September 2002

A PUBLICATION OR THE TITLE COMPANY OF NORTH CAROLINA

     

FTC/DOJ INQUIRY INTO UNAUTHORIZED PRACTICE OF LAW ISSUES – A FOLLOW UP 

In our August, 2002 issue, we discussed the Real Property Law Section's concerns – and our concerns – about these issues. Thereafter, on September 11, 2002, Adam Foodman, Chair of the Real Property Law Section, distributed two items of interest: (a) a "Proposed Authorized Practice Advisory Opinion On the Role of Laypersons in the Consummation of Residential Real Estate Transactions" and (b) a "Proposed Formal Ethics Opinion." These constitute a vast improvement over the earlier proposals that were of such concern to members of the bar closing residential transactions, The Title Company of North Carolina and others. The first proposal in (a) answers "no" the first issue of  "May a non-lawyer handle a residential real estate closing for one or more of the parties to the transaction" and answers "yes" the second issue of "May a non-lawyer who is not acting under the supervision of a lawyer licensed in North Carolina oversee the execution of documents and the disbursement of proceeds necessary to complete a North Carolina residential real estate closing?" As to the second issue, the proposal says: "So long as a non-lawyer does not engage in any of the activities referenced in Opinion 1, or in other activities that likewise constitute the practice of law, a non-lawyer may perform the following services to complete a residential real estate closing: (1) present and identify the necessary documents,

direct the parties where to sign, and ensure that the parties have properly executed the documents; and (2) receive and disburse the closing funds."  

The "Proposed Formal Ethics Opinion" cited in (b) above is entitled, "Delegation to Non-lawyer Assistant of Certain Tasks Associated with a Residential Real Estate Transaction" and states that "Proposed opinion rules that a non-lawyer assistant supervised by a lawyer may identify to the client who is a party to such a transaction the documents to be executed with respect to the transaction, direct the client as to the correct place on each document to sign, and handle the disbursement of proceeds for a residential real estate transaction, even though the supervising lawyer is not physically present."  

Please read the full text of the proposals, which is obviously not set out above. These proposals recognize the fact that a closing involves many things: a title exam, document preparation, legal interpretation, recording and disbursement. The opinions should be considered for adoption in October, 2002. 

 

 

 

CUMULATIVE INDEX – REVISED    

Our Second Annual cumulative index is set out below and covers our newsletters from 1997 to and including our September, 2002 issue. Let us know if you need past issues or have suggestions for future issues.

Acts Barring Rights of Spouse

July, 2000

Administration of Estates Issues – Judgments and Liens Against Devisee or Heir

January, 2000

Ad Valorem Taxes

April, 2002

Ad Valorem Taxes – Statement of Amount of Taxes Due – What You Get Might Not Be What You See (Or Think You Are Seeing)

April, 2001

ALTA Endorsement Forms 9, 9.1 and 9.2

January, 2000

Annexation

April, 2002

Anti-Lapse Statute

July, 2000

Anti-Lapse Statute (article on new statutes)

Issue 9, Fall 1999 (erroneously labeled Issue 7)

Anti-Lapse Statute Amended—Again

June, 2001

Anti-Lapse Statute and Columbo v. Stevenson

April, 2002 (second issue)

Attorney Acts As Notary

December, 2000

Bankruptcy - Effect of Discharge on Liens

Issue 1, Fall 1997

Bankruptcy - Failure to Properly Execute and Record and 11 U.S.C. §544 Avoidance Problems

June, 2002

Bankruptcy – Lien Avoidance Under 11 U.S.C. Sec. 522(f)

Issue 5, Fall 1998

Commonly Encountered Liens and Periods of Limitation

Issue 5, Fall 1998

Commonly Encountered Liens and Periods of Limitation (Cont.)

