H1061 Summary

• Updates North Carolina statutes to recognize tenancy by the entirety for same-sex married couples following the federal court decision in General Synod of the United Church of Christ v. Resinger (October 10, 2014), with changes effective retroactively to that date.

• Replaces gender-specific language ("husband and wife") with gender-neutral terms ("spouses," "individuals married to each other," "married grantor") throughout statutes governing property conveyances, marital property control, and trust arrangements (G.S. 39-13.3, 39-13.6, 39-13.7, 41-2, 41-2.5).

• Expands the definition of purchase-money mortgages and deeds of trust to include loans from third-party lenders (not just seller financing) used to purchase real property, which do not require the spouse to join in execution.

• Extends exemptions for household furnishings and life estates from creditors' claims to apply when the property is encumbered by purchase-money mortgages or deeds of trust, regardless of whether the lender is the property seller or a third party.

• Applies mortgage and deed of trust changes to instruments entered into on or after the bill's enactment date.