HOAS/UNIFORM LIEN PROCEDURE.

View NCGA Bill Details2013-2014 Session
House Bill 331 (Public) Filed Monday, March 18, 2013
A BILL TO BE ENTITLED AN ACT TO STABILIZE TITLES AND TO PROVIDE A UNIFORM PROCEDURE TO ENFORCE CLAIMS OF LIEN SECURING SUMS DUE CONDOMINIUM AND PLANNED COMMUNITY ASSOCIATIONS.
Intro. by Bryan, Stam.

Status: Ch. SL 2013-202 (House Action) (Jun 26 2013)

Bill History:

H 331/S.L. 2013-202

Bill Summaries:

  • Summary date: Jul 2 2013 - More information

    AN ACT TO STABILIZE TITLES AND TO PROVIDE A UNIFORM PROCEDURE TO ENFORCE CLAIMS OF LIEN SECURING SUMS DUE CONDOMINIUM AND PLANNED COMMUNITY ASSOCIATIONS. Enacted June 26, 2013. Effective October 1, 2013.


  • Summary date: Jun 10 2013 - More information

    Senate committee substitute makes the following changes to the 2nd edition.

    Makes organizational changes to the 2nd edition. Deletes prior changes that repealed GS 47C-3-116 and GS 47F-3-116,replaced GS 47C-3-116 (procedures for liens for assessments by homeowners associations) with new GS 47C-3-116.1, and replaced GS 47F-3-116 (comparable provisions for liens for planned community associations) with new GS 47F-3-116.1. Instead, reinstates GS 47C-3-116 andcodifiesthe provisions that were enacted as new GS 47C-3-116.1within GS 47C-3-116.Also reinstatesGS 47F-3-116 and codifiesthe provisions that were enacted as new GS 47F-3-116.1within GS 47F-3-116.

    Makes technical change, recodifyingnew GS 47C-3-116.2 as GS 47C-3-116.1and GS 47F-3-116.2 as GS 47F-3-116.1, validating nonjudicial foreclosure proceedings commenced by associations before October 1, 2003(was, July 1, 2013), and all sales and transfers of property as part of those proceedings, unless action to set aside foreclosure is commenced by October 1, 2013(was, July 1, 2013), or within one year of sale, whichever is later.

    Amends GS 47F-3-116 to provide that fees, charges, late charges, and other charges imposed under GS 47F-3-102, 47F-3-107, 47F-3-107.1, and 47F-3-115 are subject to the claim of lien under this section unless the declaration provides otherwise. Makes conforming technical changes renumbering sections as necessary.

    Makes this act effective October 1, 2013 (was, July 1, 2013).


  • Summary date: Apr 30 2013 - More information

    House committee substitute makes the following changes to the 1st edition.

    Amends GS 47C-3-116.1 (Lien for sums due the association; enforcement), making  technical and reorganizational changes. Specifies the procedures for service of process of the claim of lien on the record owner, providing it should be made and attempted in accordance with GS 1A-1, Rule 4(j), for service of a copy of a summons and a complaint. Also sets out the processes and procedures that should be followed when actual service is not achieved or in cases where the owner of record is not a natural person.

    Amends GS 47C-3-116.1(f) providing that an association, through the executive board, may foreclose a claim of lien in like manner as a mortgage or deed of trust on real estate under the power of sale if the assessment remains unpaid for 90 days or more. Requires the association to vote to commence such a proceeding against the specific unit before the claim of lien can be foreclosed on.  Establishes that any trustee appointed pursuant to GS 47C-3-116.1(f)(6), in the course of every nonjudicial power of sale foreclosure of a claim of lien, will have the same fiduciary duties and obligations as a trustee in the foreclosure of a deed of trust. Deletes the following language: "and if no person or entity other than counsel for the association serves as trustee in the foreclosure...," which provided a limit for the awarding of attorneys' fees in the amount of $1,200, in regards to the foreclosure of claims of lien. Also deletes language that states that the obligation to pay and the amount of any sums due the association will be considered uncontested as long as the unit owner does not refuse to pay any portion of the sums claimed due by the association. Provides that any judgment, decree, or order in any action brought under GS 47C-3-116.1 will include costs and reasonable attorneys' fees for the prevailing party. Establishes that unit owners will be deemed to have the rights and remedies available to mortgagors under GS 45-21.34.

