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, attorney’s fees, 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 47F-3-116.2, validating nonjudicial foreclosure proceedings commenced by associations before July 1, 2011, and all sales and transfers of property as part of those proceedings, unless action to set aside foreclosure is commenced by July 1, 2012, or within one year of sale, whichever is later. Validation provisions are not applicable to pending litigation. Effective July 1, 2011.
Status: Ref To Com On Judiciary I (Senate Action) (Apr 14 2011)
Bill S 588 (2011-2012)Summary date: Apr 13 2011 - More information