Issue 6, Winter 1999

Condominium Act Changes

Issue 6, Winter 1999

Corporate Conveyances; Seals; Statute of Limitations (article on new statutes)

Issue 9, Fall 1999 (erroneously labeled Issue 7)

Corporations and Limited Liability Companies – Dissolution and Suspension

February, 2000

Corporations and Limited Liability Companies – Senate Bill 842

February, 2002

Corporations Dealing Through Attorney-In-Fact

September, 2000

Decedent’s Estates – Elective Share Act Passes:  A New Act Already in Need of Amendment

October, 2000

Decedents’ Estates – Personal Representative’s Power to Sell Real Property; House Bill 716 Is Introduced

June, 2001

Deeds of Trust – Equity Lines of Credit and Certain Priority Problems

Issue 3, 1998

Deeds of Trust Modifications, Joinder and Other Issues – A Summary

Issue 5, Fall 1998

Deed of Trust – Simultaneous Recording

August, 2001

Deed of Trust – Title Insurance Company Assignee Sues Mortgagor

June, 2001

(Easements) Blevins v. Welch and Prescriptive Easements

June, 2000

Easements – Easement or Fee Simple – A Railroad Case

April, 2001

Easements and Rights of Way

April, 2002 (second issue)

Easements, Restrictions and Boathouses, Ramps, etc.

April, 2002 (second issue)

Easements – Zell, Creation of Easements and Statutory Revision

Issue 1, Fall 1997

Environmental Law - Land Use Restrictions and Public Health

April, 2002

Equitable Distribution

April, 2002

Equitable Distribution and Attachment of Liens

November, 2002

Estates and Personal Representatives

April, 2002

(Estates) Payment of Claims and G.S. 28A-19-6

June, 2000

Estates - Chapter 28A and House Bill 716

August, 2001

Estates – Renunciation, Disclaimer and Federal Tax Liens in View of Drye, Jr.

March, 2001

Estates – Sale, Lease or Mortgage of Real Property by Heirs or Devisees

June, 2000

Estates – Sales by Personal Representatives Pursuant to Power Contained in a Will and Related Problems

April, 2000

(Ethics) Proposed 2000 Formal Ethics Opinion 8 (October 18, 2000)

March, 2001

(Exchanges) Internal Revenue Service Adopts IRC Sec. 1031 Reverse Exchange Rules

October, 2000

Federal Tax Liens  Against One Spouse Where Property is Vested As Tenants by the Entirety and U.S. v. Craft, 535 U.S.____(U.S. Supreme Court, 2002 U.S. Lexis 2790, April 18, 2002

April, 2002

Federal Tax Liens – An update on Entirety Property, Partnership Property and Purchase Money Deed of Trust Aspects

June, 2002

Federal Tax Liens – Foreclosure of Deed of Trust and Subordinate Federal Tax Liens

December, 2000

Federal Tax Liens  vs. Purchase Money Deeds of Trust - An Update

November, 2002

FTC Activities - June 24, 2002 Report of The Special Committee (N.C. State Bar) on Real Estate Closings

June, 2002

FTC /DOJ Advocacy Letter of December 14, 2001 and The North Carolina State Bar's June 24, 2002 Response

August, 2002

FTC/DOJ Inquiry Into Unauthorized Practice of Law Issues - A Follow Up

September, 2002

Good Funds Settlement Act Amended

November, 2001

Homeowners' Associations - Planned Communities - Right to Enforce Restrictions

November, 2001

House Bill 716

October, 2001

Husband and Wife – Situations Involving Whether Spouse of Owner Must Join in Conveyance

Issue 2, Spring 1998

Inheritance and Estate Tax – Changes in Statutes; Assistance in Clearing Title

Issue 7, Spring 1999

Insured Closing Protection Letters

April, 2002 (second issue)

John Noblitt

June, 2002

Judgments – Summary Judgments, Interlocutory in Nature

April, 2001

Judicial and Execution Sales Procedure Revised

April, 2002

Leaseholds - ALTA Changes Leasehold Coverage

November, 2001

Legislative Update

April, 2002 (second issue)

Lenders and Home Loans

April, 2002

Loan Payoffs – How the UCC and a Complex Set of Facts Can Make a Big Impact

December, 2000

Manufactured Homes - House Bill 253 Passes

January, 2002

Mechanics’ Liens:  Material Supplier is Also Construction Lender – What Next?

