(a)        The following transfers are exempt from the provisions of this Chapter:

(1)        Transfers pursuant to court order, including transfers ordered by a court in administration of an estate, transfers pursuant to a writ of execution, transfers by foreclosure sale, transfers by a trustee in bankruptcy, transfers by eminent domain, and transfers resulting from a decree for specific performance.

(2)        Transfers to a beneficiary from the grantor or his successor in interest in a deed of trust, or to a mortgagee from the mortgagor or his successor in interest in a mortgage, if the indebtedness is in default; transfers by a trustee under a deed of trust or a mortgagee under a mortgage, if the indebtedness is in default; transfers by a trustee under a deed of trust or a mortgagee under a mortgage pursuant to a foreclosure sale, or transfers by a beneficiary under a deed of trust, who has acquired the real property at a sale conducted pursuant to a foreclosure sale under a deed of trust.

(3)        Transfers by a fiduciary in the course of the administration of a decedent‘s estate, guardianship, conservatorship, or trust.

(4)        Transfers from one or more co-owners solely to one or more other co-owners.

(5)        Transfers made solely to a spouse or a person or persons in the lineal line of consanguinity of one or more transferors.

(6)        Transfers between spouses resulting from a decree of divorce or a distribution pursuant to Chapter 50 of the N.C. Gen. Stat. or comparable provision of another state.

(7)        Transfers made by virtue of the record owner‘s failure to pay any federal, State, or local taxes.

(8)        Transfers to or from the State or any political subdivision of the State.

(b)        The following transfers are exempt from the provisions of N.C. Gen. Stat. § 47E-4 but not from the requirements of N.C. Gen. Stat. § 47E-4.1:

(1)        Transfers involving the first sale of a dwelling never inhabited.

(2)        Lease with option to purchase contracts where the lessee occupies or intends to occupy the dwelling.

(3)        Transfers between parties when both parties agree not to complete a residential property disclosure statement or an owners’ association and mandatory covenants disclosure statement. ?(1995, c. 476, s. 1; 2011-362, s. 3(a); 2014-120, s. 49(a).)

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Terms Used In North Carolina General Statutes 47E-2

  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Decedent: A deceased person.
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Fiduciary: A trustee, executor, or administrator.
  • 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
  • Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
  • Grantor: The person who establishes a trust and places property into it.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Mortgagee: The person to whom property is mortgaged and who has loaned the money.
  • Mortgagor: The person who pledges property to a creditor as collateral for a loan and who receives the money.
  • Owner: means each person having a recorded present or future interest in real estate that is identified in a real estate contract subject to this Chapter; but shall not mean or include the trustee in a deed of trust, or the owner or holder of a mortgage, deed of trust, mechanic's or materialman's lien, or other lien or security interest in the real property, or the owner of any easement or license encumbering the real property. See North Carolina General Statutes 47E-3
  • property: shall include all property, both real and personal. See North Carolina General Statutes 12-3
  • 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
  • Trustee: A person or institution holding and administering property in trust.
  • Writ: A formal written command, issued from the court, requiring the performance of a specific act.
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