Why North Carolina’s Title System Needs Reform
In North Carolina, every real estate closing depends on one critical step: the title search. Attorneys must comb through decades of public records to ensure that no hidden claims, liens, or ownership disputes exist. Yet the system we rely on, the traditional grantor–grantee index, is outdated, inefficient, and prone to error. It’s time for the legislature to modernize the process. To learn more about the real estate closing process in general click here.
The Problem with the Grantor/Grantee Index
The grantor/grantee index requires attorneys to search names of past owners rather than the property itself. This creates several practical issues:
Duplicate Names: Too many people share the same names, especially in larger counties. Sorting out which “John Smith” owned your property can take hours.
Developer Transactions: Developers may record dozens—or even hundreds—of transactions under one name. Identifying the relevant entries for a single parcel becomes unnecessarily complex.
Inheritance Issues: When property passes through estates, heirs, and multiple generations, the name-based system makes it difficult to trace ownership cleanly.
The result? A simple title search can require massive resources, raising transaction costs for purchasers and slowing down real estate deals across the state.
The Case for a Parcel-Based System
Instead of indexing by names, North Carolina should adopt a parcel-based title system. Under this model, each parcel of land has its own title history tied directly to it. When that parcel is subdivided or merged, the relevant portion of its history follows the new parcel. This system allows an attorney, or any purchaser, to see the complete ownership record for a piece of land without chasing names across multiple indexes.
Many other jurisdictions have already modernized. Countries like Australia and New Zealand, and counties across Europe, use parcel-based systems to provide clarity, reduce legal disputes, and improve efficiency. Even in the United States, certain states and counties have adopted more property-focused registries, showing that reform is both feasible and effective.
A Call for Legislative Action
Modernizing North Carolina’s title system would not only ease the burden on attorneys but also protect consumers. Buyers deserve certainty that their property rights are secure without paying for excessive hours of legal work caused by outdated indexing. A parcel-based system would streamline closings, reduce errors, and bring our state in line with best practices worldwide.
For a state with such a robust real estate market, North Carolina can no longer afford to rely on 19th-century indexing methods. It’s time for the legislature to move us forward.