Assignment of Deed of Trust and Note
(Commercial) (NC)

Summary

This template is an assignment of deed of trust and note that may be used to assign and transfer an existing deed of trust on North Carolina real property from the current lender to a new lender. This template includes practical guidance and drafting notes. Assignment of deeds of trust should be recorded in the same place as the deed of trust was originally recorded, which is in the office of the county clerk in the county where the subject property is located. See N.C. Gen. Stat. § 47-20.1. With respect to formatting, North Carolina law states that the recorder's office may charge an additional fee if a document submitted for recording does not comply with the following requirements: • Be on 8.5 x 11 or 8.5 x 14 inch white paper • Contain legible print • Be in black ink typed or printed in a font size no smaller than 9 points • Have a three-inch blank margin at the top of the first page • Have blank margins of at least one-half inch on the remaining sides of the first page and on all sides of subsequent pages • Have text typed or printed on one side of a page only • Have the type of instrument identified at the top of the first page See N.C. Gen. Stat. § 161-14. Additionally, the name and address of the person who prepared and drafted the assignment should be printed on the first page. See N.C. Gen. Stat. § 47-17.1. For further information on recording requirements in North Carolina, see Commercial Real Estate Financing (NC). Promissory notes are negotiable instruments under the North Carolina Uniform Commercial Code. See N.C. Gen. Stat. § 25-3-104. A note should be assigned by indorsement, either to a named assignee or through an indorsement in blank in which the holder of the note is whoever is currently in possession of the note. An ""allonge"" stating ""pay to the order of"" may be attached to a promissory note to achieve an indorsement. See N.C. Gen. Stat. § 25-3-204. A separate assignment of the related deed of trust must be recorded in the county land records where the deed of trust was recorded. North Carolina courts have held that the promise to pay a deed of trust is also a promise to pay a promissory note secured by such deed of trust. However, the evidence of transfer is strictly construed, and particularly if there is a power of sale clause, separate documents should be prepared to assign the note and the deed of trust. See In re Foreclosure of a Deed of Tr. Executed by Hannia M. Adams & H. Clayton Adams, 204 N.C. App. 318, 693 S.E.2d 705 (2010). For a North Carolina allonge template, see Allonge to Note (Commercial) (NC). For further guidance on recording an assignment of deed of trust in North Carolina, see Commercial Real Estate Financing (NC). For further information on promissory notes, see Promissory Notes (Acquisition Loan). For information on the Uniform Real Property Electronic Recording Act, see Uniform Real Property Electronic Recording Act State Law Survey. See also N.C. Gen. Stat. § 47-16.4.