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HB 361

Fight Deed and Title Fraud/Funds.

2025-2026 Session Introduced by Eric Ager and 25 co-sponsors

One-time funds for FY 2025-26 to train county deeds staff, launch a public awareness campaign, and upgrade digitization and security at deeds offices to curb fraud.

Passed 1st Reading
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Bill Summary · HB 361

Summary — HB 361: Funds to Fight Deed and Title Fraud

Status: Passed 1st Reading; effective date July 1, 2025 (one‑time/nonrecurring FY 2025–2026 appropriations)

Purpose

Provide targeted, nonrecurring state funding to prevent, detect, and deter deed and title fraud by: 1) training register of deeds staff, 2) launching a statewide public awareness campaign, and 3) funding technology, digitization, and security upgrades for county register of deeds offices.

Key provisions and dollar amounts

All appropriations are nonrecurring and allocated for the 2025–2026 fiscal year.

  • $1,800,000 to the Department of the Secretary of State

    • Use: Antifraud training for county register of deeds employees (to be delivered in collaboration with the North Carolina Association of Registers of Deeds).
    • Up to 10% may be used for administrative costs.

  • $500,000 to the Department of Justice

    • Use: Create and launch a statewide public awareness campaign on real‑property fraud.

  • $30,000,000 to the Department of Information Technology (DoIT)

    • Use: Need‑based grants to county register of deeds offices, distributed according to specified maximum shares of the $30M:
    • Up to 40% ($12,000,000) — scanning equipment and digitization/storage of records (including IDs, passports, etc.)
    • Up to 15% ($4,500,000) — software upgrades
    • Up to 10% ($3,000,000) — cloud storage and backup
    • Up to 10% ($3,000,000) — digital security enhancements
    • Up to 8% ($2,400,000) — staff training
    • Up to 15% ($4,500,000) — network and hardware improvements (including integration with Secretary of State and municipal tax systems)
    • Up to 2% ($600,000) — DoIT administrative costs
    • DoIT must develop grant criteria and an application process.

  • $1,000,000 to DoIT (separate)

    • Use: Need‑based grants for counties that do not have a fraud detection alert system in place as of the act’s effective date.
    • DoIT must create an application process for these grants.

Who is affected

  • Primary: County registers of deeds offices (technology, staffing, record workflows).
  • Secondary: Property owners, title companies, real estate professionals, local law enforcement, Secretary of State and Department of Justice (in program oversight/awareness efforts).
  • Fiscal: State General Fund (one‑time appropriations for FY 2025–2026).

Implementation and timeline

  • Effective July 1, 2025.
  • DoIT and Secretary of State must establish application/award processes and coordinate with the NC Association of Registers of Deeds.
  • Funds are nonrecurring — ongoing operations (maintenance, subscriptions, staffing) beyond FY 2025–2026 would require additional funding or local support.

Potential impacts and considerations

  • Expected benefits: improved record digitization, faster detection of fraudulent filings, stronger cybersecurity and backups, better-trained deed office staff, and heightened public awareness — collectively reducing deed/title fraud risk.
  • Risks/limitations: one‑time funding may not sustain long‑term maintenance, training refreshers, or ongoing alert services; smaller counties may need technical assistance to apply and implement upgrades; program success depends on DoIT’s grant criteria and timely distribution of funds.

Compiled from official sources — confirm details with the bill’s official record.

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