Can a paralegal prepare and record a deed in an attorney state or does it have to be an attorney? – North Carolina

Short Answer

In North Carolina, drafting a deed for someone else is the practice of law and must be done by a North Carolina-licensed attorney. A paralegal may help only under the direct supervision of that attorney. Anyone can physically submit a properly executed deed for recording at the Register of Deeds, but the instrument must meet North Carolina’s formatting, notarization, and tax requirements.

Understanding the Problem

You want to transfer North Carolina real estate into a trust formed in another state and asked whether a paralegal can prepare or file the quitclaim deed in an “attorney state.” This question sits in North Carolina real estate law: whether a nonlawyer may prepare the deed, and who can record it with the Register of Deeds.

Apply the Law

North Carolina treats preparing deeds for others as the practice of law. That legal work must be performed by a North Carolina-licensed attorney. Paralegals can assist only under an attorney’s supervision, with the attorney responsible for the content and compliance. Recording, by contrast, is ministerial: the Register of Deeds accepts eligible documents that meet statutory form, acknowledgment, and tax-payment rules. For land located in North Carolina, the deed must be recorded in the county where the property lies, and priority follows a pure “race” rule—first to record without regard to notice.

Key Requirements

• Attorney drafting: Only a North Carolina-licensed attorney may prepare a deed for another; paralegals may assist under that attorney’s direction.
• Execution and notarization: The grantor must sign; a North Carolina-compliant acknowledgment by a notary is required.
• Content and form: Include correct parties/capacities (e.g., trustee of the trust), a sufficient legal description, return information, and county-required formatting.
• Taxes and fees: Pay the state excise tax (if applicable) and recording fees at submission; exemptions depend on the specifics.
• County of recording and priority: Record with the Register of Deeds where the land is located; priority generally goes to the first recorded deed.

What the Statutes Say

• North Carolina Gen. Stat. § 84-2.1 (Definition of practice of law) – Includes preparing deeds for others.
• North Carolina Gen. Stat. § 84-4 (Unauthorized practice) – Prohibits nonlawyers from practicing law.
• North Carolina Gen. Stat. § 47-18 (Race recording statute) – First to record generally prevails.
• North Carolina Gen. Stat. § 105-228.28 (Excise tax on conveyances) – Deed transfer tax due unless an exception applies.

Analysis

Apply the Rule to the Facts: Because your deed will convey North Carolina real estate, a North Carolina attorney must draft it—even if the trust was formed in another state. That attorney should ensure the grantee is properly identified (typically the trustee, in trust capacity), the legal description is sufficient, and the deed’s acknowledgment meets North Carolina requirements. A paralegal may assist only under that attorney’s supervision. Once executed and notarized, you or your agent (including a paralegal or courier) may submit the deed for recording in the North Carolina county where the property is located, with any transfer tax declarations and fees.

Process & Timing

1. Who files: Owner or authorized agent. Where: Register of Deeds in the North Carolina county where the land lies. What: Executed deed with proper acknowledgment, legal description, and required tax/fee submissions; county formatting must be met. When: Record promptly after execution to protect priority under North Carolina’s race statute.
2. The Register of Deeds reviews for form, acknowledgment, taxes, and fees, then records and indexes the deed. Turnaround is typically same day to a few days; eRecording may be faster (varies by county).
3. Obtain a recorded copy and confirm indexing. Notify relevant parties (lender, insurer, HOA) if needed and update tax mailing and insurance records.

Exceptions & Pitfalls

• Unauthorized practice: An unsupervised paralegal drafting a deed for another is not allowed. Ensure a North Carolina attorney prepares and reviews the deed.
• Trust grantee wording: Title typically vests in the trustee, not the abstract “trust.” Use correct trustee name and trust identifiers to avoid rejection or title defects.
• Acknowledgment defects: Missing or incorrect notarization, wrong venue, or incomplete certificates can cause rejection or future title issues.
• Taxes/fees: Deeds often require excise tax and recording fees; exemptions depend on the transaction’s specifics. Underpayment can delay recording.
• Mortgage and due-on-sale: Moving title into a trust can implicate lender covenants. Review loan documents and coordinate with the lender if needed.

Talk to a Real Estate Attorney

If you’re transferring North Carolina real estate into a trust and want the deed prepared and recorded correctly, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at [919-341-7055].

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.