n.c. gen. stat. § 47a-1...n.c. gen. stat. § 47a-3 (6) "declaration" means the...
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N.C. Gen. Stat. § 47A-1
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-1. Short title
This Article shall be known as the "Unit Ownership Act."
History
1963, c. 685, s. 1; 1983, c. 624, s. 2.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47A-2
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-2. Declaration creating unit ownership; recordation
Unit ownership may be created by an owner or the co-owners of a building by an express declaration
of their intention to submit such property to the provisions of the Article, which declaration shall be
recorded in the office of the register of deeds of the county in which the property is situated.
History
1963, c. 685, s. 2; 1983, c. 624, s. 2.
General Statutes of North Carolina
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N.C. Gen. Stat. § 47A-3
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-3. Definitions
Unless it is plainly evident from the context that a different meaning is intended, as used herein:
(1) "Association of unit owners" means all of the unit owners acting as a group in accordance
with the bylaws and declaration.
(1a) "Building" means a building, or a group of buildings, each building containing one or more
units, and comprising a part of the property; provided that the property shall contain not
less than two units.
(2) "Common areas and facilities," unless otherwise provided in the declaration or lawful
amendments thereto, means and includes:
a. The land on which the building stands and such other land and improvements thereon
as may be specifically included in the declaration, except any portion thereof included
in a unit;
b. The foundations, columns, girders, beams, supports, main walls, roofs, halls, corridors,
lobbies, stairs, stairways, fire escapes, and entrances and exits of the building;
c. The basements, yards, gardens, parking areas and storage spaces;
d. The premises for the lodging of janitors or persons in charge of property;
e. Installations of central services such as power, light, gas, hot and cold water, heating,
refrigeration, air conditioning and incinerating;
f. The elevators, tanks, pumps, motors, fans, compressors, ducts, and in general, all
apparatus and installations existing for common use;
g. Such community and commercial facilities as may be provided for in the declaration;
and
h. All other parts of the property necessary or convenient to its existence, maintenance
and safety, or normally in common use.
(3) "Common expenses" means and includes:
a. All sums lawfully assessed against the unit owners by the association of unit owners;
b. Expenses of administration, maintenance, repair or replacement of the common areas
and facilities;
c. Expenses agreed upon as common expenses by the association of unit owners;
d. Expenses declared common expenses by the provisions of this Article, or by the
declaration or the bylaws;
e. Hazard insurance premiums, if required.
(4) "Common profits" means the balance of all income, rents, profits, and revenues from the
common areas and facilities remaining after the deductions of the common expenses.
(5) "Condominium" means the ownership of single units in a multi-unit structure with common
areas and facilities.
N.C. Gen. Stat. § 47A-3
(6) "Declaration" means the instrument, duly recorded, by which the property is submitted to
the provisions of this Article, as hereinafter provided, and such declaration as from time to
time may be lawfully amended.
(7) "Limited common areas and facilities" means and includes those common areas and
facilities which are agreed upon by all the unit owners to be reserved for the use of a
certain number of units to the exclusion of the other units, such as special corridors,
stairways and elevators, sanitary services common to the units of a particular floor, and the
like.
(8) "Majority" or "majority of unit owners" means the owners of more than fifty percent (50%)
of the aggregate interest in the common areas and facilities as established by the
declaration assembled at a duly called meeting of the unit owners.
(9) "Person" means individual, corporation, partnership, association, trustee, or other legal
entity.
(10) "Property" means and includes the land, the building, all improvements and structures
thereon and all easements, rights and appurtenances belonging thereto, and all articles of
personal property intended for use in connection therewith, which have been or are
intended to be submitted to the provisions of this Article.
(11) "Recordation" means to file of record in the office of the county register of deeds in the
county where the land is situated, in the manner provided by law for recordation of
instruments affecting real estate.
(12) "Unit" or "condominium unit" means an enclosed space consisting of one or more rooms
occupying all or a part of a floor or floors in a building of one or more floors or stories
regardless of whether it be designed for residence, for office, for the operation of any
industry or business, or for any other type of independent use and shall include such
accessory spaces and areas as may be described in the declaration, such as garage space,
storage space, balcony, terrace or patio, provided it has a direct exit to a thoroughfare or
to a given common space leading to a thoroughfare.
(13) "Unit designation" means the number, letter, or combination thereof designating the unit
in the declaration.
(14) "Unit owner" means a person, corporation, partnership, association, trust or other legal
entity, or any combination thereof, who owns a unit within the building.
History
1963, c. 685, s. 3; 1969, c. 848; 1971, c. 418; 1983, c. 624, s. 2.
General Statutes of North Carolina
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N.C. Gen. Stat. § 47A-4
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-4. Property subject to Article
This Article shall be applicable only to property, the full owner or all of the owners of which submit the
same to the provisions hereof by duly executing and recording a declaration as hereinafter provided.
History
1963, c. 685, s. 4; 1983, c. 624, s. 2.
General Statutes of North Carolina
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N.C. Gen. Stat. § 47A-5
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-5. Nature and incidents of unit ownership
Unit ownership as created and defined in this Article shall vest in the holder exclusive ownership and
possession with all the incidents of real property. A condominium unit in the building may be
individually conveyed, leased and encumbered and may be inherited or devised by will, as if it were
solely and entirely independent of the other condominium units in the building of which it forms a
part. Such a unit may be held and owned by more than one person either as tenants in common or
tenants by the entirety or in any other manner recognized under the laws of this State.
History
1963, c. 685, s. 5; 1983, c. 624, s. 2.
General Statutes of North Carolina
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N.C. Gen. Stat. § 47A-6
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-6. Undivided interests in common areas and facilities; ratio fixed in declaration;
conveyance with unit
(a) Each unit owner shall be entitled to an undivided interest in the common areas and facilities in
the ratio expressed in the declaration. Such ratio shall be in the approximate relation that the
fair market value of the unit at the date of the declaration bears to the then aggregate fair
market value of all the units having an interest in said common areas and facilities.
(b) The ratio of the undivided interest of each unit owner in the common areas and facilities as
expressed in the declaration shall have a permanent character and shall not be altered except
with the unanimous consent of all unit owners expressed in an amended declaration duly
recorded.
(c) The undivided interest in the common areas and facilities shall not be separated from the unit
to which it appertains and shall be deemed conveyed or encumbered with the unit even though
such interest is not expressly mentioned or described in the conveyance or other instrument.
History
1963, c. 685, s. 6.
General Statutes of North Carolina
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N.C. Gen. Stat. § 47A-7
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-7. Common areas and facilities not subject to partition or division
The common areas and facilities shall remain undivided and no unit owner or any other person shall
bring any action for partition or division of any part thereof, unless the property has been removed
from the provisions of this Article as provided in G.S. 47A-16 and 47A-25. Any covenant to the
contrary shall be null and void. This restraint against partition shall not apply to the individual
condominium unit.
History
1963, c. 685, s. 7; 1983, c. 624, s. 2.
General Statutes of North Carolina
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N.C. Gen. Stat. § 47A-8
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-8. Use of common areas and facilities
Each unit owner may use the common areas and facilities in accordance with the purpose for which
they are intended, without hindering or encroaching upon the lawful rights of the other unit owners.
History
1963, c. 685, s. 8.
General Statutes of North Carolina
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N.C. Gen. Stat. § 47A-9
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-9. Maintenance, repair and improvements to common areas and facilities; access to
units for repairs
The necessary work of maintenance, repair, and replacement of the common areas and facilities and
the making of any additions or improvements thereto shall be carried out only as provided herein and
in the bylaws. The association of unit owners shall have the irrevocable right, to be exercised by the
manager or board of directors, or other managing body as provided in the bylaws, to have access to
each unit from time to time during reasonable hours as may be necessary for the maintenance, repair
or replacement of any of the common areas and facilities therein or accessible therefrom, or for
making emergency repairs therein necessary to prevent damage to the common areas and facilities
or to another unit or units.
History
1963, c. 685, s. 9.
General Statutes of North Carolina
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N.C. Gen. Stat. § 47A-10
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-10. Compliance with bylaws, regulations and covenants; damages; injunctions
Each unit owner shall comply strictly with the bylaws and with the administrative rules and
regulations adopted pursuant thereto, as either of the same may be lawfully amended from time to
time, and with the covenants, conditions and restrictions set forth in the declaration or in the deed to
his unit. Failure to comply with any of the same shall be grounds for an action to recover sums due,
for damages or injunctive relief, or both, maintainable by the manager or board of directors on behalf
of the association of unit owners or, in a proper case, by an aggrieved unit owner.
History
1963, c. 685, s. 10.
General Statutes of North Carolina
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N.C. Gen. Stat. § 47A-11
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-11. Unit owners not to jeopardize safety of property or impair easements
No unit owner shall do any work which would jeopardize the soundness or safety of the property or
impair any easement or hereditament without in every such case the unanimous consent of all the
other unit owners affected being first obtained.
History
1963, c. 685, s. 11.
General Statutes of North Carolina
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N.C. Gen. Stat. § 47A-12
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-12. Unit owners to contribute to common expenses; distribution of common profits
The unit owners are bound to contribute pro rata, in the percentages computed according to G.S.
47A-6 of this Article, toward the expenses of administration and of maintenance and repair of the
general common areas and facilities and, in proper cases of the limited common areas and facilities,
of the building and toward any other expense lawfully agreed upon. No unit owner may exempt
himself from contributing toward such expense by waiver of the use or enjoyment of the common
areas and facilities or by abandonment of the unit belonging to him.
Provided, however, that the common profits of the property, if any, shall be distributed among the
unit owners according to the percentage of the undivided interest in the common areas and facilities.
History
1963, c. 685, s. 12; 1983, c. 624, s. 2.
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N.C. Gen. Stat. § 47A-13
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-13. Declaration creating unit ownership; contents; recordation
The declaration creating and establishing unit ownership as provided in G.S. 47A-3 of this Article,
shall be recorded in the office of the county register of deeds and shall contain the following
particulars:
(1) Description of the land on which the building and improvements are or are to be located.
(2) Description of the building, stating the number of stories and basements, the number of
units, and the principal materials of which it is constructed.
(3) The unit designation of each unit, and a statement of its location, approximate area,
number of rooms, and immediate common area to which it has access, and any other data
necessary for its proper identification.
(4) Description of the general common areas and facilities and the proportionate interest of
each unit owner therein.
(5) Description of the limited common areas and facilities, if any, stating what units shall share
the same and in what proportion.
(6) Statement of the purpose for which the building and each of the units are intended and
restricted as to use.
(7) The name of a person to receive service of process in the cases hereinafter provided,
together with the residence or the place of business of such person which shall be within
the city and county in which the building is located.
(8) Any further details in connection with the property which the person executing the
declaration may deem desirable to set forth consistent with this Article.
(9) The method by which the declaration may be amended, consistent with the provisions of
this Article.
History
1963, c. 685, s. 13; 1983, c. 624, s. 2.
General Statutes of North Carolina
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N.C. Gen. Stat. § 47A-14
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
N.C. Gen. Stat. § 47A-14
Repealed by Session Laws 1981, c. 527, s. 1.
General Statutes of North Carolina
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N.C. Gen. Stat. § 47A-14.1
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-14.1. Deeds conveying units
(a) Any conveyance of a condominium unit executed on or after October 1, 1981, which complies
with the general requirements of the laws of this State concerning conveyances of real property
shall be valid.
(b) All conveyances of condominium units executed before October 1, 1981, which comply with
the general requirements of the laws of this State concerning conveyances of real property
shall be valid even though such conveyances failed to comply with one or more of the
particulars set out in former G.S. 47A-14.
History
1981, c. 527, ss. 2, 3.
General Statutes of North Carolina
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N.C. Gen. Stat. § 47A-15
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-15. Plans of building to be attached to declaration; recordation; certificate of architect
or engineer
(a) There shall be attached to the declaration, at the time it is filed for record, a full and exact
copy of the plans of the building, which copy of plans shall be entered of record along with the
declaration. Said plans shall show graphically all particulars of the building, including, but not
limited to, the layout, location, ceiling and floor elevations, unit numbers and dimensions of the
units, stating the name of the building or that it has no name, area and location of the common
areas and facilities affording access to each unit, and such plans shall bear the verified
statement of a registered architect or licensed professional engineer certifying that it is an
accurate copy of portions of the plans of the building as filed with and approved by the
municipal or other governmental subdivision having jurisdiction over the issuance of permits for
the construction of buildings. If such plans do not include a verified statement by such architect
or engineer that such plans fully and accurately depict the layout, location, ceiling and floor
elevations, unit numbers and dimensions of the units, as built, there shall be recorded prior to
the first conveyance of any unit an amendment to the declaration to which shall be attached a
verified statement of a registered architect or licensed professional engineer certifying that the
plans theretofore filed, or being filed simultaneously with such amendment, fully depict the
layout, ceiling and floor elevations, unit numbers and dimensions of the units as built. Such
plans shall be kept by the register of deeds in a separate file, indexed in the same manner as a
conveyance entitled to record, numbered serially in the order of receipt, each designated "Unit
Ownership," with the name of the building, if any, and each containing a reference to the book
and page numbers and date of the recording of the declaration.
(b) In order to be recorded, plans filed for recording pursuant to subsection (a) shall:
(1) Be reproducible plans on cloth, linen, film or other permanent material and be submitted in
that form; and
(2) Have an outside marginal size of not more than 21 inches by 30 inches nor less than eight
and one-half inches by 11 inches, including one and one-half inches for binding on the left
margin and a one-half inch border on each of the other sides. Where size of the buildings,
or suitable scale to assure legibility require, plans may be placed on two or more sheets
with appropriate match lines.
(c) The fee for recording each plan sheet submitted pursuant to subsection (a) shall be as
prescribed by G.S. 161-10(a)(3).
History
1963, c. 685, s. 15; 1981, c. 587.
General Statutes of North Carolina
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N.C. Gen. Stat. § 47A-16
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-16. Termination of unit ownership; consent of lienholders; recordation of instruments
(a) All of the unit owners may remove a property from the provisions of this Article by an
instrument to that effect, duly recorded, provided that the holders of all liens, affecting any of
the units consent thereto or agree, in either case by instruments duly recorded, that their liens
be transferred to the percentage of the undivided interest of the unit owner in the property as
hereinafter provided.
(b) Upon removal of the property from the provisions of this Article, the property shall be deemed
to be owned as tenants in common by the unit owners. The undivided interest in the property
owned as tenants in common which shall appertain to each unit owner shall be the percentage
of the undivided interest previously owned by such unit owner in the common areas and
facilities.
History
1963, c. 685, s. 16; 1983, c. 624, s. 2.
General Statutes of North Carolina
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N.C. Gen. Stat. § 47A-17
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-17. Termination of unit ownership; no bar to reestablishment
The removal provided for in G.S. 47A-16 shall in no way bar the subsequent resubmission of the
property to the provisions of this Article.
History
1963, c. 685, s. 17; 1983, c. 624, s. 2; 2002-159, s. 10.
General Statutes of North Carolina
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N.C. Gen. Stat. § 47A-18
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-18. Bylaws; annexed to declaration; amendments
The administration of every property shall be governed by bylaws, a true copy of which shall be
annexed to the declaration. No modification of or amendment to the bylaws shall be valid, unless set
forth in an amendment to the declaration and such amendment is duly recorded.
History
1963, c. 685, s. 18; 1973, c. 734.
General Statutes of North Carolina
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N.C. Gen. Stat. § 47A-19
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-19. Bylaws; contents
The bylaws shall provide for the following:
(1) Form of administration, indicating whether this shall be in charge of an administrator,
manager, or of a board of directors or board of administration, independent corporate
body, or otherwise, and specifying the powers, manner of removal, and, where proper, the
compensation thereof.
(2) Method of calling or summoning the unit owners to assemble; what percentage, if other
than a majority of unit owners, shall constitute a quorum; who is to preside over the
meeting and who will keep the minute book wherein the resolutions shall be recorded.
(3) Maintenance, repair and replacement of the common areas and facilities and payments
therefor, including the method of approving payment vouchers.
(4) Manner of collecting from the unit owners their share of the common expenses.
(5) Designation and removal of personnel necessary for the maintenance, repair and
replacement of the common areas and facilities.
(6) Method of adopting and of amending administrative rules and regulations governing the
details of the operation and use of the common areas and facilities.
(7) Such restrictions on and requirements respecting the use and maintenance of the units and
the use of the common areas and facilities, not set forth in the declaration, as are designed
to prevent unreasonable interference with the use of their respective units and of the
common areas and facilities by the several unit owners.
(8) The percentage of votes required to amend the bylaws, and a provision that such
amendment shall not become operative unless set forth in an amended declaration and
duly recorded.
(9) A provision that all unit owners shall be bound to abide by any amendment upon the same
being passed and duly set forth in an amended declaration, duly recorded.
(10) Other provisions as may be deemed necessary for the administration of the property
consistent with this Article.
History
1963, c. 685, s. 19; 1983, c. 624, s. 2.
General Statutes of North Carolina
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N.C. Gen. Stat. § 47A-20
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-20. Records of receipts and expenditures; availability for examination; annual audit
The manager or board of directors, or other form of administration provided in the bylaws, as the
case may be, shall keep detailed, accurate records in chronological order of the receipts and
expenditures affecting the common areas and facilities, specifying and identifying the maintenance
and repair expenses of the common areas and facilities and any other expense incurred. Both said
book and the vouchers accrediting the entries thereupon shall be available for examination by all the
unit owners, their duly authorized agents or attorneys, at convenient hours on working days that shall
be set and announced for general knowledge. All books and records shall be kept in accordance with
good and accepted accounting practices and an outside audit shall be made at least once a year.
History
1963, c. 685, s. 20.
General Statutes of North Carolina
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N.C. Gen. Stat. § 47A-21
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-21. Units taxed separately
Each condominium unit and its percentage of undivided interest in the common areas and facilities
shall be deemed to be a parcel and shall be separately assessed and taxed by each assessing unit and
special district for all types of taxes authorized by law including but not limited to special ad valorem
levies and special assessments. Each unit holder shall be liable solely for the amount of taxes against
his individual unit and shall not be affected by the consequences resulting from the tax delinquency of
other unit holders. Neither the building, the property nor any of the common areas and facilities shall
be deemed to be a parcel.
History
1963, c. 685, s. 21.
General Statutes of North Carolina
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N.C. Gen. Stat. § 47A-22
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-22. Liens for unpaid common expenses; recordation; priorities; foreclosure
(a) Any sum assessed by the association of unit owners for the share of the common expenses
chargeable to any unit, and remaining unpaid for a period of 30 days or longer, shall constitute
a lien on such unit when filed of record in the office of the clerk of superior court of the county
in which the property is located in the manner provided therefor by Article 8 of Chapter 44 of
the General Statutes. Upon the same being duly filed, such lien shall be prior to all other liens
except the following:
(1) Assessments, liens and charges for real estate taxes due and unpaid on the unit;
(2) All sums unpaid on deeds of trust, mortgages and other encumbrances duly of record
against the unit prior to the docketing of the aforesaid lien.
(3) Materialmen's and mechanics' liens.
(b) Provided the same is duly filed in accordance with the provisions contained in subsection (a) of
this section, a lien created by nonpayment of a unit owner's pro rata share of the common
expenses may be foreclosed by suit by the manager or board of directors, acting on behalf of
the unit owners, in like manner as a deed of trust or mortgage of real property. In any such
foreclosure the unit owner shall be required to pay a reasonable rental for the unit, if so
provided in the bylaws, and the plaintiff in such foreclosure shall be entitled to the appointment
of a receiver to collect the same. The manager or board of directors, acting on behalf of the
unit owners shall have power, unless prohibited by the declaration, to bid in the unit at
foreclosure sale, and to acquire and hold, lease, mortgage and convey the same. A suit to
recover a money judgment for unpaid common expenses shall be maintainable without
foreclosing or waiving the lien securing the same.
(c) Where the mortgagee of a first mortgage of record or other purchaser of a unit obtains title to
the unit as a result of foreclosure of the first mortgage, such purchaser, his successors and
assigns, shall not be liable for the share of the common expenses or assessments by the
association of unit owners chargeable to such unit which became due prior to the acquisition of
title to such unit by such purchaser. Such unpaid share of common expenses or assessments
shall be deemed to be common expenses collectible from all of the unit owners including such
purchaser, his successors and assigns.
History
1963, c. 685, s. 22.
General Statutes of North Carolina
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N.C. Gen. Stat. § 47A-23
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-23. Liability of grantor and grantee of unit for unpaid common expenses
The grantee of a unit shall be jointly and severally liable with the grantor for all unpaid assessments
against the latter for his proportionate share of the common expenses up to the time of the grant or
conveyance, without prejudice to the grantee's right to recover from the grantor the amounts paid by
the grantee therefor. However, any such grantee shall be entitled to a statement from the manager
or board of directors, as the case may be, setting forth the amount of the unpaid assessments against
the grantor and such grantee shall not be liable for, nor shall the unit conveyed be subject to a lien
for, any unpaid assessments in excess of the amount therein set forth.
History
1963, c. 685, s. 23.
General Statutes of North Carolina
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N.C. Gen. Stat. § 47A-24
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-24. Insurance on property; right to insure units
The manager of the board of directors, or other managing body, if required by the declaration, bylaws
or by a majority of the unit owners, shall have the authority to, and shall, obtain insurance for the
property against loss or damage by fire and such other hazards under such terms and for such
amounts as shall be required or requested. Such insurance coverage shall be written on the property
in the name of such manager or of the board of directors of the association of unit owners, as trustee
for each of the unit owners in the percentages established in the declaration. The trustee so named
shall have the authority on behalf of the unit owners to deal with the insurer in the settlement of
claims. The premiums for such insurance on the building shall be deemed common expenses.
Provision for such insurance shall be without prejudice to the right of each unit owner to insure his
own unit for his benefit.
History
1963, c. 685, s. 24.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47A-25
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-25. Damage to or destruction of property; repair or restoration; partition sale on
resolution not to restore
Except as hereinafter provided, damage to or destruction of the building shall be promptly repaired
and restored by the manager or board of directors, or other managing body, using the proceeds of
insurance on the building for that purpose, and unit owners shall be liable for assessment for any
deficiency; provided, however, if the building shall be more than two-thirds destroyed by fire or
other disaster and the owners of three-fourths of the building duly resolve not to proceed with
repair or restoration, then and in that event:
(1) The property shall be deemed to be owned as tenants in common by the unit owners;
(2) The undivided interest in the property owned by the unit owners as tenants in common
which shall appertain to each unit owner shall be the percentage of undivided interest
previously owned by such owner in the common areas and facilities;
(3) Any liens affecting any of the units shall be deemed to be transferred in accordance with
the existing priorities to the percentage of the undivided interest of the unit owner in the
property as provided herein; and
(4) The property shall be subject to an action for sale for partition at the suit of any unit
owner, in which event the net proceeds of sale, together with the net proceeds of insurance
policies, if any, shall be considered as one fund and shall be divided among all the unit
owners in proportion to their respective undivided ownership of the common areas and
facilities, after first paying off, out of the respective shares of unit owners, to the extent
sufficient for that purpose, all liens on the unit of each unit owner.
History
1963, c. 685, s. 25.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47A-26
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-26. Actions as to common interests; service of process on designated agent;
exhaustion of remedies against association
Without limiting the rights of any unit owner, actions may be brought by the manager or board of
directors, in either case in the discretion of the board of directors, on behalf of two or more of the unit
owners, as their respective interests may appear, with respect to any course of action relating to the
common areas and facilities or more than one unit. Service of process on two or more unit owners in
any action relating to the common areas and facilities or more than one unit may be made on the
person designated in the declaration to receive service of process. Any individual, corporation,
partnership, association, trustee, or other legal entity claiming damages for injuries without any
participation by a unit owner shall first exhaust all available remedies against the association of unit
owners prior to proceeding against any unit owner individually.
History
1963, c. 685, s. 26.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47A-27
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-27. Zoning regulations governing condominium projects
Whenever they deem it proper, the planning and zoning commission of any county or municipality
may adopt supplemental rules and regulations governing a condominium project established under
this Article in order to implement this program.
History
1963, c. 685, s. 27; 1983, c. 624, s. 2.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47A-28
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§ 47A-28. Persons subject to Article, declaration and bylaws; effect of decisions of association
of unit owners
(a) All unit owners, tenants of such owners, employees of owners and tenants, or any other
persons that may in any manner use the property or any part thereof submitted to the
provisions of this Article, shall be subject to this Article and to the declaration and bylaws of the
association of unit owners adopted pursuant to the provisions of this Article.
(b) All agreements, decisions and determinations lawfully made by the association of unit owners
in accordance with the voting percentages established in the Article, declaration or bylaws,
shall be deemed to be binding on all unit owners.
History
1963, c. 685, s. 28; 1983, c. 624, s. 2.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47A-29
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 1.
UNIT OWNERSHIP ACT
§§ 47A-29 through 47A-33
Reserved for future codification purposes.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47A-34
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 2.
RENTERS IN CONVERSION BUILDINGS PROTECTED
§ 47A-34. Definitions
The definitions set out in G.S. 47A-3 also apply to this Article. As used in this Article, unless the
context requires otherwise, the term:
(1) "Conversion building" means a building that at any time before creation of the
condominium was occupied wholly or partially by persons other than purchasers and
persons who occupy with the consent of purchasers.
(2) "Declarant" means any person or group of persons acting in concert who, as part of a
common promotional plan, offers to dispose of his or its interest in a unit not previously
disposed of.
(3) "Dispose" or "disposition" means a voluntary transfer to a purchaser of any legal or
equitable interest in a unit, but does not include the transfer or release of a security
interest.
(4) "Offering" means any advertisement, inducement, solicitation, or attempt to encourage any
person to acquire any interest in a unit, other than as security for an obligation.
(5) "Residential purposes" means use for dwelling or recreational purposes, or both.
History
1983, c. 624, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47A-35
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 2.
RENTERS IN CONVERSION BUILDINGS PROTECTED
§ 47A-35. Offering statement
An offering statement must contain or fully and accurately disclose:
(1) The name and principal address of the declarant;
(2) A general description of the condominium including, to the extent possible, a listing of any
improvements and amenities that declarant anticipates including in the condominium, and
declarant's schedule of completion of construction on buildings;
(3) The terms and significant limitations of any warranties provided by the declarant; and
(4) Any other information made available to the general public in connection with the offering.
History
1983, c. 624, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47A-36
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 2.
