Bill Summary for H 513 (2015-2016)

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Summary date: 

Apr 2 2015

Bill Information:

View NCGA Bill Details2015-2016 Session
House Bill 513 (Public) Filed Wednesday, April 1, 2015
Intro. by Bryan, Stevens.

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Bill summary

Amends GS 45-36(c), concerning the satisfaction of mortgages and deeds of trust, providing that unless the satisfaction expressly states that the underlying obligation secured by the security instrument has been extinguished, then the recording of a satisfaction does not by itself extinguish any liability of a person for payment or performance of the secured obligation.

Amends GS 47C-3-104, transfer of special declarant rights, making various changes, now providing that upon the transfer of any special declarant right, the liability of a transferor declarant is not relieved of any obligation or liability arising before the transfer and remains liable for warranty obligations imposed upon the transferor by GS Chapter 47C.

Further provides that unless otherwise provided for in one of the specified instruments, during a foreclosure of a security interest under the specified procedures, an individual acquiring title to all the real property being foreclosed or sold, upon the individual's request in an instrument properly recorded, succeeds to all special declarant rights related to the property held by that declarant. Adds new provisions which provide that the instruments or conveyances listed under this subsection are not required to contain any specific reference to an assignment of special declarant rights but will be presumed to include special declarant rights as part of the right and other interest encumbered by the mortgage, deed of trust, tax lien, or other conveyance. 

Further provides, that after the foreclosure of a security interest or other final sales or proceedings of all units and other real estate in a condiminium owned by a declarant, any special declarant rights and period of control will terminate except in two specified situations. 

Makes clarifying and conforming changes to the liabilities and obligations of individuals who succeed to special declarant rights. Adds responsibilties for the obligations and liabilities arising out of contractual agreements between the transferor or any previous declarant and third parties other than those contained in the declaration. 

Provides a limitating provision establishing 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 expressly arising under GS Chapter 47C or the declaration. 

Defines "assignment of declarant rights" for use in this section.