AN ACT to Provide for the automatic expungement of certain eviction records.

The General Assembly of North Carolina enacts:

SECTION 1.  Article 3 of Chapter 42 of the General Statutes is amended by adding a new section to read:

§ 42‑36.4.  Expungement of court records of certain summary ejectment actions.

(a)        The clerk of superior court shall, without further petition or hearing, enter an order requiring all court records made in summary ejectment proceedings to be expunged from the files of the court 30 days after the resolution of the proceedings if the proceedings are resolved in one of the following ways:

(1)        The proceedings are voluntarily dismissed prior to a magistrate's entry of an order for possession.

(2)        The proceedings are voluntarily dismissed prior to the district court's entry of an order of possession, provided that the proceedings have been withdrawn from small claims court and brought before the district court, or the proceedings have been moved to district court pursuant to an appeal for a trial de novo.

(b)        The clerk of court shall not automatically expunge court records related to summary ejectment proceedings where judgment is entered in favor of the defendant on the merits of the initial action; however, the defendant may file a petition, and the clerk of superior court shall, without a hearing, enter an order requiring all court records made in the summary ejectment proceedings to be expunged from the files of the court in accordance with the provisions of subsection (c) of this section.

(c)        For summary ejectment proceedings commenced prior to October 1, 2025, the defendant may file a petition in the court in which the underlying summary ejectment action was filed requesting all court records made in the summary ejectment proceedings be expunged from the files of the court if the action was resolved in one of the following ways:

(1)        The proceedings are voluntarily dismissed prior to a magistrate's entry of an order for possession.

(2)        The proceedings are voluntarily dismissed prior to the district court's entry of an order of possession, provided that the proceedings have been withdrawn from small claims court and brought before the district court, or the proceedings have been moved to district court pursuant to an appeal for a trial de novo.

(3)        Judgment is entered in favor of the defendant on the merits of the initial action, all applicable appeals periods have passed, and all applicable appeals have been resolved.

Upon finding that a summary ejectment action was resolved in one of the ways described by this subsection, the court shall, without a hearing, enter an order requiring the expungement of the court records related to the summary ejectment action.

(d)       For summary ejectment actions in which judgment is entered in favor of the plaintiff on the initial merits of the action, the defendant, after (i) all applicable appeals periods have passed, (ii) all applicable appeals have been resolved, and (iii) the passing of a three‑year waiting period beginning on the date of entry of the judgment on the initial merits of the action, may file a petition in the court in which the underlying summary ejectment action was filed requesting all court records made in the summary ejectment proceedings be expunged from the files of the court. Upon finding that the petitioner has stabilized his or her housing, the court shall, without a hearing, enter an order requiring all court records made in the summary ejectment proceedings to be expunged from the files of the court. The court may consider at least all of the following when determining if the petitioner has stabilized his or her housing:

(1)        Proof of petitioner's consistent and timely payment of rent or mortgage payments during the three‑year waiting period.

(2)        An affidavit, signed by the petitioner, stating that the petitioner has not been named as a defendant in any additional summary ejectment or foreclosure proceedings during the three‑year waiting period.

(e)        The Administrative Office of the Courts shall develop forms for the petitions required by this section. The forms shall require the petitioner to provide at least all of the following: (i) the date that the order of dismissal, stay of proceedings, or entry of judgment was entered for the summary ejectment action, (ii) the address of the property that was subject to the summary ejectment action, and (iii) the name of the plaintiff in the summary ejectment action.

SECTION 2.  The Administrative Office of the Courts shall develop and make available the petition forms required by G.S. 42‑36.4, as enacted in Section 1 of this act, no later than September 30, 2025.

SECTION 3.  Section 1 of this act becomes effective October 1, 2025. The remainder of this act is effective when it becomes law.