House committee substitute makes the following changes to 2nd edition.
Amends GS 47G-1 to clarify the definitions for the following terms as they apply in GS Chapter 47G: (1) covered lease agreement (was, covered lease agreement or lease agreement), (2) option contract or contract, and (3) option fee. Makes technical changes to GS 47G-7 and GS 47H-8 regarding remedies for a violation of GS Chapter 47G or GS Chapter 47H. New sections are effective October 1, 2011, and apply to transactions entered on or after that date. Amends the title.
Bill Summaries: S488 LANDLORD NOTICE NC BAR/HOMEOWNER-BUYER PROT. (NEW).
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Tracking:
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Bill S 488 (2011-2012)Summary date: Jun 16 2011 - View Summary
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Bill S 488 (2011-2012)Summary date: May 2 2011 - View Summary
Senate committee substitute makes the following changes to 1st edition.
Amends proposed GS 42-14.4, requiring a landlord with actual knowledge that a tenant is an attorney to notify the NC State Bar (State Bar) at least 15 days (was, 30 days) before the destruction or discard (was, destruction or sale) of any potentially confidential materials remaining in the premises after the landlord obtains possession. Makes conforming changes as necessary, changing 30 days to 15 days. Defines landlord for the purposes of the statute to mean any owner and any rental management company, rental agency, or any other person having the actual or apparent authority of an agent to perform the duties imposed by Article 1 of GS Chapter 42. Prohibits the landlord from throwing away, selling, or otherwise disposing of potentially confidential materials remaining on the premises during the 15-day period after notice; however, permits the landlord to move the material for storage purposes. Provides that if neither the State Bar nor its designee takes possession of the materials within the 15-day period, the landlord may destroy or discard the materials per the terms of the lease agreement with the defaulting tenant.
Provides that a landlord who makes a good faith effort to comply with the requirements of proposed GS 42-14.4 is not liable for any losses arising directly or indirectly out of the disposal of any potentially confidential materials. Specifies that failing to comply with statute is not an unfair trade practice under GS 75-1.1.
Amends new subsection (h) to GS 44A-2 (concerning liens on personal property), requiring any landlord of nonresidential property (was, residential or nonresidential property) containing potentially confidential materials to notify the State Bar as required under proposed GS 42-14.4, provided the landlord has actual knowledge that the former tenant is an attorney.
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Bill S 488 (2011-2012)Summary date: Mar 31 2011 - View Summary
Enacts new GS 42-14.4 requiring a landlord with knowledge that a tenant is or may have been an attorney to notify the NC State Bar (State Bar) at least 30 days before the destruction or sale of any potentially confidential materials remaining in the premises after the landlord obtains possession. Defines potentially confidential materials as client files, trust or operating account records, or other materials relating to client matters. Directs the landlord to provide the State Bar with the attorney’s name, the location of the relevant materials, and the landlord’s contact information. Requires the landlord to exercise reasonable care in removing, storing, and maintaining the materials. Permits the State Bar to take possession of the materials within the 30-day period without a court order. Details circumstances allowing the tenant to take possession, and exempