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
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 is to record a lien against the lot and demand payment from the lot owner. Recording a lien for unpaid assessments coupled with a demand letter for payment of the assessments and attorneys’ fees is usually a good first step in the collection process. Our firm charges affordable flat fees for preparation and recording of the lien and for the statutory letter that permits the recovery of attorney’s fees if the amount demanded is
In Part 1 of our series on special declarant rights, we explained the general nature of those rights and how long they can last, and in Part 2 we explored the requirements of transferring those rights from one person or company to another. In this installment, we discuss another aspect of declarant control that became particularly relevant in the recent collapse of the real estate market – what happens when your developer (the declarant) goes out of business. Unless a deed of trust, mortgage, or other security instrument provides otherwise, the developer loses all declarant rights and the period of declarant control ends when its lender forecloses. However, if the instrument conveying title provides for transfer of all special declarant
An Association is not permitted to foreclose on a claim of lien unless the Board specifically votes to commence the proceeding against the lot. N.C. Gen. Stat. § 47F-3-116(f)
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
Developers of planned communities usually include a provision for special declarant rights. “Special declarant rights” means rights reserved for the benefit of the declarant, such as the right to annex additional property into the subdivision, the right to maintain offices and signs within the subdivision, the right to use easements through the common elements for the purpose of making improvements within the subdivision or within real estate that may be added to the subdivision, and other similar provisions. Special declarant rights include rights that permit the declarant to control the association by appointing and removing members of the board. The declarations will include a provision that for a certain period of time or until the sale of a certain number
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
Did you know that everything you ever needed to know about consumer insurance is available for free from the North Carolina Department of Insurance? These guides are an invaluable resource for anyone who either owns a home or is thinking about owning a home in North Carolina. Check out the “Consumer Guide to Homeowner’s Insurance” to get an exhaustive overview of what your policy will and will not cover.