RENTERS IN CONVERSION BUILDINGS PROTECTED
§ 47A-36. Time to vacate; right of first refusal to purchase
(a) A declarant of a condominium containing conversion buildings, and any person in the business
of selling real estate for his own account who intends to offer units in such a condominium,
shall provide each of the residential tenants and any residential subtenant in possession of a
portion of a conversion building notice of the conversion as well as an offering statement as
provided in G.S. 47A-35 no later than 90 days before the tenant or subtenant are required to
vacate. The notice shall set forth generally the rights of tenants and subtenants under this
section and section (b) of G.S. 47A-36. This notice shall be hand-delivered to the unit or mailed
by prepaid United States mail to the tenant and subtenant at the address of the unit or any
other mailing address provided by a tenant. No tenant or subtenant may be required to vacate
upon less than 90 days' notice, except by reason of nonpayment of rent, waste, conduct that
disturbs other tenants' peaceful enjoyment of the premises or breach of lease giving rise to the
right of repossession of the unit by the declarant, and the terms of the tenancy may not be
altered during that period. Failure to give notice as required by this section is a defense to an
action for possession.
(b) For 30 days after the delivery of the notice described in subsection (a), the person required to
give the notice shall offer to convey each unit or proposed unit occupied for residential use to
the tenant who leases that unit. The tenant can accept an offer under this section by entering
into an agreement to purchase within the 30-day period. The tenant shall be allowed a 30-day
period after acceptance in which to complete a purchase transaction. This subsection does not
apply to any unit in a conversion building if that unit will be restricted exclusively to
nonresidential use or the boundaries of the converted unit do not substantially conform to the
dimensions of the residential unit before conversion.
(c) If a declarant, in violation of subsection (b), conveys a unit to a purchaser, recordation of the
deed conveying the unit extinguishes any right a tenant may have under subsection (b) to
purchase that unit, but does not affect any other right of a tenant.
History
1983, c. 624, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47A-37
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47A. UNIT OWNERSHIP > ARTICLE 2.
RENTERS IN CONVERSION BUILDINGS PROTECTED
§ 47A-37. Applicability
This Article applies to condominiums of five or more units created on or after January 1, 1984.
History
1983, c. 624, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-1-101
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 1. GENERAL PROVISIONS
§ 47C-1-101. Short title
This chapter shall be known and may be cited as the North Carolina Condominium Act.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-1-102
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 1. GENERAL PROVISIONS
§ 47C-1-102. Applicability
(a) This Chapter applies to all condominiums created within this State after October 1, 1986. G.S.
47C-1-105 (Separate Titles and Taxation), 47C-1-106 (Applicability of Local Ordinances,
Regulations, and Building Codes), 47C-1-107 (Eminent Domain), 47C-2-103 (Construction and
Validity of Declaration and Bylaws), 47C-2-104 (Description of Units), 47C-2-121 (Merger or
Consolidation of Condominiums), 47C-3-102(a)(1) through (6) and (11) through (16)(Powers
of Unit Owners' Association), 47C-3-103 (Executive board members and officers), 47C-3-107.1
(Procedures for fines and suspension of condominium privileges or services), 47C-3-108
(Meetings), 47C-3-111 (Tort and Contract Liability), 47C-3-112 (Conveyance or Encumbrance
of Common Elements), 47C-3-116 (Lien for Assessments), 47C-3-118 (Association Records),
47C-3-121 (American and State flags and political sign displays), and 47C-4-117 (Effect of
Violation on Rights of Action; Attorney's Fees), and G.S. 47C-1-103 (Definitions), to the extent
necessary in construing any of those sections, apply to all condominiums created in this State
on or before October 1, 1986, unless the declaration expressly provides to the contrary. Those
sections apply only with respect to events and circumstances occurring after October 1, 1986,
and do not invalidate existing provisions of the declarations, bylaws, or plats or plans of those
condominiums.
(b) The provisions of Chapter 47A, the Unit Ownership Act, do not apply to condominiums created
after October 1, 1986 and do not invalidate any amendment to the declaration, bylaws, and
plats and plans of any condominium created on or before October 1, 1986 if the amendment
would be permitted by this chapter. The amendment must be adopted in conformity with the
procedures and requirements specified by those instruments and by Chapter 47A, the Unit
Ownership Act. If the amendment grants to any person any rights, powers, or privileges
permitted by this chapter, all correlative obligations, liabilities, and restrictions in this chapter
also apply to that person.
(c) This chapter does not apply to condominiums or units located outside this State, but the public
offering statement provisions (G.S. 47C-4-102 through 47C-4-108) apply to all contracts for
the dispositions thereof signed in this State by any party unless exempt under G.S. 47C-4-
101(b).
History
1985 (Reg. Sess., 1986), c. 877, s. 1; 1995, c. 509, s. 135.1(h); 2002-112, s. 1; 2004-109, s. 1;
2005-422, s. 19.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-1-103
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 1. GENERAL PROVISIONS
§ 47C-1-103. Definitions
In the declaration and bylaws, unless specifically provided otherwise or the context otherwise
requires, and in this chapter:
(1) "Affiliate of a declarant" means any person who controls, is controlled by, or is under
common control with a declarant. A person "controls" a declarant if the person (i) is a
general partner, officer, director, or employer of the declarant, (ii) directly or indirectly or
acting in concert with one or more other persons, or through one or more subsidiaries,
owns, controls, holds with power to vote, or holds proxies representing, more than twenty
percent (20%) of the voting interests in the declarant, (iii) controls in any manner the
election of a majority of the directors of the declarant, or (iv) has contributed more than
twenty percent (20%) of the capital of the declarant. A person "is controlled by" a
declarant if the declarant (i) is a general partner, officer, director, or employer of the
person, (ii) directly or indirectly or acting in concert with one or more other persons, or
through one or more subsidiaries, owns, controls, holds with power to vote, or holds
proxies representing, more than twenty percent (20%) of the voting interests in the
person, (iii) controls in any manner the election of a majority of the directors of the person,
or (iv) has contributed more than twenty percent (20%) of the capital of the person.
Control does not exist if the powers described in this paragraph are held solely as security
for an obligation and are not exercised.
(2) "Allocated interests" means the undivided interests in the common elements, the common
expense liability, and votes in the association allocated to each unit.
(3) "Association" or "unit owners' associations" means the unit owners' associations organized
under G.S. 47C-3-101.
(4) "Common elements" means all portions of a condominium other than the units.
(5) "Common expenses" means expenditures made by or financial liabilities of the association,
together with any allocations to reserves.
(6) "Common expense liability" means the liability for common expenses allocated to each unit
pursuant to G.S. 47C-2-107.
(7) "Condominium" means real estate, portions of which are designated for separate ownership
and the remainder of which is designated for common ownership solely by the owners of
those portions. Real estate is not a condominium unless the undivided interests in the
common elements are vested in the unit owners.
(8) "Conversion building" means a building that at any time before creation of the
condominium was occupied wholly or partially by persons other than purchasers or by
persons who occupy with the consent of purchasers.
(9) "Declarant" means any person or group of persons acting in concert who (i) as part of a
common promotional plan offers to dispose of his or its interest in a unit not previously
disposed of or (ii) reserves or succeeds to any special declarant right.
(10) "Declaration" means any instruments, however denominated, which create a
condominium, and any amendments to those instruments.
N.C. Gen. Stat. § 47C-1-103
(11) "Development rights" means any right or combination of rights reserved by a declarant in
the declaration to add real estate to a condominium; to create units, common elements, or
limited common elements within a condominium; to subdivide units or convert units into
common elements; or to withdraw real estate from a condominium.
(12) "Dispose" or "disposition" means a voluntary transfer to a purchaser of any legal or
equitable interest in a unit, but does not include the transfer or release of a security
interest.
(13) "Executive board" means the body, regardless of name, designated in the declaration to
act on behalf of the association.
(14) "Identifying number" means a symbol or address that identifies only one unit in a
condominium.
(15) "Leasehold condominium" means a condominium in which all or a portion of the real
estate is subject to a lease the expiration or termination of which will terminate the
condominium or reduce its size.
(16) "Limited common element" means a portion of the common elements allocated by the
declaration or by operation of G.S. 47C-2-102(2) or (4) for the exclusive use of one or
more but fewer than all of the units.
(17) "Master association" means an organization described in G.S. 47C-2-120, whether or not
it is also an association described in G.S. 47C-3-101.
(18) "Offering" means any advertisement, inducement, solicitation, or attempt to encourage
any person to acquire any interest in a unit, other than as security for an obligation. An
advertisement in a newspaper or other periodical of general circulation, or in any broadcast
medium to the general public, of a condominium not located in this State, is not an offering
if the advertisement states that an offering may be made only in compliance with the law of
the jurisdiction in which the condominium is located.
(19) "Person" means a natural person, corporation, business trust, estate, trust, partnership,
association, joint venture, government, governmental subdivision or agency, or other legal
or commercial entity.
(20) "Purchaser" means any person, other than a declarant or a person in the business of
selling real estate for his own account, who by means of a voluntary transfer acquires a
legal or equitable interest in a unit other than (i) a leasehold interest (including renewal
options) of less than five years, or (ii) as security for an obligation.
(21) "Real estate" means any leasehold or other estate or interest in, over, or under land,
including structures, fixtures, and other improvements and interests which by custom,
usage, or law, pass with a conveyance of land though not described in the contract of sale
or instrument of conveyance. "Real estate" includes parcels, with or without upper or lower
boundaries, and spaces that may be filled with air or water.
(22) "Residential purposes" means use for dwelling or recreational purposes, or both.
(23) "Special declarant rights" means rights reserved for the benefit of a declarant to complete
improvements indicated on plats and plans filed with the declaration (G.S. 47C-2-109); to
exercise any development right (G.S. 47C-2-110); to maintain sales offices, management
offices, signs advertising the condominium, and models (G.S. 47C-2-115); to use
easements through the common elements for the purpose of making improvements within
the condominium or within real estate which may be added to the condominium (G.S. 47C-
2-116); to make the condominium part of a larger condominium (G.S. 47C-2-121); or to
appoint or remove any officer of the association or any executive board member during any
period of declarant control (G.S. 47C-3-103(d)).
N.C. Gen. Stat. § 47C-1-103
(24) "Time share" means a "time share" as defined in G.S. 93A-41(9).
(25) "Unit" means a physical portion of the condominium designated for separate ownership or
occupancy, the boundaries of which are described pursuant to (G.S. 47C-2-105(a)(5).
(26) "Unit owner" means a declarant or other person who owns a unit, or a lessee of a unit in
a leasehold condominium whose lease expires simultaneously with any lease the expiration
or termination of which will remove the unit from the condominium, but does not include a
person having an interest in a unit solely as security for an obligation.
(27) "Lessee" means the party entitled to present possession of a leased unit whether lessee,
sublessee or assignee.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-1-104
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 1. GENERAL PROVISIONS
§ 47C-1-104. Variation; power of attorney or proxy to declarant
(a) Except as specifically provided in specific sections of this chapter, the provisions of this chapter
may not be varied by the declaration or bylaws.
(b) The provisions of this chapter may not be varied by agreement; however, after breach of a
provision of this chapter, rights created hereunder may be knowingly waived in writing.
(c) If a declarant, in good faith, has attempted to comply with the requirements of this chapter
and has substantially complied with the chapter, nonmaterial errors or omissions shall not be
actionable.
(d) Notwithstanding any other provision of this chapter, a declarant may not act under a power of
attorney or proxy or use any other device to evade the limitations or prohibitions of this
chapter, the declaration, or the bylaws.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-1-105
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 1. GENERAL PROVISIONS
§ 47C-1-105. Separate titles and taxation
(a) If there is any unit owner other than a declarant, each unit that has been created, together
with its interest in the common elements, constitutes for all purposes a separate parcel of real
estate.
(b) If there is any unit owner other than a declarant, each unit must be separately taxed and
assessed, and no separate tax or assessment may be rendered against any common elements
for which a declarant has reserved no developmental rights.
(c) Any portion of the common elements for which the declarant has reserved any developmental
right must be separately taxed and assessed against the declarant, and the declarant alone is
liable for payment of those taxes.
(d) If there is no unit owner other than a declarant, the real estate comprising the condominium
may be taxed and assessed in any manner provided by law.
(e) Except as provided in subsection (c) of this section, extraterritorial common property taxed
pursuant to G.S. 105-277.8 shall be assessed, pro rata, among the unit owners based on the
number of the units in the association.
History
1985 (Reg. Sess., 1986), c. 877, s. 1; 2012-157, s. 2.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-1-106
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 1. GENERAL PROVISIONS
§ 47C-1-106. Applicability of local ordinances, regulations, and building codes
A zoning, subdivision, or building code or other real estate use law, ordinance, or regulation may not
prohibit the condominium form of ownership or impose any requirement upon a condominium which it
would not impose upon a substantially similar development under a different form of ownership.
Otherwise, no provision of this chapter invalidates or modifies any provision of any zoning,
subdivision, or building code or other real estate use law, ordinance, or regulation. No local ordinance
or regulation may require the recordation of a declaration prior to the date required by this chapter.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-1-107
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 1. GENERAL PROVISIONS
§ 47C-1-107. Eminent domain
(a) If a unit is acquired by eminent domain, or if part of a unit is acquired by eminent domain
leaving the unit owner with a remnant which may not practically or lawfully be used for any
purpose permitted by the declaration, the award must compensate the unit owner for his unit
and its interest in the common elements, whether or not any common elements are acquired.
Unless the condemnor acquires the right to use the unit's interest in common elements, that
unit's allocated interests are automatically reallocated to the remaining units in proportion to
the respective allocated interests of those units before the taking exclusive of the unit taken,
and the association shall promptly prepare, execute, and record an amendment to the
declaration reflecting the reallocations. Any remnant of a unit remaining after part of a unit is
taken under this subsection is thereafter a common element.
(b) Except as provided in subsection (a), if part of a unit is acquired by eminent domain, the
award must compensate the unit owner for the reduction in value of the unit and of its interest
in the common elements, whether or not any common elements are acquired. Upon acquisition,
unless the decree otherwise provides, (1) that unit's allocated interests are reduced in
proportion to the reduction in the size of the unit, or on any other basis specified in the
declaration, and (2) the portion of the allocated interests divested from the partially acquired
unit is automatically reallocated to that unit and the remaining units in proportion to the
respective allocated interests of those units before the taking, with the partially acquired unit
participating in the reallocation on the basis of its reduced allocated interests.
(c) If part of the common elements is acquired by eminent domain, the portion of the award not
payable to unit owners under subsection (a) must be paid to the association. Unless the
declaration provides otherwise, any portion of the award attributable to the acquisition of a
limited common element must be apportioned among the owners of the units to which that
limited common element was allocated at the time of acquisition.
(d) The court decree shall be recorded in every county in which any portion of the condominium is
located.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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N.C. Gen. Stat. § 47C-1-108
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 1. GENERAL PROVISIONS
§ 47C-1-108. Supplemental general principles of law applicable
The principles of law and equity supplement the provisions of this chapter, except to the extent
inconsistent with this chapter.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-1-109
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 1. GENERAL PROVISIONS
§ 47C-1-109. Inconsistent time share provisions
The provisions of this Chapter shall apply, so far as appropriate, to every time share program or
project created within this State after October 1, 1986, except to the extent that specific statutory
provisions in Chapter 93A are inconsistent with this Chapter, in which case the provisions of Chapter
93A shall prevail.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-2-101
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
CONDOMINIUMS
§ 47C-2-101. Execution and recordation of declaration
(a) A declaration creating a condominium shall be executed in the same manner as a deed, shall
be recorded in every county in which any portion of the condominium is located.
(b) A declaration or an amendment to a declaration adding units to a condominium, may not be
recorded unless all structural components and mechanical systems of all buildings containing or
comprising any units thereby created are substantially completed in accordance with the plans,
as evidenced by a recorded certificate of completion executed by an architect licensed under
the provisions of Chapter 83 [83A] of the General Statutes or an engineer registered under the
provisions of Chapter 89C of the General Statutes.
History
1985 (Reg. Sess., 1986), c. 877, s. 1; 2012-18, s. 1.5.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-2-102
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
CONDOMINIUMS
§ 47C-2-102. Unit boundaries
Except as provided by the declaration:
(1) If walls, floors or ceilings are designated as boundaries of a unit, then all lath, furring,
wallboard, plasterboard, plaster, paneling, tiles, wallpaper, paint, finished flooring and any
other materials constituting any part of the finished flooring, and any other materials
constituting any part of the finished surfaces thereof are a part of the unit; and all other
portions of such walls, floors, or ceilings are a part of the common elements.
(2) If any chute, flue, duct, wire, conduit, bearing wall, bearing column, or any other fixture
lies partially within and partially outside the designated boundaries of a unit, any portion
thereof serving only that unit is a limited common element allocated exclusively to that
unit, and any portion thereof serving more than one unit or any portion of the common
elements is a part of the common elements.
(3) Subject to the provisions of paragraph (2), all spaces, interior partitions, and other fixtures
and improvements within the boundaries of a unit are a part of the unit.
(4) Any shutters, awnings, window boxes, doorsteps, stoops, decks, porches, balconies, patios,
and all exterior doors and windows or other fixtures designed to serve a single unit but
located outside the unit's boundaries are limited common elements allocated exclusively to
that unit.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-2-103
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
CONDOMINIUMS
§ 47C-2-103. Construction and validity of declaration and bylaws
(a) All provisions of the declaration and bylaws are severable.
(b) The rule against perpetuities may not be applied to defeat any provision of the declaration,
bylaws, or rules and regulations adopted pursuant to G.S. 47C-3-102(a)(1).
(c) In the event of a conflict between the provisions of the declaration and the bylaws, the
declaration prevails except to the extent the declaration is inconsistent with this chapter.
(d) Title to a unit and common elements is not rendered unmarketable or otherwise affected by
reason of an insubstantial failure of the declaration to comply with this chapter. Whether a
substantial failure to comply with this chapter impairs marketability shall be determined by the
law of this State relating to marketability.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-2-104
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
CONDOMINIUMS
§ 47C-2-104. Description of units
A description of a condominium unit which sets forth the name of the condominium, the recording
data for the declaration, and the identifying number of the unit or which otherwise complies with the
general requirements of the laws of this State concerning description of real property is sufficient
legal description of that unit and all rights, obligations, and interests appurtenant to that unit which
were created by the declaration or bylaws.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-2-105
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
CONDOMINIUMS
§ 47C-2-105. Contents of declaration
(a) The declaration for a condominium must contain:
(1) The name of the condominium, which must include the word "condominium" or be followed
by the words "a condominium", and the name of the association;
(2) The name of every county in which any part of the condominium is situated;
(3) A legally sufficient description of the real estate included in the condominium;
(4) A statement of the maximum number of units which the declarant reserves the right to
create;
(5) A description (by reference to the plats or plans described in G.S. 47C-2-109) of the
boundaries of each unit created by the declaration, including the unit's identifying number;
(6) A description of any limited common elements, other than those specified in subsections
47C-2-102(2) and (4), as provided in G.S. 47C-2-109(b)(7);
(7) A description of any real estate (except real estate subject to development rights) which
may be allocated subsequently as limited common elements, other than limited common
elements specified in subsections 47C-2-102(2) and (4), together with a statement that
they may be so allocated;
(8) A description of any development rights and other special declarant rights reserved by the
declarant, together with a legally sufficient description of the real estate to which each of
those rights applies, and a time limit within which each of those rights must be exercised;
(9) If any development right may be exercised with respect to different parcels of real estate
at different times, a statement to that effect, together with (i) either a statement fixing the
boundaries of those portions and regulating the order in which those portions may be
subjected to the exercise of each development right or a statement that no assurances are
made in those regards, and (ii) a statement as to whether, if any development right is
exercised in any portion of the real estate subject to that development right, that
development right must be exercised in all or in any other portion of the remainder of that
real estate;
(10) Any other conditions or limitations under which the rights described in paragraph (8) may
be exercised or will lapse;
(11) An allocation to each unit of the allocated interests in the manner described in G.S. 47C-
2-107;
(12) Any restrictions on use, occupancy, or alienation of the units;
(13) The recording data for recorded easements and licenses appurtenant to or included in the
condominium or to which any portion of the condominium is or may become subject by
virtue of a reservation in the declaration; and
N.C. Gen. Stat. § 47C-2-105
(14) All matters required by G.S. 47C-2-106, 47C-2-107, 47C-2-108, 47C-2-109, 47C-2-115,
47C-2-116, and 47C-3-103(d).
(b) The declaration may contain any other matters the declarant deems appropriate.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-2-106
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
CONDOMINIUMS
§ 47C-2-106. Leasehold condominiums
(a) Any lease, or a memorandum thereof, the expiration or termination of which may terminate
the condominium or reduce its size shall be recorded. Every lessor of those leases must sign
the declaration, and the declaration shall state:
(1) Where the complete lease may be inspected;
(2) The date on which the lease is scheduled to expire;
(3) A legally sufficient description of the real estate subject to the lease;
(4) Any right of the unit owners to redeem the reversion and the manner whereby those rights
may be exercised or a statement that they do not have those rights;
(5) Any right of the unit owners to remove any improvements after the expiration or
termination of the lease or a statement that they do not have those rights; and
(6) Any rights of the unit owners to renew the lease and the conditions of any renewal or a
statement that they do not have those rights.
(b) After the declaration for a leasehold condominium is recorded, neither the lessor nor his
successor in interest may terminate the leasehold interest of a unit owner who, after demand,
makes timely payment of his share of the rent determined in proportion to his common
element interest and otherwise complies with all covenants which, if violated, would entitle the
lessor to terminate the lease. A unit owner's leasehold interest is not affected by failure of any
other person to pay rent or fulfill any other covenant under the lease.
(c) Acquisition of the leasehold interest of any unit owner by the owner of the reversion or
remainder does not merge the leasehold and fee simple interests unless the leasehold interests
of all unit owners subject to that reversion or remainder are acquired.
(d) If the expiration or termination of a lease decreases the number of units in a condominium,
the allocated interests shall be reallocated in accordance with G.S. 47C-1-107(a) as though
those units had been taken by eminent domain. Reallocations shall be confirmed by an
amendment to the declaration prepared, executed, and recorded by the association.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-2-107
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
CONDOMINIUMS
§ 47C-2-107. Allocation of common element, interests, votes, and common expense liabilities
(a) The declaration shall allocate a fraction or percentage of undivided interests in the common
elements and in the common expenses of the association and a portion of the votes in the
association to each unit and state the formulas used to establish those allocations. Those
allocations may not discriminate in favor of units owned by the declarant.
(b) If units may be added to or withdrawn from the condominium, the declaration must state the
formulas to be used to reallocate the allocated interests among all units included in the
condominium after the addition or withdrawal.
(c) The declaration may provide: (i) that different allocations of votes shall be made to the units
on particular matters specified in the declaration; (ii) for cumulative voting only for the purpose
of electing members of the executive board; and (iii) for class voting on specified issues
affecting the class if necessary to protect valid interests of the class. A declarant may not utilize
cumulative or class voting for the purpose of evading any limitation imposed on declarants by
this chapter nor may units constitute a class because they are owned by a declarant.
(d) Except for minor variations due to rounding, the sum of the undivided interests in the common
elements and common expense liabilities allocated at any time to all the units must each equal
one if stated as fractions or one hundred percent (100%) if stated as percentages. If the
declaration allocates to each of the units a fraction or percentage of ownership of the common
elements that results in an actual total of such fractions or percentages that is greater or less
than the actual whole of such ownership, each unit's ownership of the common elements shall
be automatically reallocated so that each unit is allocated the same fraction or percentage of
ownership of the actual whole as that unit had of the actual total that was greater or less than
the actual whole. The declarant or the association shall file an amendment to the declaration
reflecting such reallocation which amendment need not be executed by any other party.
(e) The common elements are not subject to partition, and any purported conveyance,
encumbrance, judicial sale, or other voluntary or involuntary transfer of an undivided interest in
the common elements made without the unit to which that interest is allocated is void.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-2-108
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
CONDOMINIUMS
§ 47C-2-108. Limited common elements
(a) Except for the limited common elements described in subsections 47C-2-102(2) and (4), the
declaration shall specify to which unit or units each limited common element is allocated. That
allocation may not be altered without the unanimous consent of the unit owners whose units
are affected.
(b) Except as the declaration otherwise provides, a limited common element may be reallocated
by an amendment to the declaration executed by all the unit owners between or among whose
units the reallocations is made. The persons executing the amendment shall provide a copy
thereof to the association, which shall record it. The amendment shall be recorded in the same
manner as a deed in the names of the parties and the condominium.
(c) A common element not previously allocated as a limited common element may not be so
allocated except by unanimous consent or pursuant to provisions in the declaration made in
accordance with G.S. 47C-2-105(a)(7). All such allocations shall be made by amendments to
the declaration and shall become effective in accordance with G.S. 47C-2-117(c).
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-2-109
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
CONDOMINIUMS
§ 47C-2-109. Plats and plans
(a) The declarant shall file with the register of deeds in each county where the condominium is
located the condominium's plat or plan prepared in accordance with this section. The plat or
plan shall be considered a part of the declaration but shall be recorded separately, and the
declaration shall refer by number to the file where such plat or plan is recorded. Each plat or
plan must contain a certification by an architect licensed under the provisions of Chapter 83A of
the General Statutes or an engineer registered under the provisions of Chapter 89C of the
General Statutes that it contains all of the information required by this section.
(b) Each plat or plan or combination thereof must show:
(1) The name and a survey or general schematic map of the entire condominium;
(2) The location and dimensions of all real estate not subject to development rights or subject
only to the development right to withdraw and the location and dimensions of all existing
improvements within that real estate;
(3) The location and dimensions of any real estate subject to development rights, labeled to
identify the rights applicable to each parcel;
(4) The extent of any encroachments by or upon any portion of the condominium;
(5) The location and dimensions of all easements having specific location and dimensions and
serving or burdening any portion of the condominium;
(6) The verified statement of an architect licensed under the provisions of Chapter 83A of the
General Statutes or an engineer registered under the provisions of Chapter 89C of the
General Statutes certifying that such plats or plans fully and accurately depict the layout,
location, ceiling and floor elevations, unit numbers and dimensions of the units, as built;
(6a) The certificate by a registered land surveyor licensed under the provisions of Chapter 89C
of the General Statutes stating that the plats or plans accurately depict the legal
boundaries and the physical location of the units and other improvements relative to those
boundaries;
(7) The locations and dimensions of limited common elements; however, parking spaces and
the limited common elements described in subsections 47C-2-102(2) and (4) need not be
shown, except for decks, stoops, porches, balconies, and patios;
(8) A legally sufficient description of any real estate in which the unit owners will own only an
estate for years, labeled as "leasehold real estate";
(9) The distance between noncontiguous parcels of real estate comprising the condominium;
(10) Any unit in which the declarant has reserved the right to create additional units or
common elements.
