September 2002
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September 2002 |
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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.
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| 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
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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
199
|
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
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Commonly Encountered Liens and Periods
of Limitation
|
Issue 5, Fall 1998
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Commonly Encountered Liens and Periods
of Limitation (Cont.)
|
Issue 6, Winter 1999
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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
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Decedent’s Estates – Elective Share
Act Passes: A New Act Already
in Need of Amendment
|
October, 2000
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Decedents’ Estates – Personal
Representative’s Power to Sell Real Property; House Bill 716 Is
Introduced
|
June, 2001
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Deeds of Trust – Equity Lines of
Credit and Certain Priority Problems
|
Issue 3, 1998
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Deeds of Trust Modifications, Joinder
and Other Issues – A Summary
|
Issue 5, Fall 1998
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Deed of Trust – Simultaneous Recording |
August, 2001
|
Deed of Trust – Title Insurance
Company Assignee Sues Mortgagor
|
June, 2001
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(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
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Estates - Chapter 28A and House Bill 716 |
August, 2001 |
Estates – Renunciation, Disclaimer and
Federal Tax Liens in View of Drye,
Jr.
|
March, 2001
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Estates – Sale, Lease or Mortgage of
Real Property by Heirs or Devisees
|
June, 2000
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Estates – Sales by Personal
Representatives Pursuant to Power Contained in a Will and Related Problems
|
April, 2000
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(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
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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
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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
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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
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(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
19
|
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
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Options to Purchase - Timely Exercise as Between the Parties and as Against Parties |
June, 2002 |
(Paralegals) – Proper Supervision of
Paralegals is Critical
|
October, 2000
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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
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(Planned Communities and Condominiums)
– Did You Know That (Discusses easements over common elements)
|
March, 2001
|
Powers of Attorney – Selected Issues
|
March, 2000
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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
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Recorded Plats – “Open Spaces”
|
July, 2000
|
Register of Deeds Changes; Entity Reinstatement - House Bill 1073 Passes |
October, 2001 |
Restrictions – Karner
v. Flowers
|
June,
20
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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
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Sam Mann
|
February
|
(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
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The Title Company of North Carolina,
Inc. – Charlotte Office Changes
|
Issue 7, Spring 1999
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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
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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
|
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Uniform Electronic Transactions Act |
April, 2002 |
Uniform Electronic Transactions Act
Passes
|
August, 2000
|
Zoning Endorsements
|
Issue 11, Winter 1999 (erroneously
labeled Issue 9)
|