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

“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?”

Line originally surveyed in 1772 44

• Line originally surveyed in 1772 44

• Trees Marked Only

• No bearings or distances

• Congressional consent required for Relocation

• NC/SC Boundary Commissions:

• Formed joint commission
• Started work 18 years ago

• Task – Determine true location of the Boundary.

Major ramifications:

• Major ramifications:

• Title documentation in wrong State
• How does title pass by operation of law
• Anti-deficiency statute
• Tenancy by the Entirety
• JTWROS
• N.C.G.S. Section 29-30 marital rights

Major ramifications - Regulatory Authority over:

• 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.

Major ramifications - Regulatory Authority over:

• 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.

South Carolina Approach 45

• 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.

South Carolina Approach 45

• 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

North Carolina Approach 46

• 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 Boundary Commission ad hoc committee 46

• 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

NC Boundary Commission ad hoc committee 47

• 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

NC Boundary Commission Proposed Draft 48

• NC Boundary Commission Proposed Draft 48

• Second Prong:

• “Affidavit of Title of State Boundary Abutter”
• Title opinion
• May be filed by qualified attorney only
• 60 year search
• Liability Provisions
• Reliance Provisions
• Notice Requirements
• Perjury Penalties Applicable

NC Boundary Commission Proposed Draft 48

• 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”

NC Boundary Commission Proposed Draft 50

• NC Boundary Commission Proposed Draft 50

• Notes:

• Unrecorded Mortgages Enforceable in NC
• Commence an action
• File Notice of Lis Pendens
• File “Affidavit”
• Tribal Lands expressly omitted
• Other issues not addressed in draft at this point

Taxes:

• 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