(c) A plat may also show the intended location and dimensions of any contemplated improvement
to be constructed anywhere within the condominium. Any contemplated improvement shown
must be labeled either "MUST BE BUILT" or "NEED NOT BE BUILT".
N.C. Gen. Stat. § 47C-2-109
(d) Upon exercising any development right, the declarant shall record either new plats and plans
necessary to conform to the requirements of subsections (a), (b), and (c) or new certifications
of plats and plans previously recorded if those plats and plans otherwise conform to the
requirements of those subsections.
(e) In order to be recorded, plats or plans filed shall:
(1) Be reproducible plats or plans on cloth, linen, film, or other permanent material and be
submitted in that form; and
(2) Have an outside marginal size of not more than 21 inches by 30 inches nor less than eight
and one-half inches by 11 inches, including one and one-half inches for binding on the left
margin and a one-half inch border on each of the other sides. Where size of the buildings or
suitable scale to assure legibility require, plats or plans may be placed on two or more
sheets with appropriate match lines.
(f) The fee for recording each plat or plan sheet submitted shall be as prescribed by G.S. 161-
10(a)(3).
History
1985 (Reg. Sess., 1986), c. 877, s. 1; 1987, c. 282, s. 8; 1989, c. 571; 2012-18, s. 1.6.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47C-2-110
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
CONDOMINIUMS
§ 47C-2-110. Exercise of development rights
(a) To exercise any development right reserved under G.S. 47C-2-105(a)(8), the declarant shall
record an amendment to the declaration (G.S. 47C-2-117) and comply with G.S. 47C-2-109.
The declarant is the unit owner of any units thereby created. The amendment to the
declaration must assign an identifying number to each new unit created and, except in the case
of subdivision or conversion of units described in subsection (c), reallocate the allocated
interests among all units. The amendment must describe any common elements and any
limited common elements thereby created and, in the case of limited common elements,
designate the unit to which each is allocated to the extent required by G.S. 47C-2-108 (Limited
Common Elements).
(b) Development rights may be reserved within any real estate added to the condominium if the
amendment adding that real estate includes all matters required by, and is in compliance with,
G.S. 47C-2-105 and, if a leasehold condominium, G.S. 47C-2-106 and also if the plats and
plans include all matters required by G.S. 47C-2-109. This provision does not extend the limit
on the exercise of developmental rights imposed by the declaration pursuant to G.S. 47C-2-
105(a)(8).
(c) When a declarant exercises a development right to subdivide or convert a unit previously
created into additional units, common elements, or both:
(1) If the declarant converts the unit entirely to common elements, the amendment to the
declaration must reallocate all the allocated interests of that unit among the other units as
if that unit had been taken by eminent domain; or
(2) If the declarant subdivides the unit into two or more units, whether or not any part of the
unit is converted into common elements, the amendment to the declaration must reallocate
all the allocated interests of the unit among the units created by the subdivision in any
reasonable manner prescribed by the declarant.
(d) If the declaration provides pursuant to G.S. 47C-2-105(a)(8) that all or a portion of the real
estate is subject to the development right of withdrawal:
(1) If all the real estate is subject to withdrawal, and the declaration does not describe
separate portions of real estate subject to that right, no part of the real estate may be
withdrawn after a unit has been conveyed to a purchaser; and
(2) If a portion or portions are subject to withdrawal, no part of a portion may be withdrawn
after a unit in that portion has been conveyed to a purchaser.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47C-2-111
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
CONDOMINIUMS
§ 47C-2-111. Alterations of units
Subject to the provisions of the declaration and other provisions of law, a unit owner:
(1) May make any improvements or alterations to his unit that do not impair the structural
integrity or mechanical systems or lessen the support of any portion of the condominium;
(2) May not change the appearance of the common elements or the exterior appearance of a
unit or any other portion of the condominium without permission of the association; and
(3) May, after acquiring an adjoining unit, remove or alter any intervening partition or create
apertures therein, even if the partition is a common element, if those acts do not impair the
structural integrity or mechanical systems or lessen the support of any portion of the
condominium. Removal of partitions or creation of apertures under this paragraph is not an
alteration of boundaries.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-2-112
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
CONDOMINIUMS
§ 47C-2-112. Relocation of boundaries between adjoining units
(a) Subject to the provisions of the declaration and other provisions of law, the boundaries
between adjoining units may be relocated upon application to the association by the owners of
those units. Any such application to the association must be in such form and contain such data
as may be reasonably required by the association and be accompanied by a plat prepared by
an architect licensed under the provisions of Chapter 83 [83A] of the General Statutes or an
engineer registered under the provisions of Chapter 89C of the General Statutes detailing the
relocation of the boundaries between the affected units. If the owners of the adjoining units
have specified a reallocation between their units of their allocated interests, the application
must state the proposed reallocations. Unless the executive board determines within 30 days
that the reallocations are unreasonable, the association, at the expense of the owners filing the
application, shall prepare and record an amendment to the declaration that identifies the units
involved, states the reallocations, is executed by those unit owners and the association,
contains words of conveyance, and is indexed in the name of the grantor and the grantee by
the register of deeds.
(b) The association, at the expense of the unit owners filing the application, shall prepare and
record plats or plans necessary to show the altered boundaries between adjoining units and
their dimensions and identifying numbers.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-2-113
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
CONDOMINIUMS
§ 47C-2-113. Subdivision of units
(a) If the declaration expressly so permits, a unit may be subdivided into two or more units.
Subject to the provisions of the declaration and other provisions of law, upon application of a
unit owner to subdivide a unit, the association, at the expense of the unit owner, shall prepare,
execute, and record an amendment to the declaration, including the plats and plans,
subdividing that unit.
(b) The amendment to the declaration must be executed by the owner of the unit to be
subdivided, assign an identifying number to each unit created, and reallocate the allocated
interests formerly allocated to the subdivided unit to the new units in any reasonable manner
prescribed by the owner of the subdivided unit.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-2-114
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
CONDOMINIUMS
§ 47C-2-114. Easement for encroachments
(a) To the extent that any unit or common element encroaches on any other unit or common
element, a valid easement for the encroachment exists. The easement does not relieve a unit
owner of liability in case of his willful misconduct nor relieve a declarant or any other person of
liability for failure to adhere to the plats and plans.
(b) With respect to all condominiums created prior to October 1, 1986, the provisions of
subsection (a) of this section shall be deemed to apply to such condominiums, unless an action
asserting otherwise shall have been brought within six months from October 1, 1986.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-2-115
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
CONDOMINIUMS
§ 47C-2-115. Use for sales purposes
A declarant may maintain sales offices, management offices, and models in units or on common
elements in the condominium only if the declaration so provides and specifies the rights of a declarant
with regard to the number, size, location, and relocation thereof. Any sales office, management office,
or model not designated a unit by the declaration is a common element, and if a declarant ceases to
be a unit owner, he ceases to have any rights with regard thereto unless it is removed promptly from
the condominium in accordance with a right to remove reserved in the declaration. Subject to any
limitations in the declaration, a declarant may maintain signs on the common elements advertising
the condominium. The provisions of this section are subject to the provisions of other State law and
to local ordinances.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-2-116
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
CONDOMINIUMS
§ 47C-2-116. Easement to facilitate exercise of special declarant rights
Subject to the provisions of the declaration, a declarant has such easements through the common
elements as may be reasonably necessary for the purpose of discharging a declarant's obligations or
exercising special declarant rights whether arising under this Chapter or reserved in the declaration.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47C-2-117
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
CONDOMINIUMS
§ 47C-2-117. Amendment of declaration
(a) Except in cases of amendments that may be executed by a declarant under G.S. 47C-2-109(d)
or 47C-2-110, the association under G.S. 47C-1-107, 47C-1-106(d) [47C-2-106(d)], 47C-2-
112(a), or 47C-2-113, or certain unit owners under G.S. 47C-2-108(b), 47C-2-112(a), 47C-2-
113(b), or 47C-2-118(b), and except as limited by subsection (d), the declaration may be
amended only by affirmative vote of or a written agreement signed by, unit owners of units to
which at least sixty-seven percent (67%) of the votes in the association are allocated or any
larger majority the declaration specifies. The declaration may specify a smaller number only if
all of the units are restricted exclusively to nonresidential use.
(b) No action to challenge the validity of an amendment adopted by the association pursuant to
this section may be brought more than one year after the amendment is recorded.
(c) Every amendment to the declaration must be recorded in every county in which any portion of
the condominium is located and is effective only upon recordation. An amendment shall be
indexed in the Grantee's index in the name of the condominium and the association and in the
Grantor's index in the name of the parties executing the amendment.
(d) Except to the extent expressly permitted or required by other provisions of this Chapter, no
amendment may create or increase special declarant rights, increase the number of units, or
change the boundaries of any unit, the allocated interest of a unit, or the uses to which any
unit is restricted, in the absence of unanimous consent of the unit owners.
(e) Amendments to the declaration required by this Chapter to be recorded by the association
shall be prepared, executed, recorded, and certified on behalf of the association by any officer
of the association designated for that purpose or, in the absence of designation, by the
president of the association.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47C-2-118
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
CONDOMINIUMS
§ 47C-2-118. Termination of condominium
(a) Except in the case of a taking of all the units by eminent domain (G.S. 47C-1-107), a
condominium may be terminated only by agreement of unit owners of units to which at least
eighty percent (80%) of the votes in the association are allocated, or any larger percentage the
declaration specifies. The declaration may specify a smaller percentage only if all of the units in
the condominium are restricted exclusively to nonresidential uses.
(b) An agreement to terminate must be evidenced by the execution of a termination agreement,
or ratifications thereof, in the same manner as a deed, by the requisite number of unit owners.
The termination agreement must specify a date after which the agreement will be void unless
recorded before that date. A termination agreement and all ratifications thereof must be
recorded in every county in which a portion of the condominium is situated, and is effective
only upon recordation.
(c) In the case of a condominium containing only units having horizontal boundaries described in
the declaration, a termination agreement may provide that all the common elements and units
of the condominium shall be sold following termination. If, pursuant to the agreement, any real
estate in the condominium is to be sold following termination, the termination agreement must
set forth the minimum terms of the sale.
(d) In the case of a condominium containing any units not having horizontal boundaries described
in the declaration, a termination agreement may provide for sale of the common elements, but
may not require that the units be sold following termination, unless the declaration as originally
recorded provided otherwise or unless all the unit owners consent to the sale.
(e) The association, on behalf of the unit owners, may contract for the sale of real estate in the
condominium, but the contract is not binding on the unit owners until approved pursuant to
subsections (a) and (b). If any real estate in the condominium is to be sold following
termination, title to that real estate, upon termination, vests in the association as trustee for
the holders of all interests in the units. Thereafter, the association has all powers necessary
and appropriate to effect the sale. Until the sale has been concluded and the proceeds thereof
distributed, the association continues in existence with all powers it had before termination.
Proceeds of the sale must be distributed to unit owners and lienholders as their interests may
appear, in proportion to the respective interests of unit owners as provided in subsection (h).
Unless otherwise specified in the termination agreement, as long as the association holds title
to the real estate, each unit owner and his successors in interest have an exclusive right to
occupancy of the portion of the real estate that formerly constituted his unit. During the period
of that occupancy, each unit owner and his successors in interest remain liable for all
assessments and other obligations imposed on unit owners by this Chapter or the declaration.
(f) If the real estate constituting the condominium is not to be sold following termination, title to
the common elements and, in a condominium containing only units having horizontal
boundaries described in the declaration, title to all the real estate in the condominium, vests in
the unit owners upon termination as tenants in common in proportion to their respective
interests as provided in subsection (h), and liens on the units shift accordingly. While the
N.C. Gen. Stat. § 47C-2-118
tenancy in common exists, each unit owner and his successors in interest have an exclusive
right to occupancy of the portion of the real estate that formerly constituted his unit.
(g) Following termination of the condominium, the proceeds of any sale of real estate, together
with the assets of the association, are held by the association as trustee for unit owners and
holders of liens on the units as their interests may appear. Following termination, creditors of
the association holding liens on the units, which were recorded before termination, may enforce
those liens in the same manner as any lienholder. All other creditors of the association are to
be treated as if they had perfected liens on the units immediately before termination.
(h) The respective interests of unit owners referred to in subsections (e), (f) and (g) are as
follows:
(1) Except as provided in paragraph (2), the respective interests of unit owners are the fair
market value of their units, limited common elements, and common element interests
immediately before the termination, as determined by one or more independent appraisers
selected by the association. The decision of the independent appraisers shall be distributed
to the unit owners and becomes final unless disapproved within 30 days after distribution
by unit owners of units to which twenty-five percent (25%) of the votes in the association
are allocated. The proportion of any unit owner's interest to that of all unit owners is
determined by dividing the fair market value of that unit owner's unit and common element
interest by the total fair market values of all the units and common elements.
(2) If any unit or any limited common element is destroyed to the extent that an appraisal of
the fair market value thereof prior to destruction cannot be made, the interests of all unit
owners are their respective common element interests immediately before the termination.
(i) Except as provided in subsection (j), foreclosure or enforcement of a lien or encumbrance
against the entire condominium does not of itself terminate the condominium, and foreclosure
or enforcement of a lien or encumbrance against a portion of the condominium, other than
withdrawable real estate, does not withdraw that portion from the condominium. Foreclosure or
enforcement of a lien or encumbrance against withdrawable real estate does not of itself
withdraw that real estate from the condominium, but the person taking title thereto has the
right to require from the association, upon request, an amendment excluding the real estate
from the condominium.
(j) If a lien or encumbrance against a portion of the real estate comprising the condominium has
priority over the declaration, and the lien or encumbrance has not been released, the parties
foreclosing the lien or encumbrance may upon foreclosure, record an instrument excluding the
real estate subject to that lien or encumbrance from the condominium.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47C-2-119
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
CONDOMINIUMS
N.C. Gen. Stat. § 47C-2-119
Reserved for future codification purposes.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47C-2-120
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
CONDOMINIUMS
§ 47C-2-120. Master associations
(a) If the declaration for a condominium provides that any of the powers described in G.S. 47C-3-
102 are to be exercised by or may be delegated to a profit or nonprofit corporation (or
unincorporated association) which exercises those or other powers on behalf of one or more
condominiums or for the benefit of the unit owners of one or more condominiums, all provisions
of this chapter applicable to unit owners' associations apply to any such corporation (or
unincorporated association), except as modified by this section.
(b) Unless a master association is acting in the capacity of an association described in G.S. 47C-3-
101, it may exercise the powers set forth in G.S. 47C-3-102(a)(2) only to the extent expressly
permitted in the declarations of condominiums which are part of the master association or
expressly described in the delegations of power from those condominiums to the master
association.
(c) If the declaration of any condominium provides that the executive board may delegate certain
powers to a master association, the members of the executive board have no liability for the
acts or omissions of the master association with respect to those powers following delegation.
(d) The rights and responsibilities of unit owners with respect to the unit owners' association set
forth in G.S. 47C-3-103, 47C-3-108, 47C-3-109, and 47C-3-110 apply in the conduct of the
affairs of a master association only to those persons who elect the board of a master
association, whether or not those persons are otherwise unit owners within the meaning of this
Chapter.
(e) Notwithstanding the provisions of G.S. 47C-3-103(f) with respect to the election of the
executive board of an association by all unit owners after the period of declarant control ends
and even if a master association is also an association described in G.S. 47C-3-101, the
certificate of incorporation or other instrument creating the master association and the
declaration of each condominium, the powers of which are assigned by the declaration or
delegated to the master association, may provide that the executive board of the master
association must be elected after the period of declarant control in any of the following ways:
(1) All unit owners of all condominiums subject to the master association may elect all
members of that executive board.
(2) All members of the executive boards of all condominiums subject to the master association
may elect all members of that executive board.
(3) All unit owners of each condominium subject to the master association may elect specified
members of that executive board.
(4) All members of the executive board of each condominium subject to the master association
may elect specified members of that executive board.
N.C. Gen. Stat. § 47C-2-120
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47C-2-121
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
CONDOMINIUMS
§ 47C-2-121. Merger or consolidation of condominiums
(a) Any two or more condominiums may, by agreement of the unit owners as provided in
subsection (b), be merged or consolidated into a single condominium. In the event of a merger
or consolidation, unless the agreement otherwise provides, the resultant condominium shall be,
for all purposes, the legal successor of all of the pre-existing condominiums, and the operations
and activities of all associations of the pre-existing condominiums shall be merged or
consolidated into a single association which shall hold all powers, rights, obligations, assets and
liabilities of all pre-existing associations.
(b) An agreement of two or more condominiums to merge or consolidate pursuant to subsection
(a) must be evidenced by an agreement prepared, executed, recorded and certified by the
president of the association of each of the pre-existing condominiums following approval by
owners of units to which are allocated the percentage of votes in each condominium required to
terminate that condominium. Any such agreement must be executed in the same manner as a
deed and recorded in every county in which a portion of the condominium is located and is not
effective until recorded.
(c) Every merger or consolidation agreement must provide for the reallocation of the allocated
interests in the new association among the units of the resultant condominium either (i) by
stating such reallocations or the formulas upon which they are based or (ii) by stating the
percentage of overall allocated interests of the new condominium which are allocated to all of
the units comprising each of the pre-existing condominiums and providing that the portion of
such percentages allocated to each unit formerly comprising a part of such pre-existing
condominium shall be equal to the percentages of allocated interests allocated to such unit by
the declaration of the pre-existing condominiums.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47C-3-101
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 3. MANAGEMENT OF THE CONDOMINIUM
§ 47C-3-101. Organization of unit owners' association
A unit owners' association shall be organized no later than the date the first unit in the condominium
is conveyed. The membership of the association at all times shall consist exclusively of all the unit
owners, or following termination of the condominium, of all persons entitled to distributions of
proceeds under G.S. 47C-2-118. The association shall be organized as a profit or nonprofit
corporation or as an unincorporated nonprofit association.
History
1985 (Reg. Sess., 1986), c. 877, s. 1; 2006-226, s. 4.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47C-3-102
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 3. MANAGEMENT OF THE CONDOMINIUM
§ 47C-3-102. Powers of unit owners' association
(a) Unless the declaration expressly provides to the contrary, the association, even if
unincorporated, may:
(1) Adopt and amend bylaws and rules and regulations;
(2) Adopt and amend budgets for revenues, expenditures, and reserves and collect
assessments for common expenses from unit owners;
(3) Hire and terminate managing agents and other employees, agents, and independent
contractors;
(4) Institute, defend, or intervene in its own name in litigation or administrative proceedings
on matters affecting the condominium;
(5) Make contracts and incur liabilities;
(6) Regulate the use, maintenance, repair, replacement, and modification of common
elements;
(7) Cause additional improvements to be made as a part of the common elements;
(8) Acquire, hold, encumber, and convey in its own name any right, title, or interest to real or
personal property, provided that common elements may be conveyed or subjected to a
security interest only pursuant to G.S. 47C-3-112;
(9) Grant easements, leases, licenses, and concessions through or over the common elements;
(10) Impose and receive any payments, fees, or charges for the use, rental, or operation of
the common elements other than limited common elements described in subsections 47C-
2-102(2) and (4) and for services provided to unit owners;
(11) Impose charges for late payment of assessments, not to exceed the greater of twenty
dollars ($ 20.00) per month or ten percent (10%) of any assessment installment unpaid
and, after notice and an opportunity to be heard, suspend privileges or services provided
by the association (except rights of access to lots) during any period that assessments or
other amounts due and owing to the association remain unpaid for a period of 30 days or
longer, and levy reasonable fines not to exceed one hundred dollars ($ 100.00) (G.S. 47C-
3-107.1) for violations of the declaration, bylaws, and rules and regulations of the
association.
(12) Impose reasonable charges for the preparation and recordation of amendments to the
declaration, resale certificates required by G.S. 47C-4-109, or statements of unpaid
assessments;
(13) Provide for the indemnification of and maintain liability insurance for its officers, executive
board, directors, employees and agents;
(14) Assign its right to future income, including the right to receive common expense
assessments.
(15) Exercise all other powers that may be exercised in this State by legal entities of the same
types as the association; and
N.C. Gen. Stat. § 47C-3-102
(16) Exercise any other powers necessary and proper for the governance and operation of the
association.
(b) Notwithstanding subsection (a), the declaration may not impose limitations on the power of
the association to deal with the declarant that are more restrictive than the limitations imposed
on the power of the association to deal with other persons.
History
1985 (Reg. Sess., 1986), c. 877, s. 1; 2004-109, s. 2; 2005-422, ss. 10, 11.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47C-3-103
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 3. MANAGEMENT OF THE CONDOMINIUM
§ 47C-3-103. Executive board members and officers
(a) Except as provided in the declaration, the bylaws, or subsection (b) or other provisions of this
chapter, the executive board may act in all instances on behalf of the association. In the
performance of their duties, the officers and members of the executive board shall be deemed
to stand in a fiduciary relationship to the association and the unit owners and shall discharge
their duties in good faith, and with that diligence and care which ordinarily prudent men would
exercise under similar circumstances in like positions.
(b) The executive board may not act on behalf of the association to amend the declaration (G.S.
47C-2-117), to terminate the condominium (G.S. 47C-2-118), or to elect members of the
executive board or determine the qualifications, powers and duties, or terms of office of
executive board members (G.S. 47C-3-103(e) and (f)), but the executive board may fill
vacancies in its membership for the unexpired portion of any term. Notwithstanding any
provision of the declaration or bylaws to the contrary, the unit owners, by at least sixty-seven
percent (67%) vote of all persons present and entitled to vote at any meeting of the unit
owners at which a quorum is present, may remove any member of the executive board with or
without cause, other than members appointed by the declarant.
(c) Within 30 days after adoption of any proposed budget for the condominium, the executive
board shall provide a summary of the budget to all the unit owners, and shall set a date for a
meeting of the unit owners to consider ratification of the budget not less than 14 nor more than
30 days after mailing of the summary. There shall be no requirement that a quorum be present
at the meeting. The budget is ratified unless at that meeting a majority of all the unit owners or
any larger vote specified in the declaration rejects the budget. In the event the proposed
budget is rejected, the periodic budget last ratified shall be continued until such time as the
unit owners ratify a subsequent budget proposed by the executive board.
(d) Subject to subsection (e), the declaration may provide for a period of declarant control of the
association, during which period a declarant, or persons designated by him, may appoint and
remove the officers and members of the executive board. Regardless of the period provided in
the declaration, a period of declarant control terminates no later than the earlier of: (i) 120
days after conveyance of seventy-five percent (75%) of the units (including units which may be
created pursuant to special declarant rights) to unit owners other than a declarant; (ii) two
years after all declarants have ceased to offer units for sale in the ordinary course of business;
or (iii) two years after any development right to add new units was last exercised. A declarant
may voluntarily surrender the right to appoint and remove officers and members of the
executive board before termination of that period, but in that event he may require, for the
duration of the period of declarant control, that specified actions of the association or executive
board, as described in a recorded instrument executed by the declarant, be approved by the
declarant before they become effective.
(e) Not later than 60 days after conveyance of twenty-five percent (25%) of the units (including
units which may be created pursuant to special rights) to unit owners other than a declarant, at
least one member and not less than twenty-five percent (25%) of the members of the
executive board shall be elected by unit owners other than the declarant. Not later than 60
days after conveyance of fifty percent (50%) of the units (including units which may be
N.C. Gen. Stat. § 47C-3-103
created pursuant to special declarant rights) to unit owners other than a declarant, not less
than thirty-three percent (33%) of the members of the executive board shall be elected by unit
owners other than the declarant.
(f) Not later than the termination of any period of declarant control, the unit owners shall elect an
executive board of at least three members, at least a majority of whom must be unit owners.
The executive board shall elect the officers. The executive board members and officers shall
take office upon election.
(g) The association shall publish the names and addresses of all officers and board members of
the association within 30 days of the election.
History
1985 (Reg. Sess., 1986), c. 877, s. 1; 2005-422, ss. 12, 13.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47C-3-104
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 3. MANAGEMENT OF THE CONDOMINIUM
§ 47C-3-104. Transfer of special declarant rights
(a) No special declarant right (G.S. 47C-1-103(23)) created or reserved under this chapter may
be transferred except by an instrument evidencing the transfer recorded in every county in
which any portion of the condominium is located. The instrument is not effective unless
executed by the transferee.
(b) Upon transfer of any special declarant right, the liability of a transferor declarant is as follows:
(1) A transferor is not relieved of any obligation or liability arising before the transfer,
including, but not limited to, liability or obligations relating to warranties. Lack of privity
does not deprive any unit owner of standing to bring an action to enforce any obligation of
the transferor.
(2) If the successor to any special declarant right is an affiliate of a declarant (G.S. 47C-1-
103(1)), the transferor is jointly and severally liable with the successor for any obligation or
liability of the successor which relates to the condominium.
(3) If a transferor retains any special declarant right, but transfers other special declarant
rights to a successor who is not an affiliate of the declarant, the transferor is liable for any
obligations or liabilities imposed on a declarant by this chapter or by the declaration
relating to the retained special declarant rights and arising after the transfer.
(4) A transferor has no liability for any act or omission or any breach of a contractual or
warranty obligation arising from the exercise of a special declarant right by a successor
declarant who is not an affiliate of the transferor.
(c) Unless otherwise provided in a mortgage instrument or deed of trust, in case of foreclosure of
a mortgage, tax sale, judicial sale, sale by a trustee under a deed of trust, or sale under
Bankruptcy Code or receivership proceedings, of any units owned by a declarant, or real estate
in a condominium subject to development rights, a person acquiring title to all the real estate
being foreclosed or sold, but only upon his request, succeeds to all special declarant rights
related to that real estate held by that declarant, or only to any rights reserved in the
declaration and held by that declarant to maintain models, sales offices and signs. The
judgment or instrument conveying title shall provide for transfer of only the special declarant
rights requested.
