Bill Summary for H 920 (2019-2020)

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Summary date: 

Apr 22 2019

Bill Information:

View NCGA Bill Details2019-2020 Session
House Bill 920 (Public) Filed Tuesday, April 16, 2019
Intro. by D. Hall, K. Hall, Hardister.

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Bill summary

Amends GS 47C-2-109 to no longer require each condominium plat or plan to contain a certification by a licensed architect or a registered engineer that contains the required information; now that information is to be shown in each plat or plan. Amends the items that each plat or plan must show to instead include a certified statement of a licensed architect or registered engineer certifying that the plat or plans depict (1) locations and dimensions of the vertical boundaries of each unit, to the extent those boundaries lie within or coincide with the boundaries of the building in which the unit is located; (2) the location of any horizontal unit boundaries, with reference to established datum; and (3) an identifying number for each unit. Makes additional clarifying and technical changes.

Amends GS 47C-2-105, which sets out the items that must be included in the declaration for a condominium. One item is a description of any development rights and other special declarant rights reserved by the declarant, with a description of the real estate to which each of those rights applies, and a time limit within or date by which (was, a time limit by which) each of those rights must be exercised. Adds that if no time limit or date is specified, the time limit for the exercise of any development right or other special declarant right is seven years from the date the declaration was recorded. Provides that if the declaration so provides, the unit owners of units to which at last 67% of the votes in the association are allocated may consent to an extension, not exceeding 10 years; requires the extension to occur within one year before the date upon which the time limit would otherwise have expired. Makes additional technical changes. 

Amends GS 47C-2-117, concerning amending a declaration, by adding that the provisions of the Article and recorded condominium instruments are to be liberally construed in favor of the valid establishment of a condominium with respect to the submitted property. Provides that if any amendment to the declaration is necessary in the executive board's judgement, then the board may seek approval to amend the declaration for any of four specified purposes, including to make a reasonable accommodation or permit a reasonable modification in favor of a person with disabilities. Specifies that any such amendment recorded in the office of the register of deeds in the county where the condominium is located operate as a correction of the declaration and is effective as of the date the declaration being corrected was originally recorded with the same effect as if the declaration were correct when it was first recorded. 

Enacts new GS 47C-2-117.1 allowing a unit owners' association to petition the clerk of superior court to resolve ambiguities, errors, or inconsistencies in the condominium instruments that are the source of legal and other disputes pertaining to the legal rights and responsibilities of the unit owners' association or individual unit owner. Also allows the instruments to be reformed to correct scrivener's errors. Sets out the superior court's jurisdiction over these matters.

Sets out five requirements that must be met when filing a petition with the court setting forth any inconsistency or error made in the condominium instruments, including sending a copy of the petition at least 30 days before it is filed to all unit owners and all beneficiaries of a deed of trust or mortgagees of record for a unit in the condominium. 

Sets out the procedure under which a person served with the petition may object to or dispute the petition. Gives any unit owner or beneficiary of a deed of trust or mortgagee of a condominium unit in the condominium objecting or disputing the petition standing to participate in the reformation proceedings.