NC/SC Boundary Realignment

“Now that we’re not in South Carolina anymore…

“Now that we’re not in South Carolina anymore…

… what are you doing to fix it?”

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Line originally surveyed in 1772 44Trees Marked OnlyNo bearings or distancesCongressional consent required for RelocationNC/SC Boundary Commissions:

Formed joint commissionStarted work 18 years ago

Task – Determine true location of the Boundary.

NC/SC Boundary Realignment

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Major ramifications:Title documentation in wrong StateHow does title pass by operation of

lawAnti-deficiency statute Tenancy by the EntiretyJTWROS N.C.G.S. Section 29-30 marital rights

NC/SC Boundary Realignment

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Major ramifications - Regulatory Authority over:

Roads and highways,

Utilities

water, sewer, electric, gas, telephone and cable

Utility service territories

Plants, Lines and Easements

Property taxes (real, personal and business),

ABC taxes,

Franchise and license taxes,

Sale of regulated goods (fireworks), etc.

Mail, police, fire and EMT protection/jurisdiction

School districts and in-state tuition.

NC/SC Boundary Realignment

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Major ramifications - Regulatory Authority over:Licensing

Vehicles and drivers

Businesses and professions

Examples:

One doctor’s office located where not licensed

Boundary gas station selling fireworks/alcohol is no longer properly licensed

Reportedly can’t qualify in state where located.

NC/SC Boundary Realignment

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South Carolina Approach 45

Separate drafts addressing issues

Limits application;

North Carolina Border Counties east of Greenville Co.

Spartanburg, Cherokee, York, Lancaster, Chesterfield, Marlboro, Dillon and Horry.

NC/SC Boundary Realignment

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South Carolina Approach 45

Clerks of court, registers of deeds must provide notice

To attorneys and others

Normally utilized to provide general notices

Clerks of court, registers of deeds must record “Notice of Boundary Clarification”

All prior legal interests determined by NC law

All prior Mortgages foreclosed in state where entered

NC/SC Boundary Realignment

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North Carolina Approach 46

NC Boundary Commissions ad hoc committee

North Carolina Land Title Association,

North Carolina Secretary of State

North Carolina Attorney General

Local Government Division, NCDOR

North Carolina Association of Assessing Officers

North Carolina Association of Tax Collectors

North Carolina Register of Deeds Association

NCBA, Real Property Section

NC/SC Boundary Realignment

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NC Boundary Commission ad hoc committee 46

Various Drafting proposals considered:

Record copies of all muniments of a full chain of title

Expensive

Time consuming

Record thirty Year search only

Less expensive

Misses too much in non urban properties

Too many encumbrances not cut of by MTA

North Carolina Approach

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NC Boundary Commission ad hoc committee 47

Proposed Draft of Statute

Defines Terms and is generic

Three Prong Approach

First Prong:

“Notice of State Boundary Abutter” May be filed by anyone claiming interest in affected lands

Filing only operates as a record notice

In effect - just a place holder

Does not establish title

North Carolina Approach

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NC Boundary Commission Proposed Draft 48

Second Prong:

“Affidavit of Title of State Boundary Abutter”

Title opinion

May be filed by qualified attorney only60 year search

Liability Provisions

Reliance Provisions

Notice Requirements

Perjury Penalties Applicable

North Carolina Approach

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NC Boundary Commission Proposed Draft 48

Third Prong:

“Chapter 45 modified:

Permit mortgagees to appoint a trustee

Mortgagee will be entitled to bid at a foreclosure

Mortgagee may record the “Notice” and “Affidavit”

North Carolina Approach

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NC Boundary Commission Proposed Draft 50

Notes:

Unrecorded Mortgages Enforceable in NCCommence an action

File Notice of Lis Pendens

File “Affidavit”

Tribal Lands expressly omitted

Other issues not addressed in draft at this point

North Carolina Approach

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Taxes:

Local Government Division NCDOR interpretation

G.S.105-287 permits County tax offices to elect:

NOT to pursue omitted taxes

Not to issue refunds if taxpayers seek one

May proceed per N.C.G.S. Section 105-287,

Make required changes effective 2014 forward

Except when new boundary incorporated in new plat

North Carolina Approach

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