A BILL TO BE ENTITLED AN ACT AMENDING THE NORTH CAROLINA PLANNED COMMUNITY ACT REGARDING THE TRANSFER OF SPECIAL DECLARANT RIGHTS. Enacted July 7, 2014. Effective July 7, 2014.
Summary date: Jul 8 2014 - View summary
Summary date: Jun 26 2014 - View summary
The Senate committee substitute to the 2nd edition makes the following changes.
Makes a technical correction to GS 47F-1-102.
Amends GS 47F-1-103 to add that the term development rights means any right or combination of rights reserved by a declarant in the declaration to combine lots into common elements.
Amends GS 47F-3-104 to provide that 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 the specified subdivisions, is subject to the obligations and liabilities expressly imposed by GS Chapter 47F or the declaration. Further adds that those successors are subject to the obligations and liabilities imposed on the transferor other than obligations and liabilities arising out of contractual agreements between the transferor or any previous declarant and third parties other than the declaration.
Adds a provision making the last sentence of GS 47F-3-104(c) applicable to any mortgage, deed of trust, tax lien, or other conveyance providing for foreclosure recorded or after January 1, 1999.
Summary date: May 2 2013 - View summary
House committee substitute makes the following changes to the 1st edition.
Amends GS 47F-1-102(c), making a technical change.
Amends the definition for affiliate of declarant in GS 47-1-103, adding language stating that it refers to any person who succeeds to any special declarant rights, in addition to also referring to any person who controls, is controlled by, or is under common control with, a declarant. Makes organizational changes, setting out the requirements to establish if a person controls a declarant, for the purposes of this definition.
Amends subsection (c) of GS 47F-3-104 (Transfer of special declarant rights), providing that a person acquiring title to all of the specified property that is 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 related to that property held by that declarant and requested by the person acquiring title, unless otherwise provided by a specified instrument or security (previously, provided for succeeding to any rights reserved in the declaration and held by that declarant to maintain sales offices, management offices, signs advertising the planned community, and models).
Amends GS 47F-3-104(d), making organizational changes.
Summary date: Mar 18 2013 - View summary
Amends GS 47F-1-102 (Applicability), adds reference to GS 47F-3-104 (Transfer of Special Declarant Rights) to the section, explaining the applicability of that specific section of law.
Amends GS 47F-1-103 (Definitions), adding additional terms and definitions to be used in this act, including affiliate of declarant and development rights.
Amends GS 47F-3-104(a) (Transfer of special declarant rights), making technical and conforming changes.
Adds new subsections GS 47F-3-104(b-g).
GS 47F-3-104(b) provides for and explains the liability that a transferor declarant assumes upon transfer of any special declarant rights.
GS 47F-3-104(c) provides that, unless otherwise provided for, a person acquiring title of property being foreclosed or sold succeeds to all special declarant rights related to that property, held by the declarant, or those rights stated and reserved in the declaration, if requested in a recorded instrument.
GS 47F-3-104(d) provides for what occurs to special declarant rights after a foreclosure of a security interest, sale by trustee, tax sale, judicial sale, bankruptcy sale, or receivership proceedings of all interests in a planned community.
GS 47F-3-104(e) provides for the liabilities and obligations of a person who succeeds to special declarant rights.
GS 47F-3-104(f) provides that 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 arising under this Chapter or declaration.
GS 47F-3-104(g) clarifies that, for the purposes of this section, "assignment of declarant rights" includes any assignment by the declarant of special declarant rights to a person, including an assignment pursuant to this section.