The North Carolina General Assembly passed Senate Bill 16 and presented it to the Governor on August 4th. The act creates a commission to study the process for mediation or arbitration of disputes between property owners and their association. The commission is required to report its findings and recommendations to the 2018 regular session of the General Assembly when it convenes next year. Litigation of such disputes can be very expensive and the cost of such litigation has discouraged some property owners and associations from pursuing their claims. However, requiring arbitration could likely include a prohibition on the appeal of any decision, leaving property owners and associations stuck with rulings by an arbitrator or arbitration panel that are in direct
Too often we represent property owners who are surprised to find a lien on their property after hiring a contractor for new construction or renovations. Chapter 44A, Article 2 of the general statutes of North Carolina gives construction contractors, design professionals and suppliers the right to place a lien upon property that has benefited from their service or material and to foreclose the lien if they are not paid. There are two types of liens commonly used against property owners: (1) liens upon property and (2) liens upon funds. A construction lien upon property is a direct claim on the real estate improved that can result in the real estate being sold to pay the claimant. Liens upon funds enable
Every amendment to the Declarations shall be recorded in every county in which any portion of the Planned Community is located and is effective only upon recordation. N.C. Gen. Stat. § 47F-2-117.
An Association subject to the Planned Community Act shall not be liable for maintenance, repair, and all other expenses in connection with any real estate which has not been incorporated into the planned community. N.C. Gen. Stat. § 47F-3-107(e).
A significant portion of our practice involves property line disputes. The steep terrain in Western North Carolina combined with a large number of deed descriptions referring to boulders and trees can make it difficult to determine the exact location of a boundary line between two adjoining parcels of property. In addition, modern survey technology has improved the accuracy of surveys and frequently the distance and bearing calls will vary from those shown in an old plat of survey. If you have a question about the proper location of your boundary line, action should be taken immediately to determine the proper location. Under North Carolina law, possession of property for a period of more than 20 years, combined with acts that
Filing a lien and pursuing a civil action are two options available to associations for collecting unpaid assessments and fines from delinquent lot owners. For associations that elect to file a lien, the next step when the owner continues to refuse to pay is foreclosure. Foreclosures can be expensive and time-consuming if the lot owner contests the proceedings or appeals the orders entered by the Clerk of Court to Superior Court. Therefore, it is critical that association boards carefully evaluate this option before electing to pursue this remedy. If there is a deed of trust, judgment lien, or other encumbrance on the property prior in time to the recorded association lien, the decision becomes more difficult. Foreclosure of the association
An appointment of a proxy is effective when received by the Secretary or other officer or agent authorized to tabulate votes. An appointment of a proxy is valid for 11 months unless a different period is expressly provided in the appointment form. N.C. Gen. Stat. § 55A-7-24.
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)