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


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“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




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