A BILL TO BE ENTITLED AN ACT TO ALLOW THE REAL ESTATE COMMISSION TO REGULATE COMMUNITY ASSOCIATION PROPERTY MANAGERS.
Enacts new Article 2A (Community Association Property Management) in GS Chapter 93A. Gives the North Carolina Real Estate Commission (Commission) the power to administer the Article and adopt rules. Makes it unlawful to act as a community association property manager, engage in the business of community association property management, or hold self out to be a community association property manager, or use such title, on or after October 1, 2103, without being licensed by the Commission. Prohibits issuing a license to a partnership, association, corporation, limited liability company, or other business entity. Prohibits a licensee from exercising control over the reserves or investment accounts of a community association or an operating account of a community association unless specified conditions are met. Also prohibits a licensee from giving legal or financial advice. Requires community association property managers to be covered by a bond of at least $20,000. Sets out further bonding requirements. Requires contracts to provide community association property management services be in writing and provide that the contract (1) expires in one year but allows for continuation on a month-to-month basis, (2) contains an escape clause, and (3) contains a notice of cancellation with proper notice before the contract expires and before contract renewal. Requires community associations to register with the Commission annually and sets out information that must be provided. Requires a $100 registration fee.
Makes a conforming change to GS 93A-2 by defining commuity association property management. Makes a conforming change to GS 93A-16.
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