Issue 4, Summer 1998

(Mechanics’ Liens – Voluntary Dismissal Without Prejudice of Suit to Enforce; Effect of Judgment Lien; “Bonding Off”)—Did You Know That

Issue 3, 1998

Mergers, Conversions, Consolidations, and Name Changes

Issue 11, Winter 1999 (erroneously labeled Issue 9)

Mobile Homes, Manufactured Housing Units and Modular Homes

Issue 4, Summer 1998

Mobile Homes, Manufactured Housing Units and Modular Homes – Update on Briggs v. Rankin

Issue 5, Fall 1998

New Laws

April, 2002

North Carolina’s New Vacation Rental Act

Issue 10, Fall 1999 (erroneously labeled Issue 8)

North Carolina Land Title Association (NCLTA) Legislative Agenda Continued

August, 2002

North Carolina Planned Community Act Passes

Issue 6, Winter 1999

Notaries

April, 2002

(Notaries) Session Law 1998 – Ch. 228 Senate Bill 1552 Passes – Some Highlights

Issue 6, Winter 1999

Options to Purchase - Timely Exercise as Between the Parties and as Against Parties

June, 2002

(Paralegals) – Proper Supervision of Paralegals is Critical

October, 2000

Partition Sales By Tenants In Common - Notice and Setting Aside Sales

November, 2001

Partnerships, Contracts, Constructive Trust and Lis Pendens

April, 2002 (second issue)

Planned Community Act – Amendment of Restrictive Covenants

March, 2001

(Planned Communities and Condominiums) – Did You Know That (Discusses easements over common elements)

March, 2001

Powers of Attorney – Selected Issues

March, 2000

President's Message - North Carolina and Title Association (NCLTA) to Propose Legislative Agenda

February, 2002

Purchase Money Mortgages and Deeds of Trust – Joinder and Priority Issues

Issue 2, Spring 1998

Real Property Section of the North Carolina Bar Association

April, 2001

Recorded Plats – “Open Spaces”

July, 2000

Register of Deeds Changes; Entity Reinstatement - House Bill 1073 Passes

October, 2001

Restrictions – Karner v. Flowers

June, 2000

Restrictive Covenants - Automatic Renewal and Amendment

August, 2002

Restrictive Covenants - Enforcement and Medearis v. Trustees of Myers Park Baptist Church, et al

April, 2002

Restrictive Covenants - Enforcement as Affected by Radical Change, Waiver and Estoppel: The Medearis Case

February, 2002

Restrictive Covenants – Resubdivision and Assessments

June, 2001

Restrictive Covenants – Re-Subdivision of Lots, the “One House on One Lot” Restriction and Donaldson v. Shearin

April, 2001

Restrictive Covenants - Using a Subdivision Lot for a Street or Access Way

August, 2001

Rights of Way - New G.S. 136-96.1 and G.S. 136-44.7(c)

April, 2002

Rule Against Perpetuities and Contracts

June, 2002

Sarah Friede Joins TCNC’s Wilmington Office

June, 2000

Sam Mann

February, 2000

(Scrivener’s Error Statute) More on the Scrivener’s Error Statute and Related Issues

July, 2000

(Scrivener’s Error Statute) G.S. 47-36.1 and Correcting Errors in Recorded Instruments

Issue 10, Fall 1999 (erroneously labeled Issue 8)

Slayer Statute (article on new statutes)

Issue 9, Fall 1999 (erroneously labeled Issue 7)

Subordination Agreements - Part 1

October, 2001

Subordination Agreements - Part 2

November, 2001

Survey Coverage Under Title Insurance Policies

August, 2000

The Title Company of North Carolina, Inc. – Charlotte Office Changes

Issue 7, Spring 1999

The Title Company’s Title Insurers

Issue 8, Summer 1999 (erroneously labeled Issue 4)

Title Insurance – Continuation of Coverage After Foreclosure or Deed in Lieu

Issue 1, Fall 1997

Title Insurance – Continuation of Coverage Under Owner’s Policy

Issue 7, Spring 1999

Trusts – Conveyance Aspects From a Title Insurer’s Perspective

Issue 8, Summer 1999 (erroneously labeled Issue 4)

Trusts (new statutes)

Issue 9, Fall 1999 (erroneously labeled Issue 7)

Trusts and Trustees

April, 2002

(UCC) Revision of Article 9 of UCC (Senate Bill 1305) Passes

August, 2000

Uniform Electronic Transactions Act

April, 2002

Uniform Electronic Transactions Act Passes

August, 2000

Zoning Endorsements

Issue 11, Winter 1999 (erroneously labeled Issue 9)

Back to Top