SATISFACTION OF SECURITY INSTRUMENTS

Documents such as deeds of trust and mortgages are recorded in the Register of Deeds Office to creates or provides for an interest in real property to secure payment or performance of an obligation, whether or not it also creates or provides for a lien on personal property. These and other various documents are referred to under North Carolina law as security instruments.

When a security instrument is satisfied, it is common to record a document in order to terminate the effectiveness of the security instrument, thus releasing the lien against the real property.

Three methods of satisfactions under North Carolina law are:

First: The original Deed of Trust and original Promissory Note are submitted. Both must be marked “Paid and Satisfied” and must be signed by the appropriate party.

Second: The Trustee or Substitute Trustee may submit a “Trustees Satisfaction of Deed of Trust.”  The "Trustee's Satisfaction of Deed of Trust" must be signed by the Trustee or Substitute Trustee and acknowledged by a Notary Public and contain all the information required by G.S. 45-36.20 and G.S. 45-37(a)(7).

Third: A “Satisfaction of Security Instrument” signed by the mortgagee, Deed of Trust Beneficiary or other secured creditor may be presented for recording.  The "Satisfaction of Security Instrument" must be signed by the secured party and acknowledged by a Notary Public and contain all the information required by G.S. 45-36.10 and G.S. 45-37(a)(7). There is no fee for recording cancellation documents.

Fees : There is no fee for recording cancellation documents.

The following forms may be downloaded for your use.

•  Satisfaction of a Security Instrument

•  Trustee's Satisfaction of Deed of Trust

A complete copy of the North Carolina Mortgage Satisfaction Act SL 2005-123 (SB734 may be found at the following link:

www.ncleg.net/Sessions/2005/Bills/Senate/HTML/S734v5.html