
(a) Every sale of real property shall be held in the county where the property is situated unless the property consists of a single tract...
- § 45-21.5 through 45-21.6 Repealed by Session Laws 1967, c. 562, s. 2
- § 45-21.7 Sale of separate tracts in different counties
(a) When the property to be sold consists of separate tracts of real property situated in different counties, there shall be a separate advertisement, sale...
- § 45-21.8 Sale as a whole or in parts
(a) When the instrument pursuant to which a sale is to be held contains provisions with respect to whether the property therein described is to...
- § 45-21.9 Amount to be sold when property sold in parts; sale of remainder if necessary
(a) When a person exercising a power of sale sells property in parts pursuant to G.S. 45‑21.8 he shall sell as many of such separately...
- § 45-21.9A Simultaneous foreclosure of two or more instruments
When two or more mortgages or deeds of trust held by the same person are secured in whole or in part by the same property,...
- § 45-21.10 Requirement of cash deposit at sale
(a) If a mortgage or deed of trust contains provisions with respect to a cash deposit at the sale, the terms of the instrument shall...
- § 45-21.11 Application of statute of limitations to serial notes
When a series of notes maturing at different times is secured by a mortgage or deed of trust and the exercise of the power of...
- § 45-21.12 Power of sale barred when foreclosure barred
(a) Except as provided in subsection (b), no person shall exercise any power of sale contained in any mortgage or deed of trust, or provided...
- § 45-21.13 Repealed by Session Laws 1967, c. 562, s. 2
- § 45-21.14 Clerk's authority to compel report or accounting; contempt proceeding
Whenever any person fails to file any report or account, as provided by this Article, or files an incorrect or incomplete report or account, the...
- § 45-21.15 Trustee's fees
(a) When a sale has been held, the trustee is entitled to such compensation, if any, as is stipulated in the instrument. (b) When no...
- § 45-21.16 Notice and hearing
(a) The mortgagee or trustee granted a power of sale under a mortgage or deed of trust who seeks to exercise such power of sale...
- § 45-21.16A Contents of notice of sale
(a) Except as provided in subsection (b) of this section, the notice of sale shall include all of the following: (1) Describe the instrument pursuant...
- § 45-21.17 Posting and publishing notice of sale of real property
In addition to complying with such provisions with respect to posting or publishing notice of sale as are contained in the security instrument, (1) Notice...
- § 45-21.17A Requests for copies of notice
(a) Any person desiring a copy of any notice of sale may, at any time subsequent to the recordation of the security instrument and prior...
- § 45-21.18 through 45-21.19 Repealed by Session Laws 1967, c. 562, s. 2
- § 45-21.20 Satisfaction of debt after publishing or posting notice, but before completion of sale
A power of sale is terminated if, prior to the time fixed for a sale, or prior to the expiration of the time for submitting...
- § 45-21.21 Postponement of sale
(a) Any person exercising a power of sale may postpone the sale to a day certain not later than 90 days, exclusive of Sunday, after...
- § 45-21.22 Procedure upon dissolution of order restraining or enjoining sale, or upon lifting of automatic bankruptcy stay
(a) When, before the date fixed for a sale, a judge dissolves an order restraining or enjoining the sale, he may, if the required notice...
- § 45-21.23 Time of sale
A sale shall begin at the time designated in the notice of sale or as soon thereafter as practicable, but not later than one hour...
- § 45-21.24 Continuance of uncompleted sale
A sale commenced but not completed within the time allowed by G.S. 45‑21.23 shall be continued by the person holding the sale to a designated...
- § 45-21.25 Repealed by Session Laws 1967, c. 562, s. 2
- § 45-21.26 Preliminary report of sale of real property
(a) The person exercising a power of sale of real property, shall, within five days after the date of the sale, file a report thereof...
- § 45-21.27 Upset bid on real property; compliance bonds
(a) An upset bid is an advanced, increased, or raised bid whereby any person offers to purchase real property theretofore sold, for an amount exceeding...
- § 45-21.28 Repealed by Session Laws 1993, c. 305, s. 17
- § 45-21.29 Orders for possession
(a)‑(j) Repealed by Session Laws 1993, c. 305, s. 18. (k) Orders for possession of real property sold pursuant to this Article, in favor of...
- § 45-21.29A No necessity for confirmation of sale
No confirmation of sales or resales of real property made pursuant to this Article shall be required. If an upset bid is not filed following...
- § 45-21.30 Failure of bidder to make cash deposit or to comply with bid; resale
(a) If the terms of a sale of real property require the highest bidder to make a cash deposit at the sale, and he fails...
- § 45-21.31 Disposition of proceeds of sale; payment of surplus to clerk
(a) The proceeds of any sale shall be applied by the person making the sale, in the following order, to the payment of (1) Costs...
