N.C. Ct. of Appeals: Bank of America v. Charlotte Property Investments- Incorrect Legal Description Insufficient to Defeat Deed of Trust

Summary: Gathings granted a Deed of Trust to Countrywide, later succeeded by Bank of America. The Deed of Trust included the correct Property Identification Number and physical address, but had an incorrect legal description. The property was subsequently sold at a foreclosure sale for homeowners dues to CPI, which did not discover the Deed of Trust in favor of Bank of America. Bank of America subsequently brought action to quiet title. Although “[a] deed of trust containing a defective description of the subject property is a defective deed of trust and provides no notice, actual or constructive, under our recordation statutes.” Fifth Third Mortg. Co. v. Miller, 202 N.C. App. 757, 761, 690 S.E.2d 7, 9– 10, disc. review denied, 364 N.C. 601, 703 S.E.2d 445 (2010), the purchaser of a property has constructive notice of all duly recorded documents in the chain of title, particularly during the most recent term of ownership of the property. See Steagall v. Robinson, 81 N.C. App. 617 (1986). Accordingly, CIP should reasonably have discovered the Deed of Trust, recorded with the correct property address and PIN. For a copy of the opinion, please see: Bank of America v. Charlotte Property Investments- Incorrect Legal Description Insufficient to Defeat Deed of Trust