(d) Upon foreclosure, tax sale, judicial sale, sale by a trustee under a deed of trust, or sale under
Bankruptcy Code or receivership proceedings, of all units and other real estate in a
condominium owned by a declarant the declarant ceases to have any special declarant rights.
(e) The liabilities and obligations of persons who succeed to special declarant rights are as follows:
(1) A successor to any special declarant right who is an affiliate of a declarant is subject to all
obligations and liabilities imposed on the transferor related to the condominium.
(2) A successor to any special declarant right, other than a successor described in paragraphs
(3) and (4) who is not an affiliate of a declarant, is subject to all obligations and liabilities:
N.C. Gen. Stat. § 47C-3-104
a. On a declarant which relate to his exercise or nonexercise of special declarant rights; or
b. On his transferor, other than:
(i) Misrepresentations by any prior declarant;
(ii) Warranty obligations on improvements made by any previous declarant, or made
before the condominium was created;
(iii) Breach of any fiduciary obligation by any previous declarant or his appointees to
the executive board; or
(iv) Any liability or obligation imposed on the transferor as a result of the transferor's
acts or omissions after the transfer.
(3) A successor to only a right reserved in the declaration to maintain models, sales offices,
and signs (G.S. 47C-2-115), if he is not an affiliate of a declarant, may not exercise any
other special declarant right, and is not subject to any liability or obligation as a declarant,
except the obligation to provide a public offering statement, and any liability arising as a
result thereof.
(4) A successor to all special declarant rights held by his transferor who is not an affiliate of
that declarant and who succeeded to those rights pursuant to a deed in lieu of foreclosure
or a judgment or instrument conveying title to units under subsection (c), may declare his
intention in a recorded instrument to hold those rights solely for transfer to another person.
Thereafter, until transferring all special declarant rights to any person acquiring title to any
unit owned by the successor, or until recording an instrument permitting exercise of all
those rights other than the right held by his transferor to control the executive board in
accordance with the provisions of G.S. 47C-3-103(d) for the duration of any period of
declarant control, and any attempted exercise of those rights is void. So long as a
successor declarant may not exercise special declarant rights under this subsection, he is
not subject to any liability or obligation as a declarant other than liability for his acts and
omissions under G.S. 47C-3-103(d).
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47C-3-105
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 3. MANAGEMENT OF THE CONDOMINIUM
§ 47C-3-105. Termination of contracts and leases of declarant
If entered into by or on behalf of the association before the executive board elected by the unit
owners pursuant to G.S. 47C-3-103(f) takes office, (1) any management contract, employment
contract, or lease of recreational or parking areas or facilities, (2) any other contract or lease between
the association and a declarant or an affiliate of a declarant, or (3) any contract or lease that is not
bona fide or was unconscionable to the unit owners at the time entered into under the circumstances
then prevailing may be terminated without penalty by the association at any time after the executive
board elected by the unit owners pursuant to G.S. 47C-3-103(f) takes office upon not less than 90
days' notice to the other party. Notice of the substance of the provisions of this section shall be set
out in each contract entered into by or on behalf of the association before the executive board elected
by the unit owners pursuant to G.S. 47C-3-103(f) takes office. Failure of the contract to contain such
a provision shall not effect the rights of the association under this section. This section does not apply
to any lease the termination of which would terminate the condominium or reduce its size, unless the
real estate subject to that lease was included in the condominium for the purpose of avoiding the
right of the association to terminate a lease under this section.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47C-3-106
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 3. MANAGEMENT OF THE CONDOMINIUM
§ 47C-3-106. Bylaws
(a) The bylaws of the association shall provide for:
(1) The number of members of the executive board and the titles of the officers of the
association;
(2) Election by the executive board of the officers of the association;
(3) The qualifications, powers and duties, terms of office, and manner of electing and removing
executive board members and officers and filling vacancies;
(4) Which, if any, of its powers the executive board or officers may delegate to other persons
or to a managing agent;
(5) Which of its officers may prepare, execute, certify, and record amendments to the
declaration on behalf of the association; and
(6) The method of amending the bylaws.
(b) Any other matters the association deems necessary or appropriate.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47C-3-107
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 3. MANAGEMENT OF THE CONDOMINIUM
§ 47C-3-107. Upkeep; damages; assessments for damages, fines
(a) Except as provided in G.S. 47C-3-113(h), the association is responsible for causing the
common elements to be maintained, repaired, and replaced when necessary and to assess the
unit owners as necessary to recover the costs of such maintenance, repair, or replacement
except that the cost of maintenance, repair or replacement of a limited common element shall
be assessed as provided in G.S. 47C-3-115(b). Each unit owner is responsible for maintenance,
repair and replacement of his unit. Each unit owner shall afford to the association and when
necessary to another unit owner access through his unit or the limited common element
assigned to his unit reasonably necessary for any such maintenance, repair or replacement
activity.
(b) If damage, for which a unit owner is legally responsible and which is not covered by insurance
provided by the association pursuant to G.S. 47C-3-113 is inflicted on any common element or
limited common element, the association may direct such unit owner to repair such damage or
the association may itself cause the repairs to be made and recover the costs thereof from the
responsible unit owner.
(c) If damage is inflicted on any unit by an agent of the association in the scope of his activities as
such agent, the association is liable to repair such damage or to reimburse the unit owner for
the cost of repairing such damages. The association shall also be liable for any losses to the
unit owner.
(d) The bylaws of the association may in cases when the claim under subsection (b) or (c) is five
hundred dollars ($ 500.00) or less provide for hearings before an adjudicatory panel to
determine if a unit owner is responsible for damages to any common element or whether the
association is responsible for damages to any unit. Such panel shall accord to the party charged
with causing damages notice of the charge, opportunity to be heard and to present evidence,
and notice of the decision. This panel may assess a liability for each damage incident not in
excess of five hundred dollars ($ 500.00) against each unit owner charged or against the
association. Liabilities of unit owners so assessed shall be assessments secured by lien under
G.S. 47C-3-116. Liabilities of the association may be offset by the unit owner against sums
owing the association and if so offset shall reduce the amount of any lien of the association
against the unit at issue.
(e) The declarant alone is liable for maintenance, repair and all other expenses in connection with
real estate subject to development rights.
History
1985 (Reg. Sess., 1986), c. 877, s. 1; 2013-34, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-3-107.1
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 3. MANAGEMENT OF THE CONDOMINIUM
§ 47C-3-107.1. Procedures for fines and suspension of condominium privileges or services
Unless a specific procedure for the imposition of fines or suspension of condominium privileges or
services is provided for in the declaration, a hearing shall be held before the executive board or an
adjudicatory panel appointed by the executive board to determine if any unit owner should be fined or
if condominium privileges or services should be suspended pursuant to the powers granted to the
association in G.S. 47C-3-102(11). Any adjudicatory panel appointed by the executive board shall be
composed of members of the association who are not officers of the association or members of the
executive board. The unit owner charged shall be given notice of the charge, opportunity to be heard
and to present evidence, and notice of the decision. If it is decided that a fine should be imposed, a
fine not to exceed one hundred dollars ($ 100.00) may be imposed for the violation and without
further hearing, for each day more than five days after the decision that the violation occurs. Such
fines shall be assessments secured by liens under G.S. 47C-3-116. If it is decided that a suspension
of condominium privileges or services should be imposed, the suspension may be continued without
further hearing until the violation or delinquency is cured. A unit owner may appeal a decision of an
adjudicatory panel to the full executive board by delivering written notice of appeal to the executive
board within 15 days after the date of the decision. The executive board may affirm, vacate, or
modify the prior decision of the adjudicatory body.
History
1985 (Reg. Sess., 1986), c. 877, s. 1; 1997-456, s. 27; 2005-422, s. 14.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47C-3-108
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 3. MANAGEMENT OF THE CONDOMINIUM
§ 47C-3-108. Meetings
(a) A meeting of the association shall be held at least once each year. Special meetings of the
association may be called by the president, a majority of the executive board, or by unit
owners having twenty percent (20%) or any lower percentage specified in the bylaws of the
votes in the association. Not less than 10 nor more than 50 days in advance of any meeting,
the secretary or other officer specified in the bylaws shall cause notice to be hand-delivered or
sent prepaid by United States mail to the mailing address of each unit or to any other mailing
address designated in writing by the unit owner, or sent by electronic means, including by
electronic mail over the Internet, to an electronic mailing address designated in writing by the
unit owner. The notice of any meeting must state the time and place of the meeting and the
items on the agenda, including the general nature of any proposed amendment to the
declaration or bylaws, any budget changes, and any proposal to remove a director or officer.
(b) Meetings of the executive board shall be held as provided in the bylaws. At regular intervals,
the executive board meeting shall provide unit owners an opportunity to attend a portion of an
executive board meeting and to speak to the executive board about their issues and concerns.
The executive board may place reasonable restrictions on the number of persons who speak on
each side of an issue and may place reasonable time restrictions on persons who speak.
(c) Except as otherwise provided for in the bylaws, meetings of the association and executive
board shall be conducted in accordance with the most recent edition of Robert's Rules of Order
Newly Revised.
History
1985 (Reg. Sess., 1986), c. 877, s. 1; 2004-109, s. 5; 2005-422, s. 15.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47C-3-109
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 3. MANAGEMENT OF THE CONDOMINIUM
§ 47C-3-109. Quorums
(a) Unless the bylaws provide otherwise, a quorum is deemed present throughout any meeting of
the association if persons entitled to cast twenty percent (20%) of the votes which may be cast
for election of the executive board are present in person or by proxy at the beginning of the
meeting.
(b) Unless the bylaws specify a larger percentage, a quorum is deemed present throughout any
meeting of the executive board of persons entitled to cast fifty percent (50%) of the votes on
that board are present at the beginning of the meeting.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47C-3-110
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 3. MANAGEMENT OF THE CONDOMINIUM
§ 47C-3-110. Voting; proxies
(a) If only one of the multiple owners of a unit is present at a meeting of the association, he is
entitled to cast all the votes allocated to that unit. If more than one of the multiple owners are
present, the votes allocated to that unit may be cast only in accordance with the agreement of
a majority in interest of the multiple owners, unless the declaration or bylaws expressly
provides otherwise. Majority agreement is conclusively presumed if any one of the multiple
owners casts the votes allocated to that unit without protest being made promptly to the
person presiding over the meeting by any of the other owners of the unit.
(b) Votes allocated to a unit may be cast pursuant to a proxy duly executed by a unit owner. If a
unit is owned by more than one person, each owner of the unit may vote or register protest to
the casting of votes by the other owners of the unit through a duly executed proxy. A unit
owner may not revoke a proxy given pursuant to this section except by written notice of
revocation delivered to the person presiding over a meeting of the association. A proxy is void
if it is not dated. A proxy terminates one year after its date, unless it specifies a shorter term.
(c) If the declaration requires that votes on specified matters affecting the condominium be cast
by lessees rather than unit owners of leased units: (i) the provisions of subsection (a) and (b)
apply to lessees as if they were unit owners; (ii) unit owners who have leased their units to
other persons may not cast votes on those specified matters; and (iii) lessees are entitled to
notice of meetings, access to records, and other rights respecting those matters as if they were
unit owners. Unit owners must also be given notice, in the manner provided in G.S. 47C-3-108,
of all meetings at which lessees may be entitled to vote.
(d) No votes allocated to a unit owned by the association may be cast.
(e) The declaration may provide that on specified issues only a defined subgroup of unit owners
may vote provided:
(1) The issue being voted on is of special interest solely to members of the subgroup; and
(2) All except de minimis costs that will be incurred based on the vote taken will be assessed
solely against those unit owners entitled to vote.
(f) For purposes of subdivision (e)(1) above an issue to be voted on is not of special interest solely
to a subgroup if it substantially affects the overall appearance of the condominium or
substantially affects living conditions of unit owners not included in the voting subgroup.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47C-3-111
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 3. MANAGEMENT OF THE CONDOMINIUM
§ 47C-3-111. Tort and contract liability
(a) Neither the association nor any unit owner except the declarant is liable for that declarant's
torts in connection with any part of the condominium which that declarant has the
responsibility to maintain.
(b) An action alleging a wrong done by the association must be brought against the association
and not against a unit owner.
(c) If an action is brought against the association for a wrong which occurred during any period of
declarant control, and if the association gives the declarant who then controlled the association
reasonable notice of and an opportunity to defend against the action, such declarant is liable to
the association:
(1) for all tort losses not covered by insurance carried by the association suffered by the
association or that unit owner, and
(2) for all losses which the association would not have incurred but for a breach of contract.
Nothing in this subsection shall be construed to impose strict or absolute liability upon the
declarant for wrongs or actions which occurred during the period of declarant control.
(d) In any case where the declarant is liable to the association under this section, the declarant is
also liable for all litigation expenses, including reasonable attorneys' fees, incurred by the
association. Any statute of limitation affecting the association's right of action under this
section is tolled until the period of declarant control terminates. A unit owner is not precluded
from bringing an action contemplated by this section because he is a unit owner or a member
or officer of the association. Liens resulting from judgments against the association are
governed by G.S. 47C-3-117 (Other Liens Affecting the Condominium).
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47C-3-112
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 3. MANAGEMENT OF THE CONDOMINIUM
§ 47C-3-112. Conveyance or encumbrance of common elements
(a) Portions of the common elements may be conveyed or subjected to a security interest by the
association if persons entitled to cast at least eighty percent (80%) of the votes in the
association, including eighty percent (80%) of the votes allocated to units not owned by a
declarant, or any larger percentage the declaration specifies, agree to that action; provided,
that all the owners of units to which any limited common element is allocated must agree in
order to convey that limited common element or subject it to a security interest. The
declaration may specify a smaller percentage only if all of the units are restricted exclusively to
nonresidential uses. Distribution of the proceeds of the sale of a limited common element shall
be as provided by agreement between the unit owners to which it is allocated and the
association. Proceeds of the sale or financing of a common element (other than a limited
common element) shall be an asset of the association.
(b) An agreement to convey common elements or subject them to a security interest must be
evidenced by the execution of an agreement, or ratifications thereof, in the same manner as a
deed, by the requisite number of unit owners. The agreement must specify a date after which
the agreement will be void unless recorded before that date. The agreement and all
ratifications thereof must be recorded in every county in which a portion of the condominium is
situated, and is effective only upon recordation.
(c) The association, on behalf of the unit owners, may contract to convey common elements, or
subject them to a security interest, but the contract is not enforceable against the association
until approved pursuant to subsections (a) and (b). Thereafter, the association has all powers
necessary and appropriate to effect the conveyance or encumbrance, including the power to
execute deeds or other instruments.
(d) Any purported conveyance, encumbrance, judicial sale or other voluntary transfer of common
elements, unless made pursuant to this section, is void.
(e) A conveyance or encumbrance of common elements pursuant to this section shall not deprive
any unit of its rights of access and support.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47C-3-113
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 3. MANAGEMENT OF THE CONDOMINIUM
§ 47C-3-113. Insurance
(a) Commencing not later than the time of the first conveyance of a unit to a person other than a
declarant, the association shall maintain, to the extent available:
(1) Property insurance on the common elements insuring against all risks of direct physical
loss commonly insured against including fire and extended coverage perils. The total
amount of insurance after application of any deductibles shall be not less than eighty
percent (80%) of the replacement cost of the insured property at the time the insurance is
purchased and at each renewal date, exclusive of land, excavations, foundations and other
items normally excluded from property policies; and
(2) Liability insurance in reasonable amounts, covering all occurrences commonly insured
against death, bodily injury and property damage arising out of or in connection with the
use, ownership, or maintenance of the common elements.
(b) In the case of a building containing units having horizontal boundaries described in the
declaration, the insurance maintained under subdivision (a)(1), to the extent reasonably
available, shall include the units, but need not include improvements and betterments installed
by unit owners.
(c) If the insurance described in subsection (a) or (b) of this section is not reasonably available,
the association promptly shall cause notice of that fact to be hand-delivered or sent prepaid by
United States mail to all unit owners. The declaration may require the association to carry any
other insurance, and the association in any event may carry any other insurance it deems
appropriate to protect the association or the unit owners.
(d) Insurance policies carried pursuant to subsection (a) must provide that:
(1) Each unit owner is an insured person under the policy with respect to liability arising out of
his interest in the common elements or membership in the association;
(2) The insurer waives its right to subrogation under the policy against any unit owner or
members of his household;
(3) No act or omission by any unit owner, unless acting within the scope of his authority on
behalf of the association, will preclude recovery under the policy; and
(4) If, at the time of a loss under the policy, there is other insurance in the name of a unit
owner covering the same risk covered by the policy, the association's policy provides
primary insurance.
(e) Any loss covered by the property policy under subsections (a)(1) and (b) shall be adjusted
with the association, but the insurance proceeds for that loss shall be payable to any insurance
trustee designated for that purpose, or otherwise to the association, and not to any mortgagee
or beneficiary under a deed of trust. The insurance trustee or the association shall hold any
insurance proceeds in trust for unit owners and lienholders as their interests may appear.
Subject to the provisions of subsection (h), the proceeds shall be disbursed first for the repair
or restoration of the damaged property, and unit owners and lienholders are not entitled to
receive payment of any portion of the proceeds unless there is a surplus of proceeds after the
property has been completely repaired or restored, or the condominium is terminated.
N.C. Gen. Stat. § 47C-3-113
(f) An insurance policy issued to the association does not prevent a unit owner from obtaining
insurance for his own benefit.
(g) An insurer that has issued an insurance policy under this section shall issue certificates or
memoranda of insurance to the association and, upon written request, to any unit owner,
mortgagee, or beneficiary under a deed of trust. The insurer issuing the policy may not cancel
or refuse to renew it until 30 days after notice of the proposed cancellation or nonrenewal has
been mailed to the association, each unit owner and each mortgagee or beneficiary under a
deed of trust to whom certificates or memoranda of insurance have been issued at their
respective last known addresses.
(h) Any portion of the condominium for which insurance is required under this section which is
damaged or destroyed shall be repaired or replaced promptly by the association unless (1) the
condominium is terminated, (2) repair or replacement would be illegal under any State or local
health or safety statute or ordinance, or (3) the unit owners decide not to rebuild by an eighty
percent (80%) vote, including one hundred percent (100%) approval of owners of units not to
be rebuilt or owners assigned to limited common elements not to be rebuilt. The cost of repair
or replacement in excess of insurance proceeds and reserves is a common expense. If the
entire condominium is not repaired or replaced, (1) the insurance proceeds attributable to the
damaged common elements shall be used to restore the damaged area to a condition
compatible with the remainder of the condominium, (2) the insurance proceeds attributable to
units and limited common elements which are not rebuilt shall be distributed to the owners of
those units and the owners of the units to which those limited common elements were allocated
or to lienholders, as their interest may appear, and (3) the remainder of the proceeds shall be
distributed to all the unit owners or lienholders, as their interest may appear, in proportion to
their common element interest. If the unit owners vote not to rebuild any unit, that unit's
allocated interests are automatically reallocated upon the vote as if the unit had been
condemned under G.S. 47C-1-107(a), and the association promptly shall prepare, execute, and
record an amendment to the declaration reflecting the reallocations. Notwithstanding the
provisions of this subsection, G.S. 47C-2-118 governs the distribution of insurance proceeds if
the condominium is terminated.
(i) The provisions of this section may be varied or waived in the case of a condominium all of
whose units are restricted to nonresidential use.
History
1985 (Reg. Sess., 1986), c. 877, s. 1; 1998-211, s. 8(a)-(c).
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47C-3-114
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 3. MANAGEMENT OF THE CONDOMINIUM
§ 47C-3-114. Surplus funds
Unless otherwise provided in the declaration, any surplus funds of the association remaining after
payment of or provisions for common expenses and any prepayment of reserves must be paid to the
unit owners in proportion to their common expense liabilities or credited to them to reduce their
future common expense assessments.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47C-3-115
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 3. MANAGEMENT OF THE CONDOMINIUM
§ 47C-3-115. Assessments for common expense
(a) Until the association makes a common expense assessment, the declarant shall pay all the
common expenses. After any assessment has been made by the association, assessments
thereafter must be made at least annually by the association.
(b) Except for assessments under subsections (c), (d), and (e), all common expenses must be
assessed against all the units in accordance with the allocations set forth in the declaration
pursuant to G.S. 47C-2-107(a). Any past due common expense assessment or installment
thereof bears interest at the rate established by the association not exceeding eighteen percent
(18%) per year.
(c) To the extent required by the declaration:
(1) Any common expense associated with the maintenance, repair, or replacement of a limited
common element must be assessed against the units to which that limited common
element is assigned, equally, or in any other proportion that the declaration provides;
(2) Any common expense or portion thereof benefiting fewer than all of the units must be
assessed exclusively against the units benefited; and
(3) The costs of insurance must be assessed in proportion to risk and the costs of utilities must
be assessed in proportion to usage.
(d) Assessments to pay a judgment against the association (G.S. 47C-3-117(a)) may be made
only against the units in the condominium at the time the judgment was entered, in proportion
to their common expense liabilities.
(e) If any common expense is caused by the misconduct of any unit owner, the association may
assess that expense exclusively against his unit.
(f) If common expense liabilities are reallocated, common expense assessments and any
installment thereof not yet due shall be recalculated in accordance with the reallocated
common expense liabilities.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47C-3-116
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 3. MANAGEMENT OF THE CONDOMINIUM
§ 47C-3-116. Lien for sums due the association; enforcement
(a) Any assessment attributable to a unit which remains unpaid for a period of 30 days or longer
shall constitute a lien on that unit when a claim of lien is filed of record in the office of the clerk
of superior court of the county in which the unit is located in the manner provided in this
section. Once filed, a claim of lien secures all sums due the association through the date filed
and any sums due to the association thereafter. Unless the declaration provides otherwise,
fees, charges, late charges and other charges imposed pursuant to G.S. 47C-3-102, 47C-3-
107, 47C-3-107.1, and 47C-3-115 are subject to the claim of lien under this section as well as
any other sums due and payable to the association under the declaration, the provisions of this
Chapter, or as the result of an arbitration, mediation, or judicial decision.
(b) The association must make reasonable and diligent efforts to ensure that its records contain
the unit owner's current mailing address. No fewer than 15 days prior to filing the lien, the
association shall mail a statement of the assessment amount due by first-class mail to the
physical address of the unit and the unit owner's address of record with the association and, if
different, to the address for the unit owner shown on the county tax records for the unit. If the
unit owner is a corporation or limited liability company, the statement shall also be sent by
first-class mail to the mailing address of the registered agent for the corporation or limited
liability company. Notwithstanding anything to the contrary in this Chapter, the association is
not required to mail a statement to an address known to be a vacant unit or to a unit for which
there is no United States postal address.
(c) A claim of lien shall set forth the name and address of the association, the name of the record
owner of the unit at the time the claim of lien is filed, a description of the unit, and the amount
of the lien claimed. A claim of lien may also appoint a trustee to conduct a foreclosure as
provided in subsection (f) of this section. The first page of the claim of lien shall contain the
following statement in print that is in boldface, capital letters, and no smaller than the largest
print used elsewhere in the document:
"THIS DOCUMENT CONSTITUTES A LIEN AGAINST YOUR PROPERTY, AND IF THE LIEN IS NOT
PAID, THE HOMEOWNERS ASSOCIATION MAY PROCEED WITH FORECLOSURE AGAINST YOUR
PROPERTY IN LIKE MANNER AS A MORTGAGE UNDER NORTH CAROLINA LAW."
The person signing the claim of lien on behalf of the association shall attach to and file with the
claim of lien a certificate of service attesting to the attempt of service on the record owner, which
service shall be attempted in accordance with G.S. 1A-1, Rule 4(j), for service of a copy of a
summons and a complaint. If the actual service is not achieved, the person signing the claim of lien
on behalf of the association shall be deemed to have met the requirements of this subsection if
service has been attempted pursuant to both of the following: (i) G.S. 1A-1, Rule 4(j)(1)c, d, or e
and (ii) by mailing a copy of the lien by regular, first-class mail, postage prepaid to the physical
address of the unit and the unit owner's address of record with the association, and, if different, to
the address for the unit owner shown on the county tax records and the county real property
records for the unit. In the event that the owner of record is not a natural person, and actual
service is not achieved, the person signing the claim of lien on behalf of the association shall be
deemed to have met the requirements of this subsection if service has been attempted once
pursuant to the applicable provisions of G.S. 1A-1, Rule 4(j)(3) through G.S. 1A-1, Rule 4(j)(9).
N.C. Gen. Stat. § 47C-3-116
Notwithstanding anything to the contrary in this Chapter, the association is not required to mail a
claim of lien to an address which is known to be a vacant unit or to a unit for which there is no
United States postal address. A lien for unpaid assessments is extinguished unless proceedings to
enforce the lien are instituted within three years after the filing of the claim of lien in the office of
the clerk of superior court.
(d) A claim of lien filed under this section is prior to all liens and encumbrances on a unit except
(i) liens and encumbrances, specifically including, but not limited to, a mortgage or deed of
trust on the unit, recorded before the filing of the claim of lien in the office of the clerk of
superior court and (ii) liens for real estate taxes and other governmental assessments and
charges against the unit. This subsection does not affect the priority of mechanics' or
materialmen's liens.
(e) The association shall be entitled to recover the reasonable attorneys' fees and costs it incurs in
connection with the collection of any sums due. A unit owner may not be required to pay
attorneys' fees and court costs until the unit owner is notified in writing of the association's
intent to seek payment of attorneys' fees, costs, and expenses. The notice must be sent by
first-class mail to the physical address of the unit and the unit owner's address of record with
the association and, if different, to the address for the unit owner shown on the county tax
records for the unit. The association must make reasonable and diligent efforts to ensure that
its records contain the unit owner's current mailing address. Notwithstanding anything to the
contrary in this Chapter, there shall be no requirement that notice under this subsection be
mailed to an address which is known to be a vacant unit or a unit for which there is no United
States postal address. The notice shall set out the outstanding balance due as of the date of
the notice and state that the unit owner has 15 days from the mailing of the notice by first-
class mail to pay the outstanding balance without the attorneys' fees and court costs. If the
unit owner pays the outstanding balance within this period, then the unit owner shall have no
obligation to pay attorneys' fees, costs, or expenses. The notice shall also inform the unit
owner of the opportunity to contact a representative of the association to discuss a payment
schedule for the outstanding balance as provided in subsection (i) of this section and shall
provide the name and telephone number of the representative.