- § 45-21.32 Special proceeding to determine ownership of surplus
(a) A special proceeding may be instituted before the clerk of the superior court by any person claiming any money, or part thereof, paid into...
- § 45-21.33 Final report of sale of real property
(a) A person who holds a sale of real property pursuant to a power of sale shall file with the clerk of the superior court...
Article 2B - Injunctions; Deficiency Judgments.
- § 45-21.34 Enjoining mortgage sales on equitable grounds
Any owner of real estate, or other person, firm or corporation having a legal or equitable interest therein, may apply to a judge of the...
- § 45-21.35 Ordering resales; receivers for property; tax payments
The court or judge granting such order or injunction, or before whom the same is returnable, shall have the right before, but not after, the...
- § 45-21.36 Right of mortgagor to prove in deficiency suits reasonable value of property by way of defense
When any sale of real estate has been made by a mortgagee, trustee, or other person authorized to make the same, at which the mortgagee,...
- § 45-21.37 Certain sections not applicable to tax suits
Sections 45‑21.34 through 45‑21.36 do not apply to tax foreclosure suits or tax sales. (1933, c. 275, s. 4; 1949, c. 720, s. 3.)
- § 45-21.38 Deficiency judgments abolished where mortgage represents part of purchase price
In all sales of real property by mortgagees and/or trustees under powers of sale contained in any mortgage or deed of trust executed after February...
Article 2C - Validating Sections; Limitation of Time for Attacking Certain Foreclosures.
- § 45-21.39 Limitation of time for attacking certain foreclosures on ground trustee was agent, etc., of owner of debt
(a) No action or proceeding shall be brought or defense or counterclaim pleaded later than one year after March 14, 1941, in which a foreclosure...
- § 45-21.40 Real property; validation of deeds made after expiration of statute of limitations where sales made prior thereto
In all cases where sales of real property have been made under powers of sale contained in mortgages or deeds of trust and such sales...
- § 45-21.41 Orders signed on days other than first and third Mondays validated; force and effect of deeds
In all actions for the foreclosure of any mortgage or deed of trust which has heretofore been instituted and prosecuted before the clerk of the...
- § 45-21.42 Validation of deeds where no order or record of confirmation can be found
In all cases prior to the first day of March, 1974, where sales of property have been made under the power of sale contained in...
- § 45-21.43 Validation of certain foreclosure sales
In all cases where mortgages or deeds of trust on real estate with power of sale have been foreclosed pursuant to said power by proper...
- § 45-21.44 Validation of foreclosure sales when provisions of G.S. 45-21.17(2) not complied with
In all cases prior to May 1, 1990, where mortgages or deeds of trust on real estate with power of sale have been foreclosed pursuant...
- § 45-21.45 Validation of foreclosure sales where notice and hearing not provided
In all cases where mortgages or deeds of trust on real estate with power of sale have been foreclosed pursuant to said power by proper...
- § 45-21.46 Validation of foreclosure sales where posting and publication not complied with
(a) In all cases of foreclosure of mortgages or deeds of trust secured by real estate pursuant to power of sale which foreclosures were commenced...
- § 45-21.47 Validation of foreclosure sales when trustee is officer of owner of debt
All sales of real property made prior to January 1, 1991, under a power of sale contained in a mortgage or deed of trust for...
- § 45-21.48 Validation of certain foreclosure sales that did not comply with posting requirement
A sale of real property made on or before July 2, 1985, under a power of sale contained in a mortgage or deed of trust,...
- § 45-21.49 Validation of foreclosure sales when provisions of § 45-21.16A(3) not complied with
(a) Whenever any real property was sold under a power of sale as provided in Article 2A of Chapter 45, and the notice of...
Article 3 - Mortgage Sales.
- § 45-22 Transferred to G.S. 45-21.39 by Session Laws 1949, c. 720, s. 4
- § 45-23 through 45-26 Repealed by Session Laws 1949, c. 720, s. 5
- § 45-26.1 Transferred to G.S. 45-21.40 by Session Laws 1949, c. 720, s. 4
- § 45-27 through 45-30 Repealed by Session Laws 1949, c. 720, s. 5
- § 45-31 Transferred to G.S. 45-21.41 by Session Laws 1949, c. 720, s. 4
- § 45-32 through 45-36 Transferred to G.S. 45-21.34 to 45-21.38 by Session Laws 1949, c. 720, s. 3
- § 45-36.1 Transferred to G.S. 45-21.42 by Session Laws 1949, c. 720, s. 4
Article 4 - Satisfaction.
- § 45-36.2 Obligation of good faith
Every action or duty within this Article imposes an obligation of good faith in its performance or enforcement. (1953, c. 848; 2005‑123, s. 1.)
