(a)        The settlement agent shall cause recordation of the deed, if any, the deed of trust or mortgage, or other loan documents required to be recorded at settlement. The settlement agent shall not disburse any of the closing funds prior to verification that the closing funds used to fund disbursement are deposited in the settlement agent’s trust or escrow account in one or more forms prescribed by this Chapter. A settlement agent may disburse funds from the settlement agent’s trust or escrow account (to either the applicable register of deeds or directly to a private company authorized to electronically record documents with the office of the register of deeds) as necessary to record any deeds, deeds of trust, and any other documents required to be filed in connection with the closing, including excise tax (revenue stamps) and recording fees, but the settlement agent shall not disburse any other funds from its trust or escrow account until the deeds, deeds of trust, and other required loan documents have been recorded in the office of the register of deeds. Unless otherwise provided in this Chapter, a settlement agent shall not cause a disbursement of settlement proceeds unless those settlement proceeds are collected funds. Notwithstanding that a deposit made by a settlement agent to its trust or escrow account does not constitute collected funds, the settlement agent may cause a disbursement of settlement proceeds from its trust or escrow account in reliance on that deposit if the deposit is in one or more of the following forms:

(1)        A certified check.

(2)        A check issued by the State, the United States, a political subdivision of the State, or an agency or instrumentality of the United States, including an agricultural credit association.

(3)        A cashier’s check, teller’s check, or official bank check drawn on or issued by a financial institution insured by the Federal Deposit Insurance Corporation or a comparable agency of the federal or state government.

(4)        A check drawn on the trust account of an attorney licensed to practice in North Carolina.

(5)        A check or checks drawn on the trust or escrow account of a real estate broker licensed under Chapter 93A of the N.C. Gen. Stat..

(6)        A personal or commercial check or checks in an aggregate amount not exceeding five thousand dollars ($5,000) per closing if the settlement agent making the deposit has reasonable and prudent grounds to believe that the deposit will be irrevocably credited to the settlement agent’s trust or escrow account.

(7)        A check drawn on the account of or issued by a mortgage lender licensed under Article 19B of Chapter 53 of the N.C. Gen. Stat..

(b)        If the settlement agent receives information from the lender as provided in N.C. Gen. Stat. § 45A-5(b) or otherwise has actual knowledge that a mortgage broker or other person acted as a mortgage broker in the origination of the loan, the settlement agent shall place an entry on page 1 of the deed of trust showing the name of the mortgage broker or other person that acted as a mortgage broker in the origination of the loan. Information pertaining to the identity of the mortgage broker or other person that acted as a mortgage broker in the origination of the loan is not confidential information. The term “mortgage broker” has the same meaning as provided in N.C. Gen. Stat. § 53-244.030 ?(1995 (Reg. Sess., 1996), c. 714, s. 1; 2001-420, ss. 1, 2; 2007-176, s. 1; 2014-115, s. 36; 2021-93, s. 1.)

Terms Used In North Carolina General Statutes 45A-4

  • Bank: means a financial institution, including but not limited to a national bank, state chartered bank, savings bank, or credit union that is insured by the Federal Deposit Insurance Corporation or a comparable agency of the federal or state government. See North Carolina General Statutes 45A-3
  • Certified check: means a check with respect to which the drawee bank certifies by signature on the check of an officer or other authorized employee of the bank that (i) the signature of the drawer on the check is genuine and the bank has set aside funds that are equal to the amount of the check and will be used to pay the check or (ii) the bank will pay the check upon presentment. See North Carolina General Statutes 45A-3
  • Closing: means the time agreed upon by the purchaser, seller, and lender (if applicable), when the execution and delivery of the documents necessary to consummate the transaction contemplated by the parties to the contract occurs, and includes a loan closing. See North Carolina General Statutes 45A-3
  • Closing funds: means the gross or net proceeds of the real estate transaction, including any loan funds, to be disbursed by the settlement agent as part of the disbursement of settlement proceeds on behalf of the parties. See North Carolina General Statutes 45A-3
  • Collected funds: means funds deposited and irrevocably credited to a settlement agent's account used to fund the disbursement of settlement proceeds which account is a trust account, escrow account, or an account held by a company or its subsidiary which is licensed and supervised by the North Carolina Commissioner of Banks. See North Carolina General Statutes 45A-3
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Disbursement of settlement proceeds: means the payment of all closing funds from the transaction by the settlement agent to the persons or entities entitled to that payment. See North Carolina General Statutes 45A-3
  • Escrow: Money given to a third party to be held for payment until certain conditions are met.
  • following: when used by way of reference to any section of a statute, shall be construed to mean the section next preceding or next following that in which such reference is made; unless when some other section is expressly designated in such reference. See North Carolina General Statutes 12-3
  • Lender: means any person or entity engaged in making or originating loans secured by mortgages or deeds of trust on real estate. See North Carolina General Statutes 45A-3
  • Loan documents: means the note evidencing the debt due to the lender, the deed of trust or mortgage to secure that debt to the lender, and any other documents required by the lender to be executed by the borrower as part of the loan closing transaction. See North Carolina General Statutes 45A-3
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Settlement: means the time when the settlement agent has received the duly executed deed, deed of trust or mortgage, and other loan documents and funds required to carry out the terms of the contracts between the parties. See North Carolina General Statutes 45A-3
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • Settlement agent: means the person or persons responsible for conducting the settlement and disbursement of the settlement proceeds, and includes any individual, corporation, partnership, or other entity conducting the settlement and disbursement of the closing funds. See North Carolina General Statutes 45A-3
  • state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories, so called; and the words "United States" shall be construed to include the said district and territories and all dependencies. See North Carolina General Statutes 12-3
  • Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
  • United States: shall be construed to include the said district and territories and all dependencies. See North Carolina General Statutes 12-3
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