    Amends GS 47C-3-116.1(g), providing that any judgment, decree, or order in any judicial foreclosure or civil action, relating to the collection of assessments, will include an award of costs and reasonable attorneys' fees for the prevailing party (previously, did not refer to the relation to the collection of assessments).

    Amends GS 47C-3-116.1(i), providing that costs and expenses incurred in connection with any request that the association agrees to accept payment of all or part of sums due in installments can be included or considered in the calculation of fees chargeable under GS 47C-3-116.1(f)(12) (previously, excluded costs and expenses from being included in the calculation of chargeable fees).

    Appears to amend GS 47F-3-116.1 (Lien for sums due the association; enforcement), providing that unless the declaration provides otherwise, fees, charges, late charges, and other charges imposed pursuant to GS 47F-3-102, 47F-3-107, 47F-3-107.1, and 47F-3-115, as well as any other sums due and payable to the association under the declaration, are secured by a claim of lien once filed and are enforceable in the same manner as unpaid assessments under this section.

    Amends GS 47F-3-116.1(c), specifying the procedures for service of process of the claim of lien on the record owner under this section, providing it should be made and attempted in accordance with GS 1A-1, Rule 4(j), for service of a copy of a summons and a complaint. Also sets out the processes and procedures that should be followed when actual service is not achieved or in cases where the owner of record is not a natural person.

    Amends GS 47F-3-116.1(f), providing that an association, through the executive board, may foreclose a claim of lien in like manner as a mortgage or deed of trust on real estate under the power of sale if the assessment remains unpaid for 90 days or more. Requires the association to vote to commence such a proceeding against the specific unit before the claim of lien can be foreclosed on. Makes technical and reorganizational changes. Establishes that any trustee appointed pursuant to GS 47F-3-116.1(f)(6), in the course of every nonjudicial power of sale foreclosure of a claim of lien, will have the same fiduciary duties and obligations as a trustee in the foreclosure of a deed of trust. Deletes the following language: "and if no person or entity other than counsel for the association serves as trustee in the foreclosure...," which provided for a limit for the awarding of attorneys' fees in the amount of $1,200, in regards to the foreclosure of claims of lien. Also deletes language that states that the obligation to pay and the amount of any sums due the association will be considered uncontested as long as the unit owner does not refuse to pay any portion of the sums claimed due by the association. Provides that any judgment, decree, or order in any action brought under GS 47F-3-116.1(f) will include costs and reasonable attorneys' fees for the prevailing party. Establishes that lot owners will be deemed to have the rights and remedies available to mortgagors under GS 45-21.34.

    Amends GS 4F-3-116.1(g), providing that any judgment, decree, or order in any judicial foreclosure or civil action, relating to the collection of assessments, will include an award of costs and reasonable attorneys' fees for the prevailing party (previously, did not refer to the relation to the collection of assessments).

    Amends GS 47F-3-116.1(i), providing that costs and expenses incurred in connection with any request that the association agrees to accept payment of all or part of sums due in installments can be included or considered in the calculation of fees chargeable under GS 47C-3-116.1(f)(12) (previously, excluded costs and expenses from being included in the calculation of chargeable fees).

     

     

     


  • Summary date: Mar 18 2013 - More information

    Replaces GS 47C-3-116 (procedures for liens for assessments by homeowners associations) with new GS 47C-3-116.1, and replaces GS 47F-3-116 (comparable provisions for liens for planned community associations) with new GS 47F-3-116.1. Most significant change in both statutes is inclusion of new subsections concerning foreclosure of lien in like manner as mortgage or deed of trust on real estate under power of sale. Specifies ways in which this procedure is to differ from that provided in Article 2A of GS Chapter 45. Provides for association to appoint trustee to conduct nonjudicial foreclosure proceeding and sale; notice to unit owner of intent to commence nonjudicial foreclosure; dismissal of the foreclosure procedure if debt plus costs, attorneys' fees, and trustee commission is satisfied before upset period expires; authorization for association to bid at foreclosure proceeding; and trustee compensation. Also modifies notice procedures for lien claim, allowing service by first class mail rather than service procedure under Rule 4(j) of the Rules of Civil Procedure. Enacts new GS 47C-3-116.2 and GS 47F-3-116.2, validating nonjudicial foreclosure proceedings commenced by associations before July 1, 2013, and all sales and transfers of property as part of those proceedings, unless action to set aside foreclosure is commenced by July 1, 2013, or within one year of sale, whichever is later. Validation provisions are not applicable to pending litigation. Effective July 1, 2013.


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