Bill Summary for H 493 (2011-2012)

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Summary date: 

Mar 29 2011
S.L. 2012-17

Bill Information:

View NCGA Bill Details2011-2012 Session
House Bill 493 (Public) Filed Monday, March 28, 2011
AMENDING THE LAWS RELATED TO LANDLORD TENANT RELATIONSHIPS.
Intro. by Howard, Blust, Randleman.

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Bill summary

Enacts new subdivision (4) to GS 42-26(a), which allows removal of holdover tenants or lessees in certain cases, to also allow removal when the sole tenant or lessee under the terms of the written lease dies and the tenant’s or lessee’s personal property remains in the demised premises. Allows a landlord to bring an action for summary ejectment in that situation under three detailed conditions.
Amends GS 42-25.7 to allow a landlord to permit the next of kin of a deceased residential tenant or lessee to enter the leased unit and remove personal property if: (1) the deceased was the sole tenant or lessee in the unit and (2) the next of kin seeking entry can establish by reasonably reliable information that he or she is a parent, child, or sibling of the deceased tenant or lessee. Provides immunity from civil or criminal liability to a landlord who, in good faith, allows the next of kin to enter and remove personal property. Specifies that no duty or obligation is imposed on a landlord to permit the next of kin to enter the unit or to remove personal property from the unit. Also clarifies that the statute does not make the landlord liable to the next of kin, or prevent the landlord from bringing a summary ejectment action.
Amends GS 42-29, clarifying that the officer or authorized process server receiving the summons must mail a copy of the summons and complaint to the defendant as specified. Makes a conforming change to add authorized process server, defined as a person who is at least 21 years old and is not employed by the plaintiff, related by blood to the plaintiff, or an attorney or employee of a law firm, throughout the statute. Provides that, when service cannot be made by the authorized process server, the server must attach copies to a conspicuous part of the premises claimed by the lessor, and file an affidavit of service with the applicable clerk of superior court, as conclusive evidence that the summons was served. Makes a clarifying change.
Amends GS 42-34(b), allowing a stay of execution of judgment for ejectment if the defendant appellant pays any rent in arrears and signs an undertaking that he or she will pay the amount of the tenant’s share of the contract rent, reasonable damages that the landlord may suffer, the costs of the pending action, and comply with GS 42-34(c). Makes a technical change.
Amends GS 42-34.1, providing that, if the judgment in district court is against the defendant appellant, it is sufficient to stay execution of the judgment during the 30-day time period for taking an appeal if the defendant appellant posts a bond as specified. Directs the clerk of superior court to, upon application by the plaintiff appellee, immediately issue a writ of possession allowing the sheriff to dispossess the defendant appellant, if the defendant appellant fails to make rental payments as stated in the undertaking within five days of the day that rent is due under the residential rental agreement. Makes a conforming change.
Amends GS 42-36.2, which provides for notice to tenant of execution of writ for possession of property and storage of evicted tenant’s personal property, to allow the sheriff no more than five days (currently, seven days) to execute the writ for possession of real property from the date the sheriff receives the writ. Makes a conforming change throughout the statute, changing all 10-day time periods to 5-day time periods.
Enacts new subsection (e) to GS 42-44, stating that a landlord’s acceptance of any rent or housing subsidy payment, where the payment is less than the full amount owed by the tenant, will never be a defense to summary ejectment action. Enacts new subsection (f) to GS 42-44, stating that a landlord’s acceptance of any rent or housing subsidy payment will not constitute an unfair and deceptive trade practice under GS Chapter 75.
Amends GS 42-50, clarifying that tenant security deposits must be deposited in a trust account that is a demand deposit account in a federally insured bank, which makes account records available for inspection by the North Carolina Real Estate Commission (currently, the monies must be deposited with a licensed and insured bank or savings institution in NC), or the landlord may provide a bond from an insurance company licensed to do business in NC. Makes a clarifying change.
Amends GS 42-51, which lists permitted uses for security deposits, to also allow coverage of authorized fees permitted by GS 42-46. Clarifies that the deposit can pay for damage to the premises, including damage to or destruction of smoke or carbon monoxide detectors, and cover the costs of re-renting the premises after a breach, including any fees or commissions paid to a licensed real estate broker. Makes clarifying and conforming changes.
Enacts new subsection (d) to GS 42A-17, permitting a vacation rental agreement to include a cleaning fee, as described. Makes a conforming change to GS 42A-11(b), which lists certain provisions included in vacation rental agreements, to add any cleaning fee permitted under GS 42A-17(d).
Applies to all actions for summary ejectment occurring on and after October 1, 2011, and to all residential rental agreements entered into on or after that date.