- § 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...
- § 45-36.4 Definitions
As used in this Article, the following terms mean: (1) Address for giving a notification. For the purpose of a particular type of notification, the...
- § 45-36.5 Notification: manner of giving and effective date
(a) A person gives a notification by any of the following: (1) Depositing it with the United States Postal Service with first‑class postage paid or...
- § 45-36.6 Document of rescission: effect; liability for wrongful recording
(a) In this section, "document of rescission" means a document stating that an identified satisfaction or affidavit of satisfaction of a security instrument was recorded...
- § 45-36.7 Payoff statement: request and content
(a) An entitled person, or an agent authorized by an entitled person to request a payoff statement, may give to the secured creditor a notification...
- § 45-36.8 Understated payoff statement: correction; effect
(a) If a secured creditor determines that the payoff amount it provided in a payoff statement was understated, the creditor may send a corrected payoff...
- § 45-36.9 Secured creditor to submit satisfaction for recording; liability for failure
(a) A secured creditor shall submit for recording a satisfaction of a security instrument within 30 days after the creditor receives full payment or performance...
- § 45-36.10 Content and effect of satisfaction
(a) A document is a satisfaction of a security instrument if it does all of the following: (1) Identifies the type of security instrument, the...
- § 45-36.11 Satisfaction: form
No particular phrasing is required for a satisfaction of a security instrument. The following form, when properly completed, is sufficient to satisfy the requirements of...
- § 45-36.12 Limitation of secured creditor's liability
A secured creditor is not liable under this Article if it: (1) Established a reasonable procedure to achieve compliance with its obligations under this Article;...
- § 45-36.13 Eligibility to serve as satisfaction agent
No person other than an attorney licensed to practice law in the State of North Carolina may serve as a satisfaction agent under this Article....
- § 45-36.14 Affidavit of satisfaction: notification to secured creditor
(a) If a secured creditor has not submitted for recording a satisfaction of a security instrument and the security instrument has not been satisfied of...
- § 45-36.15 Affidavit of satisfaction: authorization to submit for recording
(a) Subject to subsections (b) and (c) of this section, a satisfaction agent may sign and submit for recording an affidavit of satisfaction of a...
- § 45-36.16 Affidavit of satisfaction: content
An affidavit of satisfaction of a security instrument must comply with all of the following: (1) Identify the type of security instrument, the original parties...
- § 45-36.17 Affidavit of satisfaction: form
No particular phrasing of an affidavit of satisfaction is required. The following form of affidavit, when properly completed, is sufficient to satisfy the requirements of...
- § 45-36.18 Affidavit of satisfaction: effect
(a) Upon recording, an affidavit substantially complying with the requirements of G.S. 45‑36.16 constitutes a satisfaction of the security instrument described in the affidavit. (b)...
- § 45-36.19 Liability of satisfaction agent
(a) Except as otherwise provided in subsection (b) of this section, a satisfaction agent or any person purporting to be a satisfaction agent that records...
- § 45-36.20 Trustee's satisfaction of deed of trust: content and effect
(a) Upon recording, a trustee's satisfaction substantially complying with the requirements of this section constitutes a satisfaction of the deed of trust described in the...
- § 45-36.21 Trustee's satisfaction of deed of trust: form
No particular phrasing is required for a trustee's satisfaction of a deed of trust. The following form, when properly completed, is sufficient to satisfy the...
- § 45-37 Satisfaction of record of security instruments
(a) Subject to the provisions of G.S. 45‑36.9(a) and G.S. 45‑73 relating to security instruments which secure future advances, any security instrument intended to secure...
- § 45-37.1 Validation of certain entries of cancellation made by beneficiary or assignee instead of trustee
In all cases where, prior to January 1, 1930, it appears from the margin or face of the record in the office of the register...
- § 45-37.2 Recording satisfactions of security instruments
(a) When a satisfaction document, affidavit of satisfaction, or trustee's satisfaction is recorded pursuant to G.S. 45‑37(a)(7), the register of deeds shall record and index...
- § 45-38 Recording of foreclosure
In case of foreclosure of any deed of trust, or mortgage, the trustee, mortgagee, or the trustee's or mortgagee's attorney shall record a notice of...
- § 45-39 Repealed by Session Laws 1949, c. 720, s. 5
- § 45-40 Repealed by Session Laws 2005-123, s. 1, effective October 1, 2005
- § 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...
- § 45-42 Satisfaction of corporate mortgages by corporate officers
All security instruments executed to a corporation may be satisfied and so marked of record as by law provided for the satisfaction of security instruments,...
- § 45-42.1 Corporate cancellation of lost mortgages by register of deeds
Upon affidavit of the secretary and treasurer of a corporation showing that the records of such corporation show that such corporation has fully paid and...