(f) Except as provided in subsection (h) of this section, the association, acting through the
executive board, may foreclose a claim of lien in like manner as a mortgage or deed of trust on
real estate under power of sale, as provided in Article 2A of Chapter 45 of the General Statutes,
if the assessment remains unpaid for 90 days or more. The association shall not foreclose the
claim of lien unless the executive board votes to commence the proceeding against the specific
unit. The following provisions and procedures shall be applicable to and complied with in every
nonjudicial power of sale foreclosure of a claim of lien, and these provisions and procedures
shall control to the extent they are inconsistent or in conflict with the provisions of Article 2A of
Chapter 45 of the General Statutes:
(1) The association shall be deemed to have a power of sale for purposes of enforcement of its
claim of lien.
(2) The terms "mortgagee" and "holder" as used in Article 2A of Chapter 45 of the General
Statutes shall mean the association, except as provided otherwise in this Chapter.
(3) The term "security instrument" as used in Article 2A of Chapter 45 of the General Statutes
shall mean the claim of lien.
(4) The term "trustee" as used in Article 2A of Chapter 45 of the General Statutes shall mean
the person or entity appointed by the association under subdivision (6) of this subsection.
(5) After the association has filed a claim of lien and prior to the commencement of a
nonjudicial foreclosure, the association shall give to the unit owner notice of the
N.C. Gen. Stat. § 47C-3-116
association's intention to commence a nonjudicial foreclosure to enforce its claim of lien.
The notice shall contain the information required in G.S. 45-21.16(c)(5a).
(6) The association shall appoint a trustee to conduct the nonjudicial foreclosure proceeding
and sale. The appointment of the trustee shall be included in the claim of lien or in a
separate instrument filed with the office of the clerk of court in the county in which the unit
is located as an exhibit to the notice of hearing. The association, at its option, may from
time to time remove a trustee previously appointed and appoint a successor trustee by
filing a Substitution of Trustee with the clerk of court in the foreclosure proceeding. Counsel
for the association may be appointed by the association to serve as the trustee and may
serve in that capacity as long as the unit owner does not contest the obligation to pay the
amount of any sums due the association, or the validity, enforcement, or foreclosure of the
claim of lien as provided in subdivision (12) of this subsection. Any trustee appointed
pursuant to this subsection shall have the same fiduciary duties and obligations as a
trustee in the foreclosure of a deed of trust.
(7) If a valid debt, default, and notice to those entitled to receive notice under G.S. 45-
21.16(b) are found to exist, then the clerk of court shall authorize the sale of the property
described in the claim of lien by the trustee.
(8) If, prior to the expiration of the upset bid period provided in G.S. 45-21.27, the unit owner
satisfies the debt secured by the claim of lien and pays all expenses and costs incurred in
filing and enforcing the association assessment lien, including, but not limited to,
advertising costs, attorneys' fees, and the trustee's commission, then the trustee shall
dismiss the foreclosure action and the association shall cancel the claim of lien of record in
accordance with the provisions of G.S. 45-36.3. The unit owner shall have all rights granted
under Article 4 of Chapter 45 of the General Statutes to ensure the association's
satisfaction of the claim of lien.
(9) Any person, other than the trustee, may bid at the foreclosure sale. Unless prohibited in
the declaration or bylaws, the association may bid on the unit at a foreclosure sale directly
or through an agent. If the association or its agent is the high bidder at the sale, the
trustee shall allow the association to pay the costs and expenses of the sale and apply a
credit against the sums due by the unit owner to the association in lieu of paying the bid
price in full.
(10) Upon the expiration of the upset bid period provided in G.S. 45-21.27, the trustee shall
have full power and authority to execute a deed for the unit to the high bidder.
(11) The trustee shall be entitled to a commission for services rendered which shall include
fees, costs, and expenses reasonably incurred by the trustee in connection with the
foreclosure whether or not a sale is held. Except as provided in subdivision (12) of this
subsection, the trustee's commission shall be paid without regard to any limitations on
compensation otherwise provided by law, including, without limitation, the provisions of
G.S. 45-21.15.
(12) If the unit owner does not contest the obligation to pay or the amount of any sums due
the association or the validity, enforcement, or foreclosure of the claim of lien at any time
after the expiration of the 15-day period following notice as required in subsection (b) of
this section, then attorneys' fees and the trustee's commission collectively charged to the
unit owner shall not exceed one thousand two hundred dollars ($ 1,200), not including
costs or expenses incurred. The obligation to pay and the amount of any sums due the
association and the validity, enforcement, or foreclosure of the claim of lien remain
uncontested as long as the unit owner does not dispute, contest, or raise any objection,
defense, offset, or counterclaim as to the amount or validity of any portion of the sums
N.C. Gen. Stat. § 47C-3-116
claimed due by the association or the validity, enforcement, or foreclosure of the claim of
lien. Any judgment, decree, or order in any action brought under this section shall include
costs and reasonable attorneys' fees for the prevailing party.
(13) Unit owners shall be deemed to have the rights and remedies available to mortgagors
under G.S. 45-21.34.
(g) The provisions of subsection (f) of this section do not prohibit or prevent an association from
pursuing judicial foreclosure of a claim of lien, from taking other actions to recover the sums
due the association, or from accepting a deed in lieu of foreclosure. Any judgment, decree, or
order in any judicial foreclosure or civil action relating to the collection of assessments shall
include an award of costs and reasonable attorneys' fees for the prevailing party, which shall
not be subject to the limitation provided in subdivision (f)(12) of this section.
(h) A claim of lien securing a debt consisting solely of fines imposed by the association, interest on
unpaid fines, or attorneys' fees incurred by the association solely associated with fines imposed
by the association may only be enforced by judicial foreclosure, as provided in Article 29A of
Chapter 1 of the General Statutes. In addition, an association shall not levy, charge, or attempt
to collect a service, collection, consulting, or administration fee from any unit owner unless the
fee is expressly allowed in the declaration, and any claim of lien securing a debt consisting
solely of these fees may only be enforced by judicial foreclosure, as provided in Article 29A of
Chapter 1 of the General Statutes.
(i) The association, acting through its executive board and in the board's sole discretion, may
agree to allow payment of an outstanding balance in installments. Neither the association nor
the unit owner is obligated to offer or accept any proposed installment schedule. Reasonable
administrative fees and costs for accepting and processing installments may be added to the
outstanding balance and included in an installment payment schedule. Reasonable attorneys'
fees may be added to the outstanding balance and included in an installment schedule after the
unit owner has been given notice, as required in subsection (e) of this section. Attorneys' fees
incurred in connection with any request that the association agrees to accept payment of all or
any part of sums due in installments shall not be included or considered in the calculation of
fees chargeable under subdivision (f)(12) of this section.
(j) Where the holder of a first mortgage or first deed of trust of record or other purchaser of a unit
obtains title to the unit as a result of foreclosure of a first mortgage or first deed of trust, the
purchaser and its heirs, successors, and assigns shall not be liable for the assessments against
the unit which became due prior to the acquisition of title to the unit by the purchaser. The
unpaid assessments shall be deemed to be common expenses collectible from all the unit
owners, including the purchaser, its heirs, successors, and assigns. For purposes of this
subsection, the term "acquisition of title" means and refers to the recording of a deed
conveying title or the time at which the rights of the parties are fixed following the foreclosure
of a mortgage or deed of trust, whichever occurs first.
History
1985 (Reg. Sess., 1986), c. 877, s. 1; 2005-422, s. 16; 2006-226, s. 14(a); 2009-515, s. 2; 2011-
362, s. 2; 2013-202, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-3-116.1
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 3. MANAGEMENT OF THE CONDOMINIUM
§ 47C-3-116.1. Validation of certain nonjudicial foreclosure proceedings and sales
All nonjudicial foreclosure proceedings commenced by an association before October 1, 2013, and all
sales and transfers of real property as part of those proceedings pursuant to the provisions of this
Chapter, Chapter 47A of the General Statutes, or provisions contained in the declaration of the
condominium, are declared to be valid unless an action to set aside the foreclosure is commenced on
or before October 1, 2013, or within one year after the date of the sale, whichever occurs last.
History
2013-202, s. 2.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-3-117
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 3. MANAGEMENT OF THE CONDOMINIUM
§ 47C-3-117. Other liens affecting the condominium
(a) A judgment for money against the association is not a lien on the common elements, but if
docketed is a lien in favor of the judgment lienholder against all of the units in the
condominium at the time the judgment was entered. No other property of a unit owner is
subject to the claims of creditors of the association.
(b) Notwithstanding the provisions of subsection (a), if the association has granted a security
interest in the common elements to a creditor of the association pursuant to G.S. 47C-3-112,
the holder of that security interest must exercise its right against the common elements before
its judgment lien on any unit may be enforced.
(c) Whether perfected before or after the creation of the condominium, if a lien other than a deed
of trust or mortgage, including a judgment lien or lien attributable to work performed or
materials supplied before creation of the condominium, becomes effective against two or more
units, the unit owner of an affected unit may pay the lienholder the amount of the lien
attributable to his unit, and the lienholder, upon receipt of payment, promptly shall deliver a
release of the lien covering that unit. The amount of the payment must be proportionate to the
ratio which that unit owner's common expense liability bears to the common expense liabilities
of all unit owners whose units are subject to the lien. After payment, the association may not
assess or have a lien against that unit owner's unit for any portion of the common expenses
incurred in connection with that lien.
(d) A judgment against the association shall be indexed in the name of the condominium and the
association and, if so indexed, is notice of the lien against the units.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-3-118
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 3. MANAGEMENT OF THE CONDOMINIUM
§ 47C-3-118. Association records
(a) The association shall keep financial records sufficiently detailed to enable the association to
comply with this chapter. All financial and other records, including records of meetings of the
association and executive board, shall be made reasonably available for examination by any
unit owner and the unit owner's authorized agents as required by the bylaws and by Chapter
55A of the General Statutes if the association is a nonprofit corporation. If the bylaws do not
specify particular records to be maintained, the association shall keep accurate records of all
cash receipts and expenditures and all assets and liabilities. In addition to any specific
information that is required by the bylaws to be assembled and reported to the unit owners at
specified times, the association shall make an annual income and expense statement and
balance sheet available to all unit owners at no charge and within 75 days after the close of the
fiscal year to which the information relates. Notwithstanding the bylaws, a more extensive
compilation, review, or audit of the association's books and records for the current or
immediately preceding fiscal year may be required by a vote of the majority of the executive
board or by the affirmative vote of a majority of the unit owners present and voting in person
or by proxy at any annual meeting or any special meeting duly called for that purpose.
(b) The association, upon written request, shall furnish a unit owner or the unit owner's
authorized agents a statement setting forth the amount of unpaid assessments and other
charges against a unit. The statement shall be furnished within 10 business days after receipt
of the request and is binding on the association, the executive board, and every unit owner.
(c) In addition to the limitations of Article 8 of Chapter 55A of the General Statutes, no financial
payments, including payments made in the form of goods and services, may be made to any
officer or member of the association's executive board or to a business, business associate, or
relative of an officer or member of the executive board, except as expressly provided for in the
bylaws or in payments for services or expenses paid on behalf of the association which are
approved in advance by the executive board.
History
1985 (Reg. Sess., 1986), c. 877, s. 1; 2005-422, s. 17.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-3-119
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 3. MANAGEMENT OF THE CONDOMINIUM
§ 47C-3-119. Association as trustee
With respect to a third person dealing with the association in the association's capacity as a trustee
under G.S. 47C-2-118 following termination or G.S. 47C-3-113 for insurance proceeds, the existence
of trust powers and their proper exercise by the association may be assumed without inquiry. A third
person is not bound to inquire whether the association has power to act as trustee or is properly
exercising trust powers and a third person, without actual knowledge that the association is exceeding
or improperly exercising its powers, is fully protected in dealing with the association as if it possessed
and properly exercised the powers it purports to exercise. A third person is not bound to assure the
proper application of trust assets paid or delivered to the association in its capacity as such trustee.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-3-120
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 3. MANAGEMENT OF THE CONDOMINIUM
N.C. Gen. Stat. § 47C-3-120
Reserved for future codification purposes.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-3-121
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 3. MANAGEMENT OF THE CONDOMINIUM
§ 47C-3-121. American and State flags and political sign displays
Notwithstanding any provision in any declaration of covenants, no restriction on the use of land
shall be construed to:
(1) Regulate or prohibit the display of the flag of the United States or North Carolina, of a size
no greater than four feet by six feet, which is displayed in accordance with or in a manner
consistent with the patriotic customs set forth in 4 U.S.C. §§ 5-10, as amended, governing
the display and use of the flag of the United States unless:
a. For restrictions registered prior to October 1, 2005, the restriction specifically uses the
following terms:
1. Flag of the United States of America;
2. American flag;
3. United States flag; or
4. North Carolina flag.
b. For restrictions registered on or after October 1, 2005, the restriction shall be written on
the first page of the instrument or conveyance in print that is in boldface type, capital
letters, and no smaller than the largest print used elsewhere in the instrument or
conveyance. The restriction shall be construed to regulate or prohibit the display of the
United States or North Carolina flag only if the restriction specifically states: "THIS
DOCUMENT REGULATES OR PROHIBITS THE DISPLAY OF THE FLAG OF THE UNITED
STATES OF AMERICA OR STATE OF NORTH CAROLINA".
This subdivision shall apply to owners of property who display the flag of the United States
or North Carolina on property owned exclusively by them and does not apply to common
areas, easements, rights-of-way, or other areas owned by others.
(2) Regulate or prohibit the indoor or outdoor display of a political sign by an association
member on that member's property owned exclusively by the member, unless:
a. For restrictions registered prior to October 1, 2005, the restriction specifically uses the
term "political signs".
b. For restrictions registered on or after October 1, 2005, the restriction shall be written on
the first page of the instrument or conveyance in print that is in boldface type, capital
letters, and no smaller than the largest print used elsewhere in the instrument or
conveyance. The restriction shall be construed to regulate or prohibit the display of
political signs only if the restriction specifically states: "THIS DOCUMENT REGULATES
OR PROHIBITS THE DISPLAY OF POLITICAL SIGNS".
Even when display of a political sign is permitted under this subdivision, an association (i) may
prohibit the display of political signs earlier than 45 days before the day of the election and later
than seven days after an election day, and (ii) may regulate the size and number of political signs
that may be placed on a member's property if the association's regulation is no more restrictive
than any applicable city, town, or county ordinance that regulates the size and number of political
N.C. Gen. Stat. § 47C-3-121
signs on residential property. If the local government in which the property is located does not
regulate the size and number of political signs on residential property, the association shall permit
at least one political sign with the maximum dimensions of 24 inches by 24 inches on a member's
property. For the purposes of this subdivision, "political sign" means a sign that attempts to
influence the outcome of an election, including supporting or opposing an issue on the election
ballot. This subdivision shall apply to owners of property who display political signs on property
owned exclusively by them and does not apply to common areas, easements, rights-of-way, or
other areas owned by others.
History
2005-422, s. 18; 2006-226, s. 14(b).
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47C-3-122
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 3. MANAGEMENT OF THE CONDOMINIUM
§ 47C-3-122. Irrigation of landscaping
Notwithstanding any provision in any declaration of covenants, no requirement to irrigate
landscaping shall be construed to:
(1) Require the irrigation of landscaping, during any period in which the U.S. Drought Monitor,
as defined in G.S. 143-350, or the Secretary of Environment and Natural Resources has
designated an area in which the association is located as an area of severe, extreme, or
exceptional drought and the Governor, a State agency, or unit of local government has
imposed water conservation measures applicable to the area unless:
a. For covenants registered prior to October 1, 2008, the covenant specifically requires the
irrigation of landscaping notwithstanding water conservation measures imposed by the
Governor, a State agency, or unit of local government. The association may not fine or
otherwise penalize an owner of land for violation of an irrigation requirement during a
period of drought as designated under this subdivision, unless the covenant specifically
authorizes fines or other penalties.
b. For covenants registered on or after October 1, 2008, the covenant must specifically
state that any requirement to irrigate landscaping is suspended to the extent the
requirement would otherwise be prohibited during any period in which the Governor, a
State agency, or unit of local government has imposed water conservation measures.
The association may not fine or otherwise penalize an owner of land for violation of an
irrigation requirement during a drought designated under this subdivision, unless the
covenant authorizes the fines or other penalties. This authorization must be written on
the first page of the covenant in print that is in boldface type, capital letters, and no
smaller than the largest print used elsewhere in the declarations of covenants.
(2) For purposes of this section, the term "landscaping" includes lawns, trees, shrubbery, and
other ornamental or decorative plants.
History
2008-143, s. 19(a).
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-4-101
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 4. PROTECTION OF PURCHASERS
§ 47C-4-101. Applicability; waiver
(a) This Article applies to all units subject to this chapter, except as provided in subsection (b) or
as modified or waived by agreement of purchasers of units in a condominium in which all units
are restricted to nonresidential use.
(b) Neither a public offering statement nor a resale certificate need be prepared or delivered in
the case of a disposition which is:
(1) Gratuitous;
(2) Pursuant to court order;
(3) By a government or governmental agency;
(4) By foreclosure or deed in lieu of foreclosure;
(5) To a person in the business of selling real estate who intends to offer those units to
purchasers; or
(6) Subject to cancellation at any time for any reason by the purchasers without penalty.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-4-102
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 4. PROTECTION OF PURCHASERS
§ 47C-4-102. Liability for public offering statement requirements
(a) Except as provided in subsection (b), a declarant must, prior to the offering of any interest in
a unit to the public, prepare a public offering statement conforming to the requirements of G.S.
47C-4-103, 47C-4-104, 47C-4-105, and 47C-4-106.
(b) A declarant may transfer responsibility for preparation of all or a part of the public offering
statement to a successor declarant or to a person in the business of selling real estate who
intends to offer units in the condominium for his own account. In the event of any such
transfer, the transferor must provide the transferee with any information necessary to enable
the transferee to fulfill the requirements of subsection (a).
(c) Any declarant or other person in the business of selling real estate who offers a unit for his
own account to a purchaser shall deliver a public offering statement in the manner prescribed
in G.S. 47C-4-108(a). The person who prepared all or a part of or delivered the public offering
statement is subject to G.S. 47C-4-117 for any false or misleading statement set forth therein
or for any omission of material fact therefrom with respect to that portion of the public offering
statement which he prepared. If a declarant did not prepare any part of or deliver a public
offering statement, he is not liable for any false or misleading statement set forth therein or for
any omission of material fact therefrom unless he had actual knowledge of the statement or
omission. A declarant, who has transferred responsibility for preparation of all or a part of the
public offering statement under subsection (b), shall be liable when a false or misleading
statement in the public offering statement prepared by another results from the declarant's
failure to provide the information required in subsection (b).
(d) If a unit is a part of a condominium and is part of any other real estate regime in connection
with the sale of which the delivery of a public offering statement is required under the laws of
this State, a single public offering statement conforming to the requirements of G.S. 47C-4-
103, 47C-4-104, 47C-4-105, and 47C-4-106 as those requirements relate to all real estate
regimes in which the unit is located, and to any other requirements imposed under the laws of
this State, may be prepared and delivered in lieu of providing two or more public offering
statements.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-4-103
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 4. PROTECTION OF PURCHASERS
§ 47C-4-103. Public offering statement; general provisions
(a) A public offering statement must contain or fully and accurately disclose:
(1) The name and principal address of the declarant and of the condominium;
(2) A general description of the condominium, including to the extent possible, the types,
number, and declarant's schedule of commencement and completion of construction of
buildings and amenities which declarant anticipates including as part of the condominium;
(3) The number of units in the condominium;
(4) Copies of the recorded or proposed declaration (other than the plats and plans) and any
other recorded covenants, conditions, restrictions and reservations affecting the
condominium; the bylaws, and any rules or regulations of the association; copies of any
contracts and leases to be signed by purchasers at closing, and copies of or a brief
narrative description of any contracts or leases that will or may be subject to cancellation
by the association under G.S. 47C-3-105;
(5) Any current balance sheet and a projected budget for the association, either within or as
an exhibit to the public offering statement, for one year after the date of the first
conveyance to a purchaser, and thereafter the current budget of the association, a
statement of who prepared the budget, and a statement of the budget's assumptions
concerning occupancy and inflation factors. The budget must include, without limitation:
a. A statement of the amount, or a statement that there is no amount, included in the
budget as a reserve for repairs and replacement;
b. A statement of any other reserves;
c. The projected common expense assessment by category of expenditures for the
association; and
d. The projected monthly common expense assessment for each type of unit;
(6) Any services that the declarant provides or expenses that he pays which are not reflected
in the budget and that he expects may become at any subsequent time a common expense
of the association and the projected common expense assessment attributable to each of
those services or expenses for the association and for each type of unit;
(7) Any initial or special fee due from the purchaser at closing, together with a description of
the purpose and method of calculating the fee;
(8) A description of any known or recorded liens, encumbrances or defects affecting the title to
the condominium;
(9) The terms and limitations of any warranties provided by the declarant;
(10) A statement that the purchaser must receive a public offering statement before signing a
contract for purchase and that no conveyance can occur until seven calendar days following
the signing of a contract for purchase; and that the purchaser has the absolute right to
cancel the contract during the seven calendar days period;
N.C. Gen. Stat. § 47C-4-103
(11) A statement of any known or recorded unsatisfied judgments or pending suits against the
association, and the status of any pending suits material to the condominium of which a
declarant has actual knowledge;
(12) A statement that any deposit made in connection with the purchase of a unit will be held
in an escrow account pursuant to G.S. 47C-4-108, together with the name and address of
the escrow agent;
(13) Any restraints on alienation of any portion of the condominium;
(14) A description of the insurance coverage provided for the benefit of unit owners;
(15) Any current or known future fees or charges to be paid by unit owners for the use of the
common elements and other facilities related to the condominium;
(16) The extent to which financial arrangements have been provided for completion of all
improvements labeled "MUST BE BUILT" pursuant to G.S. 47C-4-119;
(17) A brief narrative description of any existing zoning and other land use requirements
governing the condominium; and
(18) A statement that any common element may be alienated or conveyed in accordance with
G.S. 47C-3-112.
(b) A declarant promptly shall amend the public offering statement to report any material change
in the information required by this section and provide a copy of any such material changes to
any purchaser who has executed a contract. If any material change is made in a proposed
declaration after a contract for purchase of a unit has been signed but before conveyance, the
purchaser may rescind the contract within seven days after receipt of the notice of the change.
History
1985 (Reg. Sess., 1986), c. 877, s. 1; 1997-456, s. 27.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-4-104
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 4. PROTECTION OF PURCHASERS
§ 47C-4-104. Same; condominiums subject to developmental rights
If the declaration provides that a condominium is subject to any development rights reserved by
the declarant, the public offering statement shall disclose, in addition to the information required by
G.S. 47C-4-103:
(1) The maximum number of units, and the maximum number of units per acre, that may be
created;
(2) How many or what percentage of the units which may be created will be restricted
exclusively to residential use, or a statement that no representations are made regarding
use restrictions;
(3) If any of the units that may be built within real estate subject to development rights are
not to be restricted exclusively to residential use, a statement, with respect to each portion
of that real estate, of the maximum percentage of the real estate areas and the maximum
percentage of the floor areas of all units that may be created therein that are not restricted
exclusively to residential use;
(4) A brief narrative description of any development rights and of any conditions relating to or
limitations upon the exercise of development rights;
(5) The maximum extent to which each unit's allocated interests may be changed by the
exercise of any development right;
(6) The extent to which any buildings or other improvements that may be erected pursuant to
any development right in any part of the condominium will be compatible with existing
buildings and improvements in the condominium in terms of architectural style, quality of
construction, and size, or a statement that no assurances are made in those regards;
(7) General descriptions of all other improvements that may be made and limited common
elements that may be created within any part of the condominium pursuant to any
development right, or a statement that no assurances are made in that regard;
(8) Any limitations as to the locations of any building or other improvement that may be made
within any part of the condominium pursuant to any development right, or a statement that
no assurances are made in that regard;
(9) A statement that any limited common elements created pursuant to any development right
will be of the same general types and sizes as the limited common elements within other
parts of the condominium, or a statement of the types and sizes planned, or a statement
that no assurances are made in that regard;
(10) A statement that the proportion of limited common elements to units created pursuant to
any development right will be approximately equal to the proportion existing within other
parts of the condominium, or a statement of any other assurances in that regard, or a
statement that no assurances are made in that regard;
(11) A statement that all restrictions in the declaration affecting use, occupancy, and
alienation of units will apply to any units created pursuant to any development right, or
N.C. Gen. Stat. § 47C-4-104
a statement of any differentiations that may be made as to those units, or a statement
that no assurances are made in that regard; and
(12) A statement of the extent to which any assurances made pursuant to this section apply or
do not apply in the event that any development right is not exercised by the declarant.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-4-105
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 4. PROTECTION OF PURCHASERS
§ 47C-4-105. Same; time share
(a) If the declaration provides that ownership or occupancy of any units are or may be owned in
time shares, the public offering statement shall disclose, in addition to the information required
by G.S. 47C-4-103:
(1) The number and identity of units in which time shares may be created;
(2) The total number of time shares that may be created;
(3) The minimum duration of any time shares which may be created; and
(4) The extent to which the creation of time shares will or may affect the enforceability of the
association's lien for assessments provided in G.S. 47C-3-116.
(b) The provisions of subsection (a) apply to all purchasers of units in the condominium. In
addition, the purchaser of time shares shall receive the information required by G.S. 93A-44.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-4-106
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 4. PROTECTION OF PURCHASERS
§ 47C-4-106. Conversion buildings
Condominiums containing conversion buildings shall be subject to the provisions of Article 2 of
Chapter 47A.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-4-107
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 4. PROTECTION OF PURCHASERS
§ 47C-4-107. Same; condominium securities
(a) If an interest in a condominium is registered with the Securities and Exchange Commission of
the United States, a declarant satisfies the requirements relating to the preparation of a public
offering statement of this chapter if he delivers to the purchaser a copy of the public offering
statement filed with the Securities and Exchange Commission to the extent such statement
provides the information required by G.S. 47C-4-103, 47C-4-104, 47C-4-105 and 47C-4-106.
