§ 45-36.6. Document of rescission: effect; liability for wrongful recording. - North Carolina Statutes

§ 45‑36.6.  Document ofrescission: effect; liability for wrongful recording.

(a)        In this section,"document of rescission" means a document stating that an identifiedsatisfaction or affidavit of satisfaction of a security instrument was recordederroneously or that a security instrument was satisfied of record erroneously,the secured obligation remains unsatisfied, and the security instrument remainsin force.

(b)        If a person recordsa satisfaction or affidavit of satisfaction of a security instrument in erroror if a security instrument is satisfied of record erroneously by any othermeans, the person or the secured creditor may execute and record a document ofrescission. The document of rescission must be duly acknowledged before anofficer authorized to make acknowledgments. Upon recording, the documentrescinds an erroneously recorded satisfaction or affidavit and the erroneoussatisfaction of record of the security instrument and reinstates the securityinstrument.

(c)        A recorded documentof rescission has no effect on the rights of a person that:

(1)        Records an interestin the real property described in a security instrument after the recording ofthe satisfaction or affidavit of satisfaction of the security instrument or theerroneous satisfaction of record of the security instrument by other means andbefore the recording of the document of rescission; and

(2)        Would otherwise havepriority over or take free of the lien created by the security instrument asreinstated under Chapter 47 of the General Statutes.

(d)        A person thaterroneously or wrongfully records a document of rescission is liable to anyperson injured thereby for the actual loss caused by the recording andreasonable attorneys' fees and costs. (2005‑123, s. 1; 2006‑259, s. 52(b); 2006‑264,s. 40(a).)