Associations subject to the Planned Community Act are required to maintain property insurance on the common elements and liability insurance. If the insurance is not available, the Association is required to give notice of that fact to all lot owners either by hand-delivery or by United States mail. N.C. Gen. Stat. § 47F-3-113.
Disputes sometimes arise when a mountain stream is a boundary line. Even though there may be a recorded plat showing metes and bounds of a stream boundary, the actual location of the stream prevails over the description in a plat.
As spring moves into summer, mountain residents and visitors spend more time in the outdoors taking advantage of our beautiful weather and scenery. Dog owners should be aware of the potential liability that may arise when your dog is allowed to roam free without any restraint. Many communities have restrictive covenants in their deeds requiring dogs to be kept in fenced yards or on a leash when off the owner’s property. Towns and counties may have ordinances with similar provisions. If you fail to comply with deed restrictions and/or ordinances and a neighbor or visitor is injured by your dog, you could be held liable for damages. Some breeds of dogs can cause you to lose your insurance coverage or
The death or incapacity of a member appointing a proxy does not affect the right of the corporation to accept the proxy’s authority, unless notice of the death or incapacity is received by the Secretary or other officer or agent authorized to tabulate votes before the proxy exercises authority under the appointment. N.C. Gen. Stat. § 55A-7-24.
Filing a lien and pursuing a civil action are two options available to associations for collecting unpaid assessments and fines from delinquent lot owners. It is also critical that you carefully evaluate the costs and benefits to the association before electing to pursue foreclosure. Many associations attempt to file their own liens without the assistance of an attorney, but because there are very technical statutory requirements involved, many miss the mark. These mistakes are critical because filing an invalid lien can constitute slander of title for which an association may be sued, in addition to creating a permanent obstacle to collecting the unpaid assessments. Mistake #1: Not waiting long enough before filing the lien. General Statute section 47F-3-116 governs the
Incorporated associations must prepare an alphabetical list of the names of its members entitled to notice of a meeting, showing the address and number of votes each member is entitled to cast. N.C. Gen. Stat. § 55A-7-20(a). The list must be made available for inspection prior to the meeting and during the meeting. N.C. Gen. Stat. § 55A-7-20(b).
So far in our series we have outlined the general nature of those rights and how long they can last, the requirements of transferring those rights from one person or company to another, and what happens when your declarant’s lender forecloses. In our last part of the series, we discuss what you can do when disputes arise between the declarant and the owners. An association and its members under the control of the declarant have few options to resist a declarant who is abusing control. Board members have a fiduciary duty to the association and this fiduciary duty must be met even if it conflicts with the desires of the declarant who appoints board members. If the board ignores its
As discussed in our post “‘Lien’ on Me”, we are frequently asked for advice on how to collect unpaid assessments and fines. While the answer for your specific association depends on the particular facts of each situation, there are some general guidelines that can help your board make decisions regarding collections. The first option, discuss in our earlier post, is to record a lien against the lot and demand payment from the lot owner. The second option is a civil action against the lot owner(s) to recover the unpaid account. This option can be especially attractive where one member owns several delinquent lots and each lot would have to be foreclosed separately or where the lot is secured by a
In Part 1 of our series on special declarant rights we explained the general nature of those rights and how long they can last. Here, in Part 2, we explore the requirements of transferring those rights from one person or company to another. As with most aspects of planned communities, the North Carolina Planned Community Act includes a section regulating the transfer of special declarant rights. Section 47F-3-104 requires that any transfer of special declarant rights be done by a written instrument reciting the transfer recorded in every county which any portion of the subdivision is located. Except for the transfer of declarant rights resulting from foreclosure or similar proceedings, the instrument transferring special declarant rights is not effective unless
The spring construction season is nearly here! Whether your project plans are small or large, your contract can cause big headaches if you leave out an essential section. You should always have your contracts reviewed by an attorney, but use this checklist as a guide when you interview contractors or builders to make sure you are working with an honest and ethical professional. The Parties – Make sure you have the correct names of all of the persons entering into the contract. Check the North Carolina Secretary of States Corporations Division to find out whether your contractor is incorporated, and use the business name listed on their Articles of Incorporation. If your contractor is not incorporated (or their corporation has