(b) The North Carolina Securities Act, Chapter 78A, shall apply to condominiums deemed to be
investment contracts or to other securities offered with or incident to a condominium. In the
event of such applicability of the North Carolina Securities Act, any real estate broker or
salesman registered under Article 1 of Chapter 93A shall not be subject to the provisions of
G.S. 78A-36. The exemption provided by the preceding sentence shall not apply to any person
who is required to register with the Securities Exchange Commission as a broker or dealer
under the Securities and Exchange Act of 1934.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-4-108
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 4. PROTECTION OF PURCHASERS
§ 47C-4-108. Purchaser's right to cancel
(a) A person required to deliver a public offering statement pursuant to G.S. 47C-4-102(c) shall
provide a purchaser of a unit or the spouse of such purchaser with a copy of the public offering
statement and all amendments thereto before a contract to purchase the unit is executed. No
conveyance pursuant to the contract to purchase may occur until seven calendar days following
the execution of the contract and a purchaser has the absolute right to cancel the contract at
any time during this seven calendar day period. Cancellation is without penalty, and all
payments made by the purchaser before cancellation shall be refunded promptly.
(b) If a purchaser elects to cancel a contract pursuant to subsection (a), he may do so by hand-
delivering notice thereof to the offeror or by mailing notice thereof by prepaid United States
mail to the offeror or to his agent for service of process.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-4-109
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 4. PROTECTION OF PURCHASERS
§ 47C-4-109. Resales of units
Except in the case of a sale where delivery of a public offering statement is required, or unless
exempt under G.S. 47C-4-101(b), a unit owner shall furnish to a prospective purchaser before
conveyance a statement setting forth the monthly common expense assessment and any other fees
payable by unit owners.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-4-110
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 4. PROTECTION OF PURCHASERS
§ 47C-4-110. Escrow of deposits
(a) Any deposit made in connection with the purchase or reservation of a unit from a person
required to deliver a public offering statement pursuant to G.S. 47C-4-102(c) shall be
immediately deposited in a trust or escrow account in an insured bank or savings and loan
association in North Carolina and shall remain in such account for such period of time as a
purchaser is entitled to cancel pursuant to G.S. 47C-4-108 or cancellation by the purchaser
thereunder whichever occurs first. Payments held in such trust or escrow accounts shall be
deemed to belong to the purchaser and not the seller.
(b) Except as provided in G.S. 47C-4-108, nothing in subsection (a) is intended to preclude the
parties to a contract from providing for the use of progress payments by the declarant during
construction.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-4-111
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 4. PROTECTION OF PURCHASERS
§ 47C-4-111. Release of liens or encumbrances
(a) In the case of a sale of a unit where delivery of a public offering statement is required
pursuant to G.S. 47C-4-102(c), a seller shall, at or before conveying a unit, record or furnish to
the purchaser, releases of all liens or encumbrances affecting that unit and its common element
interest which the purchaser does not expressly agree to take subject to or assume, or shall
provide a surety bond or substitute collateral for or insurance against the lien or encumbrance
as provided for liens or encumbrances on real estate in G.S. 44A-16(5) and (6) or insurance
against the lien or encumbrance acceptable to the purchaser. This subsection does not apply to
any real estate which a declarant has the right to withdraw.
(b) Before conveying real estate to the association the declarant shall have that real estate
released from: (1) all liens or encumbrances the foreclosure of which would deprive unit
owners of any right of access to or easement of support of their units, and (2) all other liens or
encumbrances on that real estate unless the public offering statement describes certain real
estate which may be conveyed subject to liens or encumbrances in specified amounts.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-4-112
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 4. PROTECTION OF PURCHASERS
N.C. Gen. Stat. § 47C-4-112
Reserved for future codification purposes.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-4-113
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 4. PROTECTION OF PURCHASERS
§ 47C-4-113. Express warranties of quality
The law relating to express warranties is applicable to the sale of a condominium unit and
supplements the provisions of this chapter; provided, however, that the existence of express
warranties shall not constitute a disclaimer of implied warranties.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-4-114
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 4. PROTECTION OF PURCHASERS
§ 47C-4-114. Implied warranties of quality
The law relating to implied warranties, including but not limited to, implied warranties that the
premises are free from defective materials, constructed in a workmanlike manner, constructed
according to sound engineering and construction standards and that the premises may be used for a
particular purpose, is applicable to the sale of a condominium unit and supplements the provisions of
this chapter.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-4-115
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 4. PROTECTION OF PURCHASERS
§ 47C-4-115. Exclusion of modification of implied warranties of quality
(a) Except as limited by subsection (b) with respect to a purchaser of a unit that may be used for
residential use, implied warranties of quality:
(1) May be excluded or modified by agreement of the parties; and
(2) Are excluded by expression of disclaimer, such as "as is," "with all faults," or other
language which in common understanding calls the buyer's attention to the exclusion of
warranties.
(b) With respect to a purchaser of a unit that may be occupied for residential use, no general
disclaimer of implied warranties of quality is effective, but a declarant and any person in the
business of selling real estate for his own account may disclaim liability in an instrument signed
by the purchaser for a specified defect or specified failure to comply with applicable law, if the
defect or failure entered into and became a part of the basis of the bargain.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-4-116
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 4. PROTECTION OF PURCHASERS
§ 47C-4-116. Statute of limitations for warranties
(a) A judicial proceeding for breach of any obligation arising under G.S. 47C-4-113 or 47C-4-114
must be commenced within the applicable period of limitations set out in Chapter 1 of the North
Carolina General Statutes.
(b) If a warranty of quality explicitly extends to future performance or duration of any
improvement or component of the condominium, the cause of action accrues at the time the
breach is discovered or at the end of the period for which the warranty explicitly extends,
whichever is earlier.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-4-117
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 4. PROTECTION OF PURCHASERS
§ 47C-4-117. Effect of violations on rights of action; attorney's fees
If a declarant or any other person subject to this chapter fails to comply with any provision hereof or
any provision of the declaration or bylaws, any person or class of person adversely affected by that
failure has a claim for appropriate relief. The court may award reasonable attorney's fees to the
prevailing party.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-4-118
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 4. PROTECTION OF PURCHASERS
§ 47C-4-118. Labeling of promotional material
If any improvement contemplated in a condominium is labeled "NEED NOT BE BUILT" on a plat or
plan, or is to be located within a portion of the condominium with respect to which the declarant has
reserved a development right, no promotional material may be displayed or delivered to prospective
purchasers which describes or portrays that improvement unless the description or portrayal of the
improvement in the promotional material is conspicuously labeled or identified as "NEED NOT BE
BUILT".
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-4-119
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 4. PROTECTION OF PURCHASERS
§ 47C-4-119. Declarant's obligation to complete
(a) The declarant shall complete all improvements labeled "MUST BE BUILT" on plats or plans
prepared pursuant to G.S. 47C-2-109.
(b) The declarant is subject to liability for the prompt repair and restoration, to a condition
compatible with the remainder of the condominium, of any portion of the condominium affected
by the exercise of rights reserved pursuant to or created by G.S. 47C-2-110, 47C-2-111, 47C-
2-112, 47C-2-113, 47C-2-115, and 47C-2-116.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47C-4-120
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47C. NORTH CAROLINA
CONDOMINIUM ACT > ARTICLE 4. PROTECTION OF PURCHASERS
§ 47C-4-120. Substantial completion of units
In the case of a sale of a unit where delivery of a public offering statement is required, a contract of
sale may be executed, but no interest in that unit may be conveyed until the declaration is recorded
and the unit is substantially completed, as evidenced by a recorded certificate of substantial
completion executed by an architect licensed under the provisions of Chapter 83 [83A] of the General
Statutes or an engineer registered under the provisions of Chapter 89C of the General Statutes, or by
issuance of a certificate of occupancy authorized by law.
History
1985 (Reg. Sess., 1986), c. 877, s. 1.
General Statutes of North Carolina
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reserved.
N.C. Gen. Stat. § 47F-1-101
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 1. GENERAL PROVISIONS
§ 47F-1-101. Short title
This Chapter shall be known and may be cited as the North Carolina Planned Community Act.
History
1998-199, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47F-1-104
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 1. GENERAL PROVISIONS
§ 47F-1-104. Variation
(a) Except as specifically provided in specific sections of this Chapter, the provisions of this
Chapter may not be varied by the declaration or bylaws. To the extent not inconsistent with the
provisions of this Chapter, the declaration, bylaws, and articles of incorporation form the basis
for the legal authority for the planned community to act as provided in the declaration, bylaws,
and articles of incorporation, and the declaration, bylaws, and articles of incorporation are
enforceable by their terms.
(b) The provisions of this Chapter may not be varied by agreement; however, after breach of a
provision of this Chapter, rights created hereunder may be knowingly waived in writing.
(c) Notwithstanding any of the provisions of this Chapter, a declarant may not act under a power
of attorney or proxy or use any other device to evade the limitations or prohibitions of this
Chapter, the declaration, or the bylaws.
History
1998-199, s. 1; 2013-34, s. 3.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47F-1-103
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 1. GENERAL PROVISIONS
§ 47F-1-103. Definitions
In the declaration and bylaws, unless specifically provided otherwise or the context otherwise
requires, and in this Chapter:
(1) "Affiliate of declarant" means any person who succeeds to any special declarant rights and
who controls, is controlled by, or is under common control with a declarant. A person
"controls" a declarant if the person is any of the following:
a. A general partner, officer, director, or employer of the declarant.
b. Directly or indirectly or acting in concert with one or more other persons, or through
one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies
representing more than twenty percent (20%) of the voting interest in the declarant.
c. Controls in any manner the election of a majority of the directors of the declarant.
d. Has contributed more than twenty percent (20%) of the capital of the declarant.
A person "is controlled by" a declarant if the declarant (i) is a general partner, officer,
director, or employer of the person; (ii) directly or indirectly or acting in concert with one
or more other persons, or through one or more subsidiaries, owns, controls, holds with
power to vote, or holds proxies representing more than twenty percent (20%) of the voting
interest in the person; (iii) controls in any manner the election of a majority of the directors
of the person; or (iv) has contributed more than twenty percent (20%) of the capital of the
person. Control does not exist if the powers described in this subdivision are held solely as
security for an obligation and are not exercised.
(2) "Allocated interests" means the common expense liability and votes in the association
allocated to each lot.
(3) "Association" or "owners' association" means the association organized as allowed under
North Carolina law, including G.S. 47F-3-101.
(4) "Common elements" means any real estate within a planned community owned or leased
by the association, other than a lot.
(5) "Common expenses" means expenditures made by or financial liabilities of the association,
together with any allocations to reserves.
(6) "Common expense liability" means the liability for common expenses allocated to each lot
as permitted by this Chapter, the declaration or otherwise by law.
(7) "Condominium" means real estate, as defined and created under Chapter 47C [of the
General Statutes].
(8) "Cooperative" means real estate owned by a corporation, trust, trustee, partnership, or
unincorporated association, where the governing instruments of that organization provide
that each of the organization's members, partners, stockholders, or beneficiaries is entitled
to exclusive occupancy of a designated portion of that real estate.
(9) "Declarant" means any person or group of persons acting in concert who (i) as part of a
common promotional plan, offers to dispose of the person's or group's interest in a lot not
previously disposed of, or (ii) reserves or succeeds to any special declarant right.
N.C. Gen. Stat. § 47F-1-103
(10) "Declaration" means any instruments, however denominated, that create a planned
community and any amendments to those instruments.
(11) "Development rights" means any right or combination of rights reserved by a declarant in
the declaration (i) to add real estate to a planned community; (ii) to create lots, common
elements, or limited common elements within a planned community; (iii) to subdivide or
combine lots or convert lots into common elements; or (iv) to withdraw real estate from a
planned community.
(12) Reserved.
(13) "Executive board" means the body, regardless of name, designated in the declaration to
act on behalf of the association.
(14), (15) Reserved.
(16) "Leasehold planned community" means a planned community in which all or a portion of
the real estate is subject to a lease, the expiration or termination of which will terminate
the planned community or reduce its size.
(17) "Lessee" means the party entitled to present possession of a leased lot whether lessee,
sublessee, or assignee.
(18) "Limited common element" means a portion of the common elements allocated by the
declaration or by operation of law for the exclusive use of one or more but fewer than all of
the lots.
(19) "Lot" means a physical portion of the planned community designated for separate
ownership or occupancy by a lot owner.
(20) "Lot owner" means a declarant or other person who owns a lot, or a lessee of a lot in a
leasehold planned community whose lease expires simultaneously with any lease the
expiration or termination of which will remove the lot from the planned community, but
does not include a person having an interest in a lot solely as security for an obligation.
(21) "Master association" means an organization described in G.S. 47F-2-120, whether or not
it is also an association described in G.S. 47F-3-101.
(22) "Person" means a natural person, corporation, business trust, estate, trust, partnership,
association, joint venture, government, governmental subdivision or agency, or other legal
or commercial entity.
(23) "Planned community" means real estate with respect to which any person, by virtue of
that person's ownership of a lot, is expressly obligated by a declaration to pay real property
taxes, insurance premiums, or other expenses to maintain, improve, or benefit other lots or
other real estate described in the declaration. For purposes of this act, neither a
cooperative nor a condominium is a planned community, but real estate comprising a
condominium or cooperative may be part of a planned community. "Ownership of a lot"
does not include holding a leasehold interest of less that [than] 20 years in a lot, including
renewal options.
(24) "Purchaser" means any person, other than a declarant or a person in the business of
selling real estate for the purchaser's own account, who by means of a voluntary transfer
acquires a legal or equitable interest in a lot, other than (i) a leasehold interest (including
renewal options) of less than 20 years, or (ii) as security for an obligation.
(25) "Real estate" means any leasehold or other estate or interest in, over, or under land,
including structures, fixtures, and other improvements and interests which by custom,
N.C. Gen. Stat. § 47F-1-103
usage, or law pass with a conveyance of land though not described in the contract of sale
or instrument of conveyance. "Real estate" includes parcels with or without upper or lower
boundaries, and spaces that may be filled with air or water.
(26) "Reasonable attorneys' fees" means attorneys' fees reasonably incurred without regard to
any limitations on attorneys' fees which otherwise may be allowed by law.
(27) Reserved.
(28) "Special declarant rights" means rights reserved for the benefit of a declarant including,
without limitation, any right (i) to complete improvements indicated on plats and plans filed
with the declaration; (ii) to exercise any development right; (iii) to maintain sales offices,
management offices, signs advertising the planned community, and models; (iv) to use
easements through the common elements for the purpose of making improvements within
the planned community or within real estate which may be added to the planned
community; (v) to make the planned community part of a larger planned community or
group of planned communities; (vi) to make the planned community subject to a master
association; or (vii) to appoint or remove any officer or executive board member of the
association or any master association during any period of declarant control.
(29) Reserved.
History
1998-199, s. 1; 2014-57, s. 2.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47F-1-105
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 1. GENERAL PROVISIONS
§ 47F-1-105. Taxation
Extraterritorial common property taxed pursuant to G.S. 105-277.8 shall be assessed, pro rata,
among the lot owners based on the number of lots in the association.
History
2012-157, s. 3.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47F-1-106
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 1. GENERAL PROVISIONS
§ 47F-1-106. Applicability of local ordinances, regulations, and building codes
A zoning, subdivision, or building code or other real estate use law, ordinance, or regulation may not
prohibit a planned community or impose any requirement upon a planned community which it would
not impose upon a substantially similar development under a different form of ownership or
administration. Otherwise, no provision of this Chapter invalidates or modifies any provision of any
zoning, subdivision, or building code or any other real estate use law, ordinance, or regulation. No
local ordinance or regulation may require the recordation of a declaration prior to the date required by
this Chapter.
History
1998-199, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47F-1-107
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 1. GENERAL PROVISIONS
§ 47F-1-107. Eminent domain
(a) If a lot is acquired by eminent domain, or if part of a lot is acquired by eminent domain
leaving the lot owner with a remnant which may not practically or lawfully be used for any
purpose permitted by the declaration, the award shall compensate the lot owner for his lot and
its interest in the common element. Upon acquisition, unless the decree otherwise provides, the
lot's allocated interests are automatically reallocated to the remaining lots in proportion to the
respective allocated interests of those lots before the taking, exclusive of the lot taken.
(b) Except as provided in subsection (a) of this section, if part of a lot is acquired by eminent
domain, the award shall compensate the lot owner for the reduction in value of the lot. Upon
acquisition, unless the decree otherwise provides, (i) that lot's allocated interests are reduced
in proportion to the reduction in the size of the lot, or on any other basis specified in the
declaration, and (ii) the portion of the allocated interests divested from the partially acquired
lot are automatically reallocated to that lot and the remaining lots in proportion to the
respective allocated interests of those lots before the taking, with the partially acquired lot
participating in the reallocation on the basis of its reduced allocated interests.
(c) If there is any reallocation under subsection (a) or (b) of this section, the association shall
promptly prepare, execute, and record an amendment to the declaration reflecting the
reallocations. Any remnant of a lot remaining after part of a lot is taken under this subsection is
thereafter a common element.
(d) If part of the common elements is acquired by eminent domain, the portion of the award
attributable to the common elements taken shall be paid to the association. Unless the
declaration provides otherwise, any portion of the award attributable to the acquisition of a
limited common element shall be apportioned among the owners of the lots to which that
limited common element was allocated at the time of acquisition based on their allocated
interest in the common elements before the taking.
(e) The court decree shall be recorded in every county in which any portion of the planned
community is located.
History
1998-199, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47F-1-108
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 1. GENERAL PROVISIONS
§ 47F-1-108. Supplemental general principles of law applicable
The principles of law and equity as well as other North Carolina statutes (including the provisions of
the North Carolina Nonprofit Corporation Act) supplement the provisions of this Chapter, except to the
extent inconsistent with this Chapter. When these principles or statutes are inconsistent or conflict
with this Chapter, the provisions of this Chapter will control.
History
1998-199, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47F-1-109
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 1. GENERAL PROVISIONS
N.C. Gen. Stat. § 47F-1-109
Reserved for future codification purposes.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47F-1-102
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 1. GENERAL PROVISIONS
§ 47F-1-102. Applicability
(a) This Chapter applies to all planned communities created within this State on or after January
1, 1999, except as otherwise provided in this section.
(b) This Chapter does not apply to a planned community created within this State on or after
January 1, 1999:
(1) Which contains no more than 20 lots (including all lots which may be added or created by
the exercise of development rights) unless the declaration provides or is amended to
provide that this Chapter does apply to that planned community; or
(2) In which all lots are restricted exclusively to nonresidential purposes, unless the declaration
provides or is amended to provide that this Chapter does apply to that planned community.
(c) Notwithstanding the provisions of subsection (a) of this section, G.S. 47F-1-104 (Variation),
G.S. 47F-2-103 (Construction and validity of declaration and bylaws), G.S. 47F-2-117
(Amendment of declaration), G.S. 47F-3-102(1) through (6) and (11) through (17)(Powers of
owners' association), G.S. 47F-3-103(f)(Executive board members and officers), G.S. 47F-3-
107(a), (b), and (c)(Upkeep of planned community; responsibility and assessments for
damages), G.S. 47F-3-107.1 (Procedures for fines and suspension of planned community
privileges or services), G.S. 47F-3-108 (Meetings), G.S. 47F-3-115 (Assessments for common
expenses), G.S. 47F-3-116 (Lien for assessments), G.S. 47F-3-118 (Association records), and
G.S. 47F-3-121 (American and State flags and political sign displays), and G.S. 47F-3-104
(Transfer of Special Declarant Rights) apply to all planned communities created in this State
before January 1, 1999, unless the articles of incorporation or the declaration expressly
provides to the contrary, and G.S. 47F-3-120 (Declaration limits on attorneys' fees) applies to
all planned communities created in this State before January 1, 1999. These sections apply
only with respect to events and circumstances occurring on or after January 1, 1999, and do
not invalidate existing provisions of the declaration, bylaws, or plats and plans of those planned
communities. G.S. 47F-1-103 (Definitions) also applies to all planned communities created in
this State before January 1, 1999, to the extent necessary in construing any of the preceding
sections.
(d) Notwithstanding the provisions of subsections (a) and (c) of this section, any planned
community created prior to January 1, 1999, may elect to make the provisions of this Chapter
applicable to it by amending its declaration to provide that this Chapter shall apply to that
planned community. The amendment may be made by affirmative vote or written agreement
signed by lot owners of lots to which at least sixty-seven percent (67%) of the votes in the
association are allocated or any smaller majority the declaration specifies. To the extent the
procedures and requirements for amendment in the declaration conflict with the provisions of
this subsection, this subsection shall control with respect to any amendment to provide that
this Chapter applies to that planned community.
(e) This Chapter does not apply to planned communities or lots located outside this State.
N.C. Gen. Stat. § 47F-1-102
History
1998-199, s. 1; 2002-112, s. 2; 2004-109, s. 3; 2005-214, s. 1; 2005-422, s. 9; 2006-226, s. 15(a);
2013-34, s. 6; 2014-57, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47F-2-101
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
PLANNED COMMUNITIES
§ 47F-2-101. Creation of the planned community
A declaration creating a planned community shall be executed in the same manner as a deed and
shall be recorded in every county in which any portion of the planned community is located.
History
1998-199, s. 1; 2012-18, s. 1.7.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47F-2-102
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
PLANNED COMMUNITIES
N.C. Gen. Stat. § 47F-2-102
Reserved for future codification purposes.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47F-2-103
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
PLANNED COMMUNITIES
§ 47F-2-103. Construction and validity of declaration and bylaws
(a) To the extent not inconsistent with the provisions of this Chapter, the declaration, bylaws, and
articles of incorporation form the basis for the legal authority for the planned community to act
as provided in the declaration, bylaws, and articles of incorporation, and the declaration,
bylaws, and articles of incorporation are enforceable by their terms. All provisions of the
declaration and bylaws are severable.
(b) The rule against perpetuities may not be applied to defeat any provision of the declaration,
bylaws, rules, or regulations adopted pursuant to G.S. 47F-3-102(1).
(c) In the event of a conflict between the provisions of the declaration and the bylaws, the
declaration prevails except to the extent the declaration is inconsistent with this Chapter.
(d) Title to a lot and common elements is not rendered unmarketable or otherwise affected by
reason of an insubstantial failure of the declaration to comply with this Chapter. Whether a
substantial failure to comply with this Chapter impairs marketability shall be determined by the
law of this State relating to marketability.
History
1998-199, s. 1; 2013-34, s. 4.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47F-2-104
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
PLANNED COMMUNITIES
§§ 47F-2-104 through 47F-2-116
Reserved for future codification purposes.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47F-2-117
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
PLANNED COMMUNITIES
§ 47F-2-117. Amendment of declaration
(a) Except in cases of amendments that may be executed by a declarant under the terms of the
declaration or by certain lot owners under G.S. 47F-2-118(b), the declaration may be amended
only by affirmative vote or written agreement signed by lot owners of lots to which at least
sixty-seven percent (67%) of the votes in the association are allocated, or any larger majority
the declaration specifies or by the declarant if necessary for the exercise of any development
right. The declaration may specify a smaller number only if all of the lots are restricted
exclusively to nonresidential use.
(b) No action to challenge the validity of an amendment adopted pursuant to this section may be
brought more than one year after the amendment is recorded.
(c) Every amendment to the declaration shall be recorded in every county in which any portion of
the planned community is located and is effective only upon recordation.
(d) Any amendment passed pursuant to the provisions of this section or the procedures provided
for in the declaration are presumed valid and enforceable.
(e) Amendments to the declaration required by this Chapter to be recorded by the association
shall be prepared, executed, recorded, and certified in accordance with G.S. 47-41.
History
1998-199, s. 1; 2012-18, s. 1.8; 2013-34, s. 5.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47F-2-118
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
PLANNED COMMUNITIES
§ 47F-2-118. Termination of planned community
(a) Except in the case of taking of all the lots by eminent domain (G.S. 47F-1-107), a planned
community may be terminated only by agreement of lot owners of lots to which at least eighty
percent (80%) of the votes in the association are allocated, or any larger percentage the
declaration specifies. The declaration may specify a smaller percentage only if all of the lots in
the planned community are restricted exclusively to nonresidential uses.
(b) An agreement to terminate shall be evidenced by the execution of a termination agreement,
or ratifications thereof, in the same manner as a deed, by the requisite number of lot owners.
The termination agreement shall specify a date after which the agreement will be void unless it
is recorded before that date. A termination agreement and all ratifications thereof shall be
recorded in every county in which a portion of the planned community is situated and is
effective only upon recordation.
(c) A termination agreement may provide for sale of the common elements, but may not require
that the lots be sold following termination, unless the declaration as originally recorded
provided otherwise or unless all the lot owners consent to the sale. If, pursuant to the
agreement, any real estate in the planned community is to be sold following termination, the
termination agreement shall set forth the minimum terms of the sale.
(d) The association, on behalf of the lot owners, may contract for the sale of real estate in the
planned community, but the contract is not binding until approved pursuant to subsections (a)
and (b) of this section. Until the sale has been concluded and the proceeds thereof distributed,
the association continues in existence with all powers it had before termination. Proceeds of the
sale shall be distributed to lot owners and lienholders as their interests may appear, as
provided in the termination agreement.
(e) If the real estate constituting the planned community is not to be sold following termination,
title to the common elements vests in the lot owners upon termination as tenants in common in
proportion to their respective interests as provided in the termination agreement.
(f) Following termination of the planned community, the proceeds of any sale of real estate,
together with the assets of the association, are held by the association as trustee for lot owners
and holders of liens on the lots as their interests may appear. All other creditors of the
association are to be treated as if they had perfected liens on the common elements
immediately before termination.
(g) If the termination agreement does not provide for the distribution of sales proceeds pursuant
to subsection (d) of this section or the vesting of title pursuant to subsection (e) of this section,
sales proceeds shall be distributed and title shall vest in accordance with each lot owner's
allocated share of common expense liability.
(h) Except as provided in subsection (i) of this section, foreclosure or enforcement of a lien or
encumbrance against the common elements does not of itself terminate the planned
community, and foreclosure or enforcement of a lien or encumbrance against a portion of the
common elements other than withdrawable real estate does not withdraw that portion from the
planned community. Foreclosure or enforcement of a lien or encumbrance against
N.C. Gen. Stat. § 47F-2-118
withdrawable real estate does not of itself withdraw that real estate from the planned
community, but the person taking title thereto has the right to require from the association,
upon request, an amendment excluding the real estate from the planned community.
(i) If a lien or encumbrance against a portion of the real estate comprising the planned community
has priority over the declaration and the lien or encumbrance has not been partially released,
the parties foreclosing the lien or encumbrance may, upon foreclosure, record an instrument
excluding the real estate subject to that lien or encumbrance from the planned community.
