Most associations have faced lot owners who refuse to “play by the rules.” Those owners may ignore limits on pets, attempt to build non-permitted structures, or create nuisances on their property. While injunctions can often require the lot owner to follow property restrictions, Associations have another tool that is less expensive and often makes sense as a first step in resolving the problem. N.C. Gen. Stat. § 47F-3-102(12) and §107.1 applies to all planned communities subject to the Planned Community Act regardless of their date of creation. It gives associations the power to fine and suspend privileges of lot owners for failure to comply with the declarations, bylaws and rules and regulations of the community. Notice and an opportunity to
N.C. Gen. Stat. § 47F-3-121 contains restrictions on the ability of associations to regulate or prohibit American and state flags and political signs. Be sure to check your declarations to make sure they are in compliance with this statute.
An association board of directors may take over operation of a planned community and discover that the declarant or declarant-controlled board entered into contracts that the board wishes to end. N.C. Gen. Stat. § 47F-3-105 provides that an association’s contract that began while the declarant controlled the association can be terminated without penalty. The contract must not be a bona fide contract or it must be unconscionable to the lot owners at the time the contact began. The board must give at least 90 days’ notice before terminating the contract. If your association has had discussions with your declarant regarding a turnover of the association to an elected board, it is important to have a properly prepared document spelling out
Associations, planned communities, and condominiums subject to all of the provisions of the Planned Community Act and the Condominium Act are required to permit proxy voting. Planned Communities and condominiums formed after the effective date of those statutes are permitted proxy voting unless the articles of incorporation or bylaws prohibit or limit proxy voting. One owner of a lot may execute a proxy, but if a lot is owned by more than one person, each owner of the lot may vote or register a protest to the casting of votes by the other owners through a proxy. It is important to make sure that proxies are dated. A proxy is void if not dated. A proxy terminates eleven (11) months
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
In an August 1, 2017 decision, Tanglewood Property Owners’ Ass’n v. Isenhour, et al., the North Carolina Court of Appeals affirmed the duty of a property owner that has the right to use an easement in a subdivision to pay for a share of the cost of maintaining the easement. In this case a voluntary property owners’ association created prior to the Planned Community Act was awarded judgment against a lot owner who claimed that he did not use all of the roadway easement in a subdivision and was not a member of the association. The Court’s opinion restated the principle that the obligation to contribute to road maintenance can be calculated on a pro rata (per lot) basis without
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.
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.
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).