Article 5 - Miscellaneous Provisions.
- § 45-43 Real estate mortgage loans; commissions
Any individual or corporation authorized by law to do a real estate mortgage loan business may make or negotiate loans of money on notes secured...
- § 45-43.1 through 45-43.5 Repealed by Session Laws 1971, c. 1229, s. 1
- § 45-44 Mortgages held by insurance companies, banks, building and loan associations, or other lending institutions
A mortgage or deed of trust held by an insurance company, bank, building and loan association, or other lending institution shall be deemed, for the...
- § 45-45 Spouse of mortgagor included among those having right to redeem real property
Any married person has the right to redeem real property conveyed by his or her spouse's mortgages, deeds of trust and like security instruments and...
- § 45-45.1 Release of mortgagor by dealings between mortgagee and assuming grantee
Except where otherwise provided in the mortgage or deed of trust or in the note or other instrument secured thereby, or except where the mortgagor,...
- § 45-45.2 Transfer taxes not applicable
Notwithstanding any other provision of law, no excise tax on instruments conveying an interest in real property, except that levied by Article 8E of Chapter...
Article 6 - Uniform Trust Receipts Act.
Article 7 - Instruments to Secure Future Advances and Future Obligations.
- § 45-67 Definition
As used in this Article, "security instrument" means a mortgage, deed of trust, or other instrument relating to real property securing an obligation or obligations...
- § 45-68 Requirements
A security instrument, otherwise valid, shall secure future obligations which may from time to time be incurred thereunder so as to give priority thereto as...
- § 45-69 Fluctuation of obligations within maximum amount
Unless the security instrument provides to the contrary, if the maximum amount has not been advanced or if any obligation secured thereby is paid or...
- § 45-70 Priority of security instrument
(a) Any security instrument which conforms to the requirements of this Article shall, from the time and date of registration thereof, have the same priority...
- § 45-71 Satisfaction of the security instrument
Upon payment of all the obligations secured by a security instrument which conforms to the requirements of this Article and upon termination of all obligation...
- § 45-72 Termination of future optional advances
(a) The holder of a security instrument conforming to the provisions of this Article shall, at the request of the maker of the security instrument...
- § 45-73 Cancellation of record; presentation of notes described in security instrument sufficient
The provisions of G.S. 45‑37 apply to discharge of record of instruments executed under this Article except that in cases of cancellation by exhibition or...
- § 45-74 Article not exclusive
The provisions of this Article shall not be deemed exclusive, and no security instrument securing future advances or future obligations which is otherwise valid shall...
- § 45-75 through 45-79 Reserved for future codification purposes
Article 8 - Instruments to Secure Certain Home Loans.
Article 9 - Instruments to Secure Equity Lines of Credit.
- § 45-81 Definition
(a) The term "equity line of credit" means an agreement in writing between a lender and a borrower for an extension of credit pursuant to...
- § 45-82 Priority of security instrument
A mortgage or deed of trust which shows on its face that it secures an equity line of credit governed by the provisions of this...
- § 45-82.1 Extension of period for advances
(a) The period for advances agreed to pursuant to G.S. 45‑81(a)(1) may be extended by written agreement of the lender and borrower executed prior to...
- § 45-83 Future advances statute shall not apply
The provisions of Article 7 of this Chapter shall not apply to an equity line of credit or the instrument securing it, if the instrument...
- § 45-84 Article not exclusive
Except as otherwise provided in G.S. 45‑83, the provisions of this Article are not exclusive, and no mortgage or deed of trust which secures a...
Article 10 - Mortgage Debt Collection and Servicing.
- § 45-90 (Effective April 1, 2008) Definitions
As used in this Article, the following definitions apply: (1) Home loan. A loan secured by real property located in this State used, or intended...
- § 45-91 (Effective April 1, 2008) Assessment of fees; processing of payments; publication of statements
A servicer must comply as to every home loan, regardless of whether the loan is considered in default or the borrower is in bankruptcy or...
- § 45-92 (Effective April 1, 2008) Obligation of servicer to handle escrow funds
Any servicer that exercises the authority to collect escrow amounts on a home loan held or to be held for the borrower for insurance, taxes,...
- § 45-93 (Effective April 1, 2008) Borrower requests for information
The servicer shall make reasonable attempts to comply with a borrower's request for information about the home loan account and to respond to any dispute...
- § 45-94 (Effective April 1, 2008) Remedies
In addition to any equitable remedies and any other remedies at law, any borrower injured by any violation of this Article may bring an action...
- § 45-95 (Effective April 1, 2008) Severability
The provisions of this Article shall be severable, and if any phrase, clause, sentence, or provision is declared to be invalid or is preempted by...