History
1998-199, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47F-2-119
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
PLANNED COMMUNITIES
N.C. Gen. Stat. § 47F-2-119
Reserved for future codification purposes.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47F-2-121
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
PLANNED COMMUNITIES
§ 47F-2-121. Merger or consolidation of planned communities
(a) Any two or more planned communities, by agreement of the lot owners as provided in
subsection (b) of this section, may be merged or consolidated into a single planned community.
In the event of a merger or consolidation, unless the agreement otherwise provides, the
resultant planned community is, for all purposes, the legal successor of all of the preexisting
planned communities, and the operations and activities of all associations of the preexisting
planned communities shall be merged or consolidated into a single association which shall hold
all powers, rights, obligations, assets, and liabilities of all preexisting associations.
(b) An agreement of two or more planned communities to merge or consolidate pursuant to
subsection (a) of this section shall be evidenced by an agreement prepared, executed,
recorded, and certified by the president of the association of each of the preexisting planned
communities following approval by owners of lots to which are allocated the percentage of
votes in each planned community required to terminate that planned community. Any such
agreement shall be recorded in every county in which a portion of the planned community is
located and is not effective until recorded.
(c) Every merger or consolidation agreement shall provide for the reallocation of the allocated
interests in the new association among the lots of the resultant planned community either (i)
by stating the reallocations or the formulas upon which they are based or (ii) by stating the
percentage of overall common expense liabilities and votes in the new association which are
allocated to all of the lots comprising each of the preexisting planned communities, and
providing that the portion of the percentages allocated to each lot formerly comprising a part of
the preexisting planned community shall be equal to the percentages of common expense
liabilities and votes in the association allocated to that lot by the declaration of the preexisting
planned community.
History
1998-199, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47F-2-120
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 2. CREATION, ALTERATION, AND TERMINATION OF
PLANNED COMMUNITIES
§ 47F-2-120. Master associations
If the declaration for a planned community provides that any of the powers described in G.S. 47F-3-
102 are to be exercised by or may be delegated to a profit or nonprofit corporation which exercises
those or other powers on behalf of one or more other planned communities or for the benefit of the
lot owners of one or more other planned communities, all provisions of this act applicable to lot
owners' associations apply to any such corporation.
History
1998-199, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47F-3-101
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 3. MANAGEMENT OF PLANNED COMMUNITY
§ 47F-3-101. Organization of owners' association
A lot owners' association shall be incorporated no later than the date the first lot in the planned
community is conveyed. The membership of the association at all times shall consist exclusively of all
the lot owners or, following termination of the planned community, of all persons entitled to
distributions of proceeds under G.S. 47F-2-118. Every association created after the effective date of
this Chapter shall be organized as a nonprofit corporation.
History
1998-199, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47F-3-102
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 3. MANAGEMENT OF PLANNED COMMUNITY
§ 47F-3-102. Powers of owners' association
Unless the articles of incorporation or the declaration expressly provides to the contrary, the
association may:
(1) Adopt and amend bylaws and rules and regulations;
(2) Adopt and amend budgets for revenues, expenditures, and reserves and collect
assessments for common expenses from lot owners;
(3) Hire and discharge managing agents and other employees, agents, and independent
contractors;
(4) Institute, defend, or intervene in litigation or administrative proceedings on matters
affecting the planned community;
(5) Make contracts and incur liabilities;
(6) Regulate the use, maintenance, repair, replacement, and modification of common
elements;
(7) Cause additional improvements to be made as a part of the common elements;
(8) Acquire, hold, encumber, and convey in its own name any right, title, or interest to real or
personal property, provided that common elements may be conveyed or subjected to a
security interest only pursuant to G.S. 47F-3-112;
(9) Grant easements, leases, licenses, and concessions through or over the common elements;
(10) Impose and receive any payments, fees, or charges for the use, rental, or operation of
the common elements other than the limited common elements and for services provided
to lot owners;
(11) Impose reasonable charges for late payment of assessments, not to exceed the greater of
twenty dollars ($ 20.00) per month or ten percent (10%) of any assessment installment
unpaid and, after notice and an opportunity to be heard, suspend privileges or services
provided by the association (except rights of access to lots) during any period that
assessments or other amounts due and owing to the association remain unpaid for a period
of 30 days or longer;
(12) After notice and an opportunity to be heard, impose reasonable fines or suspend
privileges or services provided by the association (except rights of access to lots) for
reasonable periods for violations of the declaration, bylaws, and rules and regulations of
the association;
(13) Impose reasonable charges in connection with the preparation and recordation of
documents, including, without limitation, amendments to the declaration or statements of
unpaid assessments;
(14) Provide for the indemnification of and maintain liability insurance for its officers, executive
board, directors, employees, and agents;
N.C. Gen. Stat. § 47F-3-102
(15) Assign its right to future income, including the right to receive common expense
assessments;
(16) Exercise all other powers that may be exercised in this State by legal entities of the same
type as the association; and
(17) Exercise any other powers necessary and proper for the governance and operation of the
association.
History
1998-199, s. 1; 2004-109, s. 4; 2005-422, s. 1.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47F-3-103
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 3. MANAGEMENT OF PLANNED COMMUNITY
§ 47F-3-103. Executive board members and officers
(a) Except as provided in the declaration, in the bylaws, in subsection (b) of this section, or in
other provisions of this Chapter, the executive board may act in all instances on behalf of the
association. In the performance of their duties, officers and members of the executive board
shall discharge their duties in good faith. Officers shall act according to the standards for
officers of a nonprofit corporation set forth in G.S. 55A-8-42, and members shall act according
to the standards for directors of a nonprofit corporation set forth in G.S. 55A-8-30.
(b) The executive board may not act unilaterally on behalf of the association to amend the
declaration (G.S. 47F-2-117), to terminate the planned community (G.S. 47F-2-118), or to
elect members of the executive board or determine the qualifications, powers and duties, or
terms of office of executive board members (G.S. 47F-3-103(e)), but the executive board may
unilaterally fill vacancies in its membership for the unexpired portion of any term.
Notwithstanding any provision of the declaration or bylaws to the contrary, the lot owners, by a
majority vote of all persons present and entitled to vote at any meeting of the lot owners at
which a quorum is present, may remove any member of the executive board with or without
cause, other than a member appointed by the declarant.
(c) Within 30 days after adoption of any proposed budget for the planned community, the
executive board shall provide to all the lot owners a summary of the budget and a notice of the
meeting to consider ratification of the budget, including a statement that the budget may be
ratified without a quorum. The executive board shall set a date for a meeting of the lot owners
to consider ratification of the budget, such meeting to be held not less than 10 nor more than
60 days after mailing of the summary and notice. There shall be no requirement that a quorum
be present at the meeting. The budget is ratified unless at that meeting a majority of all the lot
owners in the association or any larger vote specified in the declaration rejects the budget. In
the event the proposed budget is rejected, the periodic budget last ratified by the lot owners
shall be continued until such time as the lot owners ratify a subsequent budget proposed by the
executive board.
(d) The declaration may provide for a period of declarant control of the association, during which
period a declarant, or persons designated by the declarant, may appoint and remove the
officers and members of the executive board.
(e) Not later than the termination of any period of declarant control, the lot owners shall elect an
executive board of at least three members, at least a majority of whom shall be lot owners.
The executive board shall elect the officers. The executive board members and officers shall
take office upon election.
(f) The association shall publish the names and addresses of all officers and board members of the
association within 30 days of their election.
N.C. Gen. Stat. § 47F-3-103
History
1998-199, s. 1; 2005-422, ss. 2, 3.
General Statutes of North Carolina
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reserved
N.C. Gen. Stat. § 47F-3-104
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 3. MANAGEMENT OF PLANNED COMMUNITY
§ 47F-3-104. Transfer of special declarant rights
(a) No special declarant right (G.S. 47F-1-103(28)) defined under this Chapter may be transferred
except by an instrument evidencing the transfer recorded in every county in which any portion
of the planned community is located. Except for the transfer of declarant rights pursuant to
subsection (c) of this section, the instrument is not effective unless executed by the transferee.
(b) Upon transfer of any special declarant right, the liability of a transferor declarant is as follows:
(1) A transferor is not relieved of any obligation or liability arising before the transfer and
remains liable for warranty obligations imposed upon the transferor by this Chapter. Lack
of privity does not deprive any lot owner of standing to maintain an action to enforce any
obligation of the transferor.
(2) If a successor to any special declarant right is an affiliate of a declarant (G.S. 47F-1-
103(1)), the transferor is jointly and severally liable with the successor for any obligations
or liabilities of the successor relating to the planned community.
(3) If a transferor retains any special declarant rights but transfers other special declarant
rights to a successor who is not an affiliate of the declarant, the transferor is liable for any
obligations or liabilities imposed on a declarant by this Chapter or by the declaration
relating to the retained special declarant rights and arising after the transfer.
(4) A transferor has no liability for any act or omission or any breach of a contractual or
warranty obligation arising from the exercise of a special declarant right by a successor
declarant who is not an affiliate of the transferor.
(c) Unless otherwise provided in a mortgage instrument, deed of trust, or other agreement
creating a security interest, in case of foreclosure of a security interest, sale by a trustee under
an agreement creating a security interest, tax sale, judicial sale, or sale under Bankruptcy Code
or receivership proceedings of any lots owned by a declarant, or real estate in a planned
community subject to development rights, or real estate subject to development rights for a
planned community, a person acquiring title to all the property being foreclosed or sold, but
only upon the person's request in an instrument recorded in every county in which any portion
of the planned community is located, succeeds to all special declarant rights (G.S. 47F-1-
103(28)) related to that property held by that declarant and requested by the person acquiring
title. The judgment or instrument conveying title shall provide for transfer of only the special
declarant rights requested. The mortgage, deed of trust, tax lien, or other conveyance to be
foreclosed under this subsection shall not be required to contain specific reference to an
assignment of special declarant rights but shall be deemed to include the special declarant
rights as part of the right, title, and interest encumbered by the mortgage, deed of trust, tax
lien, or other conveyance.
(d) Upon foreclosure of a security interest, sale by a trustee under an agreement creating a
security interest, tax sale, judicial sale, or sale under Bankruptcy Code or receivership
proceedings of all interests in a planned community owned by a declarant, the declarant
N.C. Gen. Stat. § 47F-3-104
ceases to have any special declarant rights and the period of declarant control (G.S. 47F-3-
103(d)) terminates unless either of the following applies:
(1) The judgment or instrument conveying title provides for transfer of all special declarant
rights held by that declarant to a successor declarant.
(2) The declarant transferred special declarant rights related to the appointment of executive
board members to another person pursuant to this section prior to the foreclosure or sale.
(e) The liabilities and obligations of a person who succeeds to special declarant rights are as
follows:
(1) A successor to any special declarant right who is an affiliate of a declarant is subject to all
obligations and liabilities imposed on the transferor by this Chapter or by the declaration.
(2) Unless otherwise specified in the declaration as to the holder of a mortgage instrument,
deed of trust, or other agreement creating a security interest, in case of foreclosure of a
security interest, sale by a trustee under an agreement creating a security interest, tax
sale, judicial sale, or sale under Bankruptcy Code or receivership proceedings, a successor
to any special declarant right who is not an affiliate of a declarant, other than a successor
described in subdivision (3) or (4) of this subsection, is subject to the obligations and
liabilities expressly imposed by this Chapter or the declaration:
a. On a declarant which relate to the successor's exercise or nonexercise of special
declarant rights; or
b. On his or her transferor, other than:
1. Misrepresentations by the transferor or any previous declarant;
2. Warranty obligations on improvements made by the transferor or any previous
declarant or made before the planned community was created;
3. Obligations and liabilities arising out of contractual agreements between the
transferor or any previous declarant and third parties other than the declaration;
4. Breach of any fiduciary obligation by the transferor or any previous declarant or his
or her appointees to the executive board; or
5. Any liability or obligation imposed on the transferor or any previous declarant as a
result of the transferor's acts or omissions after the transfer.
(3) A successor to only a right reserved in the declaration to maintain sales offices,
management offices, signs advertising the planned community, and models, if the
successor is not an affiliate of the declarant, may not exercise any other special declarant
right and is not subject to any liability or obligation as a declarant.
(4) A successor to all special declarant rights held by a transferor who is not an affiliate of the
declarant who succeeded to those rights pursuant to a deed or other instrument of
conveyance in lieu of foreclosure or a judgment or instrument conveying title under
subsection (c) of this section may declare in a recorded instrument the intention to hold
those rights solely for transfer to another person. Thereafter, until transferring all special
declarant rights to any person acquiring title to any lot or real estate subject to
development rights owned by the successor, or until recording an instrument permitting
exercise of all those rights, that successor may not exercise any of those rights other than
any right held by his or her transferor to control the executive board in accordance with
G.S. 47F-3-103(d) for the duration of any period of declarant control, and any attempted
exercise of those rights is void. So long as a successor declarant does not have the right
N.C. Gen. Stat. § 47F-3-104
to exercise special declarant rights under this subsection, the successor declarant is not
subject to any liability or obligation as a declarant other than liability for his or her acts
and omissions under G.S. 47F-3-103(d).
(f) Nothing in this section subjects any successor to a special declarant right to any claims against
or other obligations of a transferor declarant other than claims and obligations expressly arising
under this Chapter or the declaration.
(g) For purposes of this section, "assignment of declarant rights" shall include any assignment by
the declarant of special declarant rights to a person, including, without limitation, an
assignment pursuant to this section.
History
1998-199, s. 1; 2014-57, s. 3.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47F-3-105
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 3. MANAGEMENT OF PLANNED COMMUNITY
§ 47F-3-105. Termination of contracts and leases of declarant
If entered into before the executive board elected by the lot owners pursuant to G.S. 47F-3-103(e)
takes office, any contract or lease affecting or related to the planned community that is not bona fide
or was unconscionable to the lot owners at the time entered into under the circumstances then
prevailing, may be terminated without penalty by the association at any time after the executive
board elected by the lot owners pursuant to G.S. 47F-3-103(e) takes office upon not less than 90
days' notice to the other party.
History
1998-199, s. 1.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47F-3-106
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 3. MANAGEMENT OF PLANNED COMMUNITY
§ 47F-3-106. Bylaws
(a) The bylaws of the association shall provide for:
(1) The number of members of the executive board and the titles of the officers of the
association;
(2) Election by the executive board of officers of the association;
(3) The qualifications, powers and duties, terms of office, and manner of electing and removing
executive board members and officers and filling vacancies;
(4) Which, if any, of its powers the executive board or officers may delegate to other persons
or to a managing agent;
(5) Which of its officers may prepare, execute, certify, and record amendments to the
declaration on behalf of the association; and
(6) The method of amending the bylaws.
(b) The bylaws may provide for any other matters the association deems necessary and
appropriate.
History
1998-199, s. 1.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47F-3-107
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 3. MANAGEMENT OF PLANNED COMMUNITY
§ 47F-3-107. Upkeep of planned community; responsibility and assessments for damages
(a) Except as otherwise provided in the declaration, G.S. 47F-3-113(h) or subsection (b) of this
section, the association is responsible for causing the common elements to be maintained,
repaired, and replaced when necessary and to assess the lot owners as necessary to recover
the costs of such maintenance, repair, or replacement except that the costs of maintenance,
repair, or replacement of a limited common element shall be assessed as provided in G.S. 47F-
3-115(c)(1). Except as otherwise provided in the declaration, each lot owner is responsible for
the maintenance and repair of his lot and any improvements thereon. Each lot owner shall
afford to the association and when necessary to another lot owner access through the lot
owner's lot or the limited common element allocated to the lot owner's lot reasonably
necessary for any such maintenance, repair, or replacement activity.
(b) If a lot owner is legally responsible for damage inflicted on any common element or limited
common element, the association may direct such lot owner to repair such damage, or the
association may itself cause the repairs to be made and recover damages from the responsible
lot owner.
(c) If damage is inflicted on any lot by an agent of the association in the scope of the agent's
activities as such agent, the association is liable to repair such damage or to reimburse the lot
owner for the cost of repairing such damages. The association shall also be liable for any losses
to the lot owner.
(d) When the claim under subsection (b) or (c) of this section is less than or equal to the
jurisdictional amount established for small claims by G.S. 7A-210, any aggrieved party may
request that a hearing be held before an adjudicatory panel appointed by the executive board
to determine if a lot owner is responsible for damages to any common element or the
association is responsible for damages to any lot. If the executive board fails to appoint an
adjudicatory panel to hear such matters, hearings under this section shall be held before the
executive board. Such panel shall accord to the party charged with causing damages notice of
the charge, opportunity to be heard and to present evidence, and notice of the decision. This
panel may assess liability for each damage incident against each lot owner charged or against
the association not in excess of the jurisdictional amount established for small claims by G.S.
7A-210. When the claim under subsection (b) or (c) of this section exceeds the jurisdictional
amount established for small claims by G.S. 7A-210, liability of any lot owner charged or the
association shall be determined as otherwise provided by law. Liabilities of lot owners
determined by adjudicatory hearing or as otherwise provided by law shall be assessments
secured by lien under G.S. 47F-3-116. Liabilities of the association determined by adjudicatory
hearing or as otherwise provided by law may be offset by the lot owner against sums owing to
the association and if so offset, shall reduce the amount of any lien of the association against
the lot at issue.
(e) The association 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
History
1998-199, s. 1; 2013-34, s. 2.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47F-3-107.1
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 3. MANAGEMENT OF PLANNED COMMUNITY
§ 47F-3-107.1. Procedures for fines and suspension of planned community privileges or
services
Unless a specific procedure for the imposition of fines or suspension of planned community privileges
or services is provided for in the declaration, a hearing shall be held before the executive board or an
adjudicatory panel appointed by the executive board to determine if any lot owner should be fined or
if planned community privileges or services should be suspended pursuant to the powers granted to
the association in G.S. 47F-3-102(11) and (12). Any adjudicatory panel appointed by the executive
board shall be composed of members of the association who are not officers of the association or
members of the executive board. The lot owner charged shall be given notice of the charge,
opportunity to be heard and to present evidence, and notice of the decision. If it is decided that a fine
should be imposed, a fine not to exceed one hundred dollars ($ 100.00) may be imposed for the
violation and without further hearing, for each day more than five days after the decision that the
violation occurs. Such fines shall be shall be assessments secured by liens under G.S. 47F-3-116. If it
is decided that a suspension of planned community privileges or services should be imposed, the
suspension may be continued without further hearing until the violation or delinquency is cured. The
lot owner may appeal the decision of an adjudicatory panel to the full executive board by delivering
written notice of appeal to the executive board within 15 days after the date of the decision. The
executive board may affirm, vacate, or modify the prior decision of the adjudicatory body.
History
1997-456, s. 27; 1998-199, s. 1; 2005-422, s. 4.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47F-3-108
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 3. MANAGEMENT OF PLANNED COMMUNITY
§ 47F-3-108. Meetings
(a) A meeting of the association shall be held at least once each year. Special meetings of the
association may be called by the president, a majority of the executive board, or by lot owners
having ten percent (10%), or any lower percentage specified in the bylaws, of the votes in the
association. Not less than 10 nor more than 60 days in advance of any meeting, the secretary
or other officer specified in the bylaws shall cause notice to be hand-delivered or sent prepaid
by United States mail to the mailing address of each lot or to any other mailing address
designated in writing by the lot owner, or sent by electronic means, including by electronic mail
over the Internet, to an electronic mailing address designated in writing by the lot owner. The
notice of any meeting shall state the time and place of the meeting and the items on the
agenda, including the general nature of any proposed amendment to the declaration or bylaws,
any budget changes, and any proposal to remove a director or officer.
(b) Meetings of the executive board shall be held as provided in the bylaws. At regular intervals,
the executive board meeting shall provide lot owners an opportunity to attend a portion of an
executive board meeting and to speak to the executive board about their issues or concerns.
The executive board may place reasonable restrictions on the number of persons who speak on
each side of an issue and may place reasonable time restrictions on persons who speak.
(c) Except as otherwise provided in the bylaws, meetings of the association and the executive
board shall be conducted in accordance with the most recent edition of Robert's Rules of Order
Newly Revised.
History
1998-199, s. 1; 2004-109, s. 6; 2005-422, s. 5.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47F-3-109
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 3. MANAGEMENT OF PLANNED COMMUNITY
§ 47F-3-109. Quorums
(a) Unless the bylaws provide otherwise, a quorum is present throughout any meeting of the
association if persons entitled to cast ten percent (10%) of the votes which may be cast for
election of the executive board are present in person or by proxy at the beginning of the
meeting.
(b) Unless the bylaws specify a larger percentage, a quorum is deemed present throughout any
meeting of the executive board if persons entitled to cast fifty percent (50%) of the votes on
that board are present at the beginning of the meeting.
(c) In the event business cannot be conducted at any meeting because a quorum is not present,
that meeting may be adjourned to a later date by the affirmative vote of a majority of those
present in person or by proxy. Notwithstanding any provision to the contrary in the declaration
or the bylaws, the quorum requirement at the next meeting shall be one-half of the quorum
requirement applicable to the meeting adjourned for lack of a quorum. This provision shall
continue to reduce the quorum by fifty percent (50%) from that required at the previous
meeting, as previously reduced, until such time as a quorum is present and business can be
conducted.
History
1998-199, s. 1.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47F-3-110
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 3. MANAGEMENT OF PLANNED COMMUNITY
§ 47F-3-110. Voting; proxies
(a) If only one of the multiple owners of a lot is present at a meeting of the association, the owner
who is present is entitled to cast all the votes allocated to that lot. If more than one of the
multiple owners are present, the votes allocated to that lot may be cast only in accordance with
the agreement of a majority in interest of the multiple owners, unless the declaration or bylaws
expressly provide otherwise. Majority agreement is conclusively presumed if any one of the
multiple owners casts the votes allocated to that lot without protest being made promptly to
the person presiding over the meeting by any of the other owners of the lot.
(b) Votes allocated to a lot may be cast pursuant to a proxy duly executed by a lot owner. If a lot
is owned by more than one person, each owner of the lot may vote or register protest to the
casting of votes by the other owners of the lot through a duly executed proxy. A lot owner may
not revoke a proxy given pursuant to this section except by actual notice of revocation to the
person presiding over a meeting of the association. A proxy is void if it is not dated. A proxy
terminates 11 months after its date, unless it specifies a shorter term.
(c) If the declaration requires that votes on specified matters affecting the planned community be
cast by lessees rather than lot owners of leased lots, (i) the provisions of subsections (a) and
(b) of this section apply to lessees as if they were lot owners; (ii) lot owners who have leased
their lots to other persons may not cast votes on those specified matters; and (iii) lessees are
entitled to notice of meetings, access to records, and other rights respecting those matters as if
they were lot owners. Lot owners shall also be given notice, in the manner provided in G.S.
47F-3-108, of all meetings at which lessees may be entitled to vote.
(d) No votes allocated to a lot owned by the association may be cast.
(e) The declaration may provide that on specified issues only a defined subgroup of lot owners
may vote provided:
(1) The issue being voted is of special interest solely to the members of the subgroup; and
(2) All except de minimis cost that will be incurred based on the vote taken will be assessed
solely against those lot owners entitled to vote.
(f) For purposes of subdivision (e)(1) above, an issue to be voted on is not a special interest solely
to a subgroup if it substantially affects the overall appearance of the planned community or
substantially affects living conditions of lot owners not included in the voting subgroup.
History
1998-199, s. 1.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47F-3-111
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 3. MANAGEMENT OF PLANNED COMMUNITY
§ 47F-3-111. Tort and contract liability
(a) Neither the association nor any lot owner except the declarant is liable for that declarant's
torts in connection with any part of the planned community which that declarant has the
responsibility to maintain.
(b) An action alleging a wrong done by the association shall be brought against the association
and not against a lot owner.
(c) Any statute of limitation affecting the association's right of action under this section is tolled
until the period of declarant control terminates. A lot owner is not precluded from bringing an
action contemplated by this section because the person is a lot owner or a member of the
association.
History
1998-199, s. 1.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47F-3-112
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 3. MANAGEMENT OF PLANNED COMMUNITY
§ 47F-3-112. Conveyance or encumbrance of common elements
(a) Portions of the common elements may be conveyed or subjected to a security interest by the
association if persons entitled to cast at least eighty percent (80%) of the votes in the
association, or any larger percentage the declaration specifies, agree in writing to that action;
provided that all the owners of lots to which any limited common element is allocated shall
agree in order to convey that limited common element or subject it to a security interest. The
declaration may specify a smaller percentage only if all the lots are restricted exclusively to
nonresidential uses. Distribution of proceeds of the sale of a limited common element shall be
as provided by agreement between the lot owners to which it is allocated and the association.
Proceeds of the sale or financing of a common element (other than a limited common element)
shall be an asset of the association.
(b) The association, on behalf of the lot owners, may contract to convey common elements or
subject them to a security interest, but the contract is not enforceable against the association
until approved pursuant to subsection (a) of this section. Thereafter, the association has all
powers necessary and appropriate to effect the conveyance or encumbrance, free and clear of
any interest of any lot owner or the association in or to the common element conveyed or
encumbered, including the power to execute deeds or other instruments.
(c) Any purported conveyance, encumbrance, or other voluntary transfer of common elements,
unless made pursuant to this section is void.
(d) No conveyance or encumbrance of common elements pursuant to this section may deprive
any lot of its rights of access and support.
History
1998-199, s. 1.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47F-3-113
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 3. MANAGEMENT OF PLANNED COMMUNITY
§ 47F-3-113. Insurance
(a) Commencing not later than the time of the first conveyance of a lot to a person other than a
declarant, the association shall maintain, to the extent reasonably available:
(1) Property insurance on the common elements insuring against all risks of direct physical
loss commonly insured against including fire and extended coverage perils. The total
amount of insurance after application of any deductibles shall be not less than eighty
percent (80%) of the replacement cost of the insured property at the time the insurance is
purchased and at each renewal date, exclusive of land, excavations, foundations, and other
items normally excluded from property policies; and
(2) Liability insurance in reasonable amounts, covering all occurrences commonly insured
against for death, bodily injury, and property damage arising out of or in connection with
the use, ownership, or maintenance of the common elements.
(b) If the insurance described in subsection (a) of this section is not reasonably available, the
association promptly shall cause notice of that fact to be hand-delivered or sent prepaid by
United States mail to all lot owners. The declaration may require the association to carry any
other insurance, and the association in any event may carry any other insurance it deems
appropriate to protect the association or the lot owners.
