Satisfaction of Security Instruments
Documents such as deeds of trust and mortgages are recorded in the Register of Deeds Office to create or provide for an interest in real property to secure payment or performance of an obligation, whether or not it also creates or provides for a lien on personal property.Â These and other various documents are referred to under North Carolina law as security instruments.
When a security instrument is satisfied, it is common to record a document in order to terminate the effectiveness of the security instrument, thus giving the public notice that the lien against the real property has been released.
North Carolina law requires secured creditors to submit a satisfaction document for recording within 30 days of full payment or performance of the secured obligation.Â A secured creditor that is required to submit a satisfaction of a security instrument for recording and fails to do so within the period required by statute could be liable to the landowner for one thousand dollars ($1,000) and any reasonable attorneys’ fees and court costs.
Methods of satisfactions under North Carolina law are:
Satisfaction of a Security Instrument: A â€śSatisfaction of Security Instrumentâ€ť signed by the mortgagee, Deed of Trust Beneficiary or other secured creditor may be presented for recording.Â The “Satisfaction of Security Instrument” must be signed by the secured party and acknowledged by a Notary Public and contain all the information required by G.S. 45-36.10 and G.S. 45-37(a)(7). There is no fee for recording cancellation documents.
Trustees Satisfaction of Deed of Trust: The Trustee or Substitute Trustee may submit a â€śTrustees Satisfaction of Deed of Trust.â€ťÂ The “Trustee’s Satisfaction of Deed of Trust” must be signed by the Trustee or Substitute Trustee and acknowledged by a Notary Public and contain all the information required by G.S. 45-36.20 and G.S. 45-37(a)(7). There is no fee for recording cancellation documents.
Notice of Satisfaction: A trustee or mortgagee may submit a â€śNotice of Satisfactionâ€ť.Â The â€śNotice of Satisfactionâ€ť must be signed by the trustee or mortgagee and acknowledged by a Notary Public and contain all the information required by G.S. 47.46.1.Â There is no fee for recording cancellation documents.
Affidavit of Satisfaction: If a secured creditor fails to submit a satisfaction document as required by law, an attorney authorized to practice law in North Carolina, acting as â€śsatisfaction agentâ€ť may record an â€śAffidavit of Satisfactionâ€ť after having completed the statutory procedures for demanding a satisfaction document from the secured creditor.Â The â€śAffidavit of Satisfactionâ€ť must contain the information prescribed by G.S. 47.36.16 and can only be signed by the borrowerâ€™s attorney acting as their satisfaction agent.Â The satisfaction agentâ€™s signature must be acknowledged.
Fees : There is no fee for recording cancellation documents.
The following forms may be downloaded for your use.