(c) Insurance policies carried pursuant to subsection (a) of this section shall provide that:
(1) Each lot owner is an insured person under the policy to the extent of the lot owner's
insurable interest;
(2) The insurer waives its right to subrogation under the policy against any lot owner or
member of the lot owner's household;
(3) No act or omission by any lot owner, unless acting within the scope of the owner's
authority on behalf of the association, will preclude recovery under the policy; and
(4) If, at the time of a loss under the policy, there is other insurance in the name of a lot
owner covering the same risk covered by the policy, the association's policy provides
primary insurance.
(d) Any loss covered by the property policy under subdivision (a)(1) of this section shall be
adjusted with the association, but the insurance proceeds for that loss are payable to any
insurance trustee designated for that purpose, or otherwise to the association, and not to any
mortgagee or beneficiary under a deed of trust. The insurance trustee or the association shall
hold any insurance proceeds in trust for lot owners and lienholders as their interests may
appear. Subject to the provisions of subsection (h) of this section, the proceeds shall be
disbursed first for the repair or restoration of the damaged property, and lot owners and
lienholders are not entitled to receive payment of any portion of the proceeds unless there is a
surplus of proceeds after the property has been completely repaired or restored, or the planned
community is terminated.
(e) An insurance policy issued to the association does not prevent a lot owner from obtaining
insurance for the lot owner's own benefit.
N.C. Gen. Stat. § 47F-3-113
(f) An insurer that has issued an insurance policy under this section shall issue certificates or
memoranda of insurance to the association and, upon written request, to any lot owner,
mortgagee, or beneficiary under a deed of trust. The insurer issuing the policy may not cancel
or refuse to renew it until 30 days after notice of the proposed cancellation or nonrenewal has
been mailed to the association, each lot owner, and each mortgagee or beneficiary under a
deed of trust to whom certificates or memoranda of insurance have been issued at their
respective last known addresses.
(g) Any portion of the planned community for which insurance is required under subdivision (a)(1)
of this section which is damaged or destroyed shall be repaired or replaced promptly by the
association unless (i) the planned community is terminated, (ii) repair or replacement would be
illegal under any State or local health or safety statute or ordinance, or (iii) the lot owners
decide not to rebuild by an eighty percent (80%) vote, including one hundred percent (100%)
approval of owners assigned to the limited common elements not to be rebuilt. The cost of
repair or replacement in excess of insurance proceeds and reserves is a common expense. If
any portion of the planned community is not repaired or replaced, (i) the insurance proceeds
attributable to the damaged common elements shall be used to restore the damaged area to a
condition compatible with the remainder of the planned community, (ii) the insurance proceeds
attributable to limited common elements which are not rebuilt shall be distributed to the
owners of the lots to which those limited common elements were allocated, or to lienholders, as
their interests may appear, and (iii) the remainder of the proceeds shall be distributed to all the
lot owners or lienholders, as their interests may appear, in proportion to the common expense
liabilities of all the lots. Notwithstanding the provisions of this subsection, G.S. 47F-2-118
(termination of the planned community) governs the distribution of insurance proceeds if the
planned community is terminated.
(h) The provisions of this section may be varied or waived in the case of a planned community all
of whose lots are restricted to nonresidential use.
History
1998-199, s. 1.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47F-3-114
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 3. MANAGEMENT OF PLANNED COMMUNITY
§ 47F-3-114. Surplus funds
Unless otherwise provided in the declaration, any surplus funds of the association remaining after
payment of or provision for common expenses, the funding of a reasonable operating expense
surplus, and any prepayment of reserves shall be paid to the lot owners in proportion to their
common expense liabilities or credited to them to reduce their future common expense assessments.
History
1998-199, s. 1.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47F-3-115
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 3. MANAGEMENT OF PLANNED COMMUNITY
§ 47F-3-115. Assessments for common expenses
(a) Except as otherwise provided in the declaration, until the association makes a common
expense assessment, the declarant shall pay all common expenses. After any assessment has
been made by the association, assessments thereafter shall be made at least annually.
(b) Except for assessments under subsections (c), (d), and (e) of this section, all common
expenses shall be assessed against all the lots in accordance with the allocations set forth in
the declaration. Any past-due common expense assessment or installment thereof bears
interest at the rate established by the association not exceeding eighteen percent (18%) per
year. For planned communities created prior to January 1, 1999, interest may be charged on
any past-due common expense assessment or installment only if the declaration provides for
interest charges, and where the declaration does not otherwise specify the interest rate, the
rate may not exceed eighteen percent (18%) per year.
(c) To the extent required by the declaration:
(1) Any common expense associated with the maintenance, repair, or replacement of a limited
common element shall be assessed against the lots to which that limited common element
is assigned, equally, or in any other proportion that the declaration provides;
(2) Any common expense or portion thereof benefiting fewer than all of the lots shall be
assessed exclusively against the lots benefitted; and
(3) The costs of insurance shall be assessed in proportion to risk and the costs of utilities shall
be assessed in proportion to usage.
(d) Assessments to pay a judgment against the association may be made only against the lots in
the planned community at the time the judgment was entered, in proportion to their common
expense liabilities.
(e) If any common expense is caused by the negligence or misconduct of any lot owner or
occupant, the association may assess that expense exclusively against that lot owner or
occupant's lot.
(f) If common expense liabilities are reallocated, common expense assessments and any
installment thereof not yet due shall be recalculated in accordance with the reallocated
common expense liabilities.
History
1998-199, s. 1.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47F-3-116
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 3. MANAGEMENT OF PLANNED COMMUNITY
§ 47F-3-116. Lien for sums due the association; enforcement
(a) Any assessment attributable to a lot which remains unpaid for a period of 30 days or longer
shall constitute a lien on that lot when a claim of lien is filed of record in the office of the clerk
of superior court of the county in which the lot is located in the manner provided in this section.
Once filed, a claim of lien secures all sums due the association through the date filed and any
sums due to the association thereafter. Unless the declaration provides otherwise, fees,
charges, late charges, and other charges imposed pursuant to G.S. 47F-3-102, 47F-3-107,
47F-3-107.1, and 47F-3-115 are subject to the claim of lien under this section as well as any
other sums due and payable to the association under the declaration, the provisions of this
Chapter, or as the result of an arbitration, mediation, or judicial decision.
(b) The association must make reasonable and diligent efforts to ensure that its records contain
the lot owner's current mailing address. No fewer than 15 days prior to filing the lien, the
association shall mail a statement of the assessment amount due by first-class mail to the
physical address of the lot and the lot owner's address of record with the association and, if
different, to the address for the lot owner shown on the county tax records for the lot. If the lot
owner is a corporation or limited liability company, the statement shall also be sent by first-
class mail to the mailing address of the registered agent for the corporation or limited liability
company. Notwithstanding anything to the contrary in this Chapter, the association is not
required to mail a statement to an address known to be a vacant lot on which no dwelling has
been constructed or to a lot for which there is no United States postal address.
(c) A claim of lien shall set forth the name and address of the association, the name of the record
owner of the lot at the time the claim of lien is filed, a description of the lot, and the amount of
the lien claimed. A claim of lien may also appoint a trustee to conduct a foreclosure, as
provided in subsection (f) of this section. The first page of the claim of lien shall contain the
following statement in print that is in boldface, capital letters, and no smaller than the largest
print used elsewhere in the document:
"THIS DOCUMENT CONSTITUTES A LIEN AGAINST YOUR PROPERTY, AND IF THE LIEN IS NOT
PAID, THE HOMEOWNERS ASSOCIATION MAY PROCEED WITH FORECLOSURE AGAINST YOUR
PROPERTY IN LIKE MANNER AS A MORTGAGE UNDER NORTH CAROLINA LAW."
The person signing the claim of lien on behalf of the association shall attach to and file with the
claim of lien a certificate of service attesting to the attempt of service on the record owner, which
service shall be attempted in accordance with G.S. 1A-1, Rule 4(j), for service of a copy of a
summons and a complaint. If the actual service is not achieved, the person signing the claim of lien
on behalf of the association shall be deemed to have met the requirements of this subsection if
service has been attempted pursuant to both of the following: (i) G.S. 1A-1, Rule 4(j)(1)c, d, or e
and (ii) by mailing a copy of the lien by regular, first-class mail, postage prepaid to the physical
address of the lot and the lot owner's address of record with the association, and, if different, to
the address for the lot owner shown on the county tax records and the county real property records
for the lot. In the event that the owner of record is not a natural person, and actual service is not
achieved, the person signing the claim of lien on behalf of the association shall be deemed to have
met the requirements of this subsection if service has been attempted once pursuant to
N.C. Gen. Stat. § 47F-3-116
the applicable provisions of G.S. 1A-1, Rule 4(j)(3) through G.S. 1A-1, Rule 4(j)(9).
Notwithstanding anything to the contrary in this Chapter, the association is not required to mail a
claim of lien to an address which is known to be a vacant lot on which no dwelling has been
constructed or to a lot for which there is no United States postal address. A lien for unpaid
assessments is extinguished unless proceedings to enforce the lien are instituted within three years
after the filing of the claim of lien in the office of the clerk of superior court.
(d) A claim of lien filed under this section is prior to all liens and encumbrances on a lot except (i)
liens and encumbrances, specifically including, but not limited to, a mortgage or deed of trust
on the lot, recorded before the filing of the claim of lien in the office of the clerk of superior
court and (ii) liens for real estate taxes and other governmental assessments and charges
against the lot. This subsection does not affect the priority of mechanics' or materialmen's
liens.
(e) The association shall be entitled to recover the reasonable attorneys' fees and costs it incurs in
connection with the collection of any sums due. A lot owner may not be required to pay
attorneys' fees and court costs until the lot owner is notified in writing of the association's
intent to seek payment of attorneys' fees, costs, and expenses. The notice must be sent by
first-class mail to the physical address of the lot and the lot owner's address of record with the
association and, if different, to the address for the lot owner shown on the county tax records
for the lot. The association must make reasonable and diligent efforts to ensure that its records
contain the lot owner's current mailing address. Notwithstanding anything to the contrary in
this Chapter, there shall be no requirement that notice under this subsection be mailed to an
address which is known to be a vacant lot on which no dwelling has been constructed or a lot
for which there is no United States postal address. The notice shall set out the outstanding
balance due as of the date of the notice and state that the lot owner has 15 days from the
mailing of the notice by first-class mail to pay the outstanding balance without the attorneys'
fees and court costs. If the lot owner pays the outstanding balance within this period, then the
lot owner shall have no obligation to pay attorneys' fees, costs, or expenses. The notice shall
also inform the lot owner of the opportunity to contact a representative of the association to
discuss a payment schedule for the outstanding balance, as provided in subsection (i) of this
section, and shall provide the name and telephone number of the representative.
(f) Except as provided in subsection (h) of this section, the association, acting through the
executive board, may foreclose a claim of lien in like manner as a mortgage or deed of trust on
real estate under power of sale, as provided in Article 2A of Chapter 45 of the General Statutes,
if the assessment remains unpaid for 90 days or more. The association shall not foreclose the
claim of lien unless the executive board votes to commence the proceeding against the specific
lot.
The following provisions and procedures shall be applicable to and complied with in every
nonjudicial power of sale foreclosure of a claim of lien, and these provisions and procedures shall
control to the extent they are inconsistent or in conflict with the provisions of Article 2A of Chapter
45 of the General Statutes:
(1) The association shall be deemed to have a power of sale for purposes of enforcement of its
claim of lien.
(2) The terms "mortgagee" and "holder" as used in Article 2A of Chapter 45 of the General
Statutes shall mean the association, except as provided otherwise in this Chapter.
(3) The term "security instrument" as used in Article 2A of Chapter 45 of the General Statutes
shall mean the claim of lien.
(4) The term "trustee" as used in Article 2A of Chapter 45 of the General Statutes shall mean
the person or entity appointed by the association under subdivision (6) of this subsection.
N.C. Gen. Stat. § 47F-3-116
(5) After the association has filed a claim of lien and prior to the commencement of a
nonjudicial foreclosure, the association shall give to the lot owner notice of the association's
intention to commence a nonjudicial foreclosure to enforce its claim of lien. The notice shall
contain the information required in G.S. 45-21.16(c)(5a).
(6) The association shall appoint a trustee to conduct the nonjudicial foreclosure proceeding
and sale. The appointment of the trustee shall be included in the claim of lien or in a
separate instrument filed with the clerk of court in the county in which the planned
community is located as an exhibit to the notice of hearing. The association, at its option,
may from time to time remove a trustee previously appointed and appoint a successor
trustee by filing a Substitution of Trustee with the clerk of court in the foreclosure
proceeding. Counsel for the association may be appointed by the association to serve as
the trustee and may serve in that capacity as long as the lot owner does not contest the
obligation to pay or the amount of any sums due the association, or the validity,
enforcement, or foreclosure of the claim of lien, as provided in subdivision (12) of this
subsection. Any trustee appointed pursuant to this subsection shall have the same fiduciary
duties and obligations as a trustee in the foreclosure of a deed of trust.
(7) If a valid debt, default, and notice to those entitled to receive notice under G.S. 45-
21.16(b) are found to exist, then the clerk of court shall authorize the sale of the property
described in the claim of lien by the trustee.
(8) If, prior to the expiration of the upset bid period provided in G.S. 45-21.27, the lot owner
satisfies the debt secured by the claim of lien and pays all expenses and costs incurred in
filing and enforcing the association assessment lien, including, but not limited to,
advertising costs, attorneys' fees, and the trustee's commission, then the trustee shall
dismiss the foreclosure action and the association shall cancel the claim of lien of record in
accordance with the provisions of G.S. 45-36.3. The lot owner shall have all rights granted
under Article 4 of Chapter 45 of the General Statutes to ensure the association's
satisfaction of the claim of lien.
(9) Any person, other than the trustee, may bid at the foreclosure sale. Unless prohibited in
the declaration or bylaws, the association may bid on the lot at a foreclosure sale directly
or through an agent. If the association or its agent is the high bidder at the sale, the
trustee shall allow the association to pay the costs and expenses of the sale and apply a
credit against the sums due by the lot owner to the association in lieu of paying the bid
price in full.
(10) Upon the expiration of the upset bid period provided in G.S. 45-21.27, the trustee shall
have full power and authority to execute a deed for the lot to the high bidder.
(11) The trustee shall be entitled to a commission for services rendered which shall include
fees, costs, and expenses reasonably incurred by the trustee in connection with the
foreclosure, whether or not a sale is held. Except as provided in subdivision (12) of this
subsection, the trustee's commission shall be paid without regard to any limitations on
compensation otherwise provided by law, including, without limitation, the provisions of
G.S. 45-21.15.
(12) If the lot owner does not contest the obligation to pay the amount of any sums due the
association or the validity, enforcement, or foreclosure of the claim of lien at any time after
the expiration of the 15-day period following notice as required in subsection (b) of this
section, then attorneys' fees and the trustee's commission collectively charged to the lot
owner shall not exceed one thousand two hundred dollars ($ 1,200), not including costs or
expenses incurred. The obligation to pay and the amount of any sums due the association
and the validity, enforcement, or foreclosure of the claim of lien remain
N.C. Gen. Stat. § 47F-3-116
uncontested as long as the lot owner does not dispute, contest, or raise any objection,
defense, offset, or counterclaim as to the amount or validity of any portion of the sums
claimed due by the association or the validity, enforcement, or foreclosure of the claim of
lien. Any judgment, decree, or order in any action brought under this section shall include
costs and reasonable attorneys' fees for the prevailing party.
(13) Lot owners shall be deemed to have the rights and remedies available to mortgagors
under G.S. 45-21.34.
(g) The provisions of subsection (f) of this section do not prohibit or prevent an association from
pursuing judicial foreclosure of a claim of lien, from taking other actions to recover the sums
due the association, or from accepting a deed in lieu of foreclosure. Any judgment, decree, or
order in any judicial foreclosure or civil action relating to the collection of assessments shall
include an award of costs and reasonable attorneys' fees for the prevailing party, which shall
not be subject to the limitation provided in subdivision (f)(12) of this section.
(h) A claim of lien securing a debt consisting solely of fines imposed by the association, interest on
unpaid fines, or attorneys' fees incurred by the association solely associated with fines imposed
by the association may only be enforced by judicial foreclosure, as provided in Article 29A of
Chapter 1 of the General Statutes. In addition, an association shall not levy, charge, or attempt
to collect a service, collection, consulting, or administration fee from any lot owner unless the
fee is expressly allowed in the declaration, and any claim of lien securing a debt consisting
solely of these fees may only be enforced by judicial foreclosure, as provided in Article 29A of
Chapter 1 of the General Statutes.
(i) The association, acting through its executive board and in the board's sole discretion, may
agree to allow payment of an outstanding balance in installments. Neither the association nor
the lot owner is obligated to offer or accept any proposed installment schedule. Reasonable
administrative fees and costs for accepting and processing installments may be added to the
outstanding balance and included in an installment payment schedule. Reasonable attorneys'
fees may be added to the outstanding balance and included in an installment schedule after the
lot owner has been given notice, as required in subsection (e) of this section. Attorneys' fees
incurred in connection with any request that the association agrees to accept payment of all or
any part of sums due in installments shall not be included or considered in the calculation of
fees chargeable under subdivision (f)(12) of this section.
(j) Where the holder of a first mortgage or first deed of trust of record or other purchaser of a lot
obtains title to the lot as a result of foreclosure of a first mortgage or first deed of trust, the
purchaser and its heirs, successors, and assigns shall not be liable for the assessments against
the lot which became due prior to the acquisition of title to the lot by the purchaser. The unpaid
assessments shall be deemed to be common expenses collectible from all the lot owners,
including the purchaser, its heirs, successors, and assigns. For purposes of this subsection, the
term "acquisition of title" means and refers to the recording of a deed conveying title or the
time at which the rights of the parties are fixed following the foreclosure of a mortgage or deed
of trust, whichever occurs first.
History
1998-199, s. 1; 2005-422, s. 6; 2009-515, s. 1; 2011-362, s. 1; 2013-202, s. 3.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47F-3-116.1
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 3. MANAGEMENT OF PLANNED COMMUNITY
§ 47F-3-116.1. Validation of certain nonjudicial foreclosure proceedings and sales
All nonjudicial foreclosure proceedings commenced by an association before October 1, 2013, and all
sales and transfers of real property as part of those proceedings pursuant to the provisions of this
Chapter or provisions contained in the declaration of the planned community, are declared to be valid,
unless an action to set aside the foreclosure is commenced on or before October 1, 2013, or within
one year after the date of the sale, whichever occurs last.
History
2013-202, s. 4.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47F-3-117
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 3. MANAGEMENT OF PLANNED COMMUNITY
N.C. Gen. Stat. § 47F-3-117
Reserved for future codification purposes.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47F-3-118
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 3. MANAGEMENT OF PLANNED COMMUNITY
§ 47F-3-118. Association records
(a) The association shall keep financial records sufficiently detailed to enable the association to
comply with this Chapter. All financial and other records, including records of meetings of the
association and executive board, shall be made reasonably available for examination by any lot
owner and the lot owner's authorized agents as required in the bylaws and Chapter 55A of the
General Statutes. If the bylaws do not specify particular records to be maintained, the
association shall keep accurate records of all cash receipts and expenditures and all assets and
liabilities. In addition to any specific information that is required by the bylaws to be assembled
and reported to the lot owners at specified times, the association shall make an annual income
and expense statement and balance sheet available to all lot owners at no charge and within 75
days after the close of the fiscal year to which the information relates. Notwithstanding the
bylaws, a more extensive compilation, review, or audit of the association's books and records
for the current or immediately preceding fiscal year may be required by a vote of the majority
of the executive board or by the affirmative vote of a majority of the lot owners present and
voting in person or by proxy at any annual meeting or any special meeting duly called for that
purpose.
(b) The association, upon written request, shall furnish to a lot owner or the lot owner's
authorized agents a statement setting forth the amount of unpaid assessments and other
charges against a lot. The statement shall be furnished within 10 business days after receipt of
the request and is binding on the association, the executive board, and every lot owner.
(c) In addition to the limitations of Article 8 of Chapter 55A of the General Statutes, no financial
payments, including payments made in the form of goods and services, may be made to any
officer or member of the association's executive board or to a business, business associate, or
relative of an officer or member of the executive board, except as expressly provided for in the
bylaws or in payments for services or expenses paid on behalf of the association which are
approved in advance by the executive board.
History
1998-199, s. 1; 2005-422, s. 7.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47F-3-119
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 3. MANAGEMENT OF PLANNED COMMUNITY
§ 47F-3-119. Association as trustee
With respect to a third person dealing with the association in the association's capacity as a trustee
under G.S. 47F-2-118 following termination or G.S. 47F-3-113 for insurance proceeds, the existence
of trust powers and their proper exercise by the association may be assumed without inquiry. A third
person is not bound to inquire whether the association has power to act as trustee or is properly
exercising trust powers, and a third person, without actual knowledge that the association is
exceeding or improperly exercising its powers, is fully protected in dealing with the association as if it
possessed and properly exercised the powers it purports to exercise. A third person is not bound to
assure the proper application of trust assets paid or delivered to the association in its capacity as
trustee.
History
1998-199, s. 1.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47F-3-120
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 3. MANAGEMENT OF PLANNED COMMUNITY
§ 47F-3-120. Declaration limits on attorneys' fees
Except as provided in G.S. 47F-3-116, in an action to enforce provisions of the articles of
incorporation, the declaration, bylaws, or duly adopted rules or regulations, the court may award
reasonable attorneys' fees to the prevailing party if recovery of attorneys' fees is allowed in the
declaration.
History
1998-199, s. 1.
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47F-3-121
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 3. MANAGEMENT OF PLANNED COMMUNITY
§ 47F-3-121. American and State flags and political sign displays
Notwithstanding any provision in any declaration of covenants, no restriction on the use of land
shall be construed to:
(1) Regulate or prohibit the display of the flag of the United States or North Carolina, of a size
no greater than four feet by six feet, which is displayed in accordance with or in a manner
consistent with the patriotic customs set forth in 4 U.S.C. §§ 5-10, as amended, governing
the display and use of the flag of the United States unless:
a. For restrictions registered prior to October 1, 2005, the restriction specifically uses the
following terms:
1. Flag of the United States of America;
2. American flag;
3. United States flag; or
4. North Carolina flag.
b. For restrictions registered on or after October 1, 2005, the restriction shall be written on
the first page of the instrument or conveyance in print that is in boldface type, capital
letters, and no smaller than the largest print used elsewhere in the instrument or
conveyance. The restriction shall be construed to regulate or prohibit the display of the
United States or North Carolina flag only if the restriction specifically states: "THIS
DOCUMENT REGULATES OR PROHIBITS THE DISPLAY OF THE FLAG OF THE UNITED
STATES OF AMERICA OR STATE OF NORTH CAROLINA".
This subdivision shall apply to owners of property who display the flag of the United States
or North Carolina on property owned exclusively by them and does not apply to common
areas, easements, rights-of-way, or other areas owned by others.
(2) Regulate or prohibit the indoor or outdoor display of a political sign by an association
member on property owned exclusively by the member, unless:
a. For restrictions registered prior to October 1, 2005, the restriction specifically uses the
term "political signs".
b. For restrictions registered on or after October 1, 2005, the restriction shall be written on
the first page of the instrument or conveyance in print that is in boldface type, capital
letters, and no smaller than the largest print used elsewhere in the instrument or
conveyance. The restriction shall be construed to regulate or prohibit the display of
political signs only if the restriction specifically states: "THIS DOCUMENT REGULATES
OR PROHIBITS THE DISPLAY OF POLITICAL SIGNS".
Even when display of a political sign is permitted under this subdivision, an association (i) may
prohibit the display of political signs earlier than 45 days before the day of the election and later
than seven days after an election day, and (ii) may regulate the size and number of political signs
that may be placed on a member's property if the association's regulation is no more restrictive
N.C. Gen. Stat. § 47F-3-121
than any applicable city, town, or county ordinance that regulates the size and number of political
signs on residential property. If the local government in which the property is located does not
regulate the size and number of political signs on residential property, the association shall permit
at least one political sign with the maximum dimensions of 24 inches by 24 inches on a member's
property. For the purposes of this subdivision, "political sign" means a sign that attempts to
influence the outcome of an election, including supporting or opposing an issue on the election
ballot. This subdivision shall apply to owners of property who display political signs on property
owned exclusively by them and does not apply to common areas, easements, rights-of-way, or
other areas owned by others.
History
2005-422, s. 8; 2006-226, s. 15(b).
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved
N.C. Gen. Stat. § 47F-3-122
Statutes current through the 2014 Regular Session
General Statutes of North Carolina > CHAPTER 47F. NORTH CAROLINA
PLANNED COMMUNITY ACT > ARTICLE 3. MANAGEMENT OF PLANNED COMMUNITY
§ 47F-3-122. Irrigation of landscaping
Notwithstanding any provision in any declaration of covenants, no requirement to irrigate
landscaping shall be construed to:
(1) Require the irrigation of landscaping, during any period in which the U.S. Drought Monitor,
as defined in G.S. 143-350, or the Secretary of Environment and Natural Resources has
designated an area in which the association is located as an area of severe, extreme, or
exceptional drought and the Governor, a State agency, or unit of local government has
imposed water conservation measures applicable to the area unless:
a. For declarations of covenants registered prior to October 1, 2008, the covenant
specifically requires the irrigation of landscaping notwithstanding water conservation
measures imposed by the Governor, a State agency, or unit of local government. The
association may not fine or otherwise penalize an owner of land for violation of an
irrigation requirement during a period of a drought as designated under this
subdivision, unless the covenant specifically authorizes fines or other penalties.
b. For covenants registered on or after October 1, 2008, the covenant must specifically
state that any requirement to irrigate landscaping is suspended to the extent the
requirement would otherwise be prohibited during any period in which the Governor, a
State agency, or unit of local government has imposed water conservation measures.
The association may not fine or otherwise penalize an owner of land for violation of an
irrigation requirement during a drought designated under this subdivision, unless the
covenant authorizes the fines or other penalties. This authorization must be written on
the first page of the covenant in print that is in boldface type, capital letters, and no
smaller than the largest print used elsewhere in the declarations of covenants.
(2) For purposes of this section, the term "landscaping" includes lawns, trees, shrubbery, and
other ornamental or decorative plants.
History
2008-143, s. 19(b).
General Statutes of North Carolina
Copyright 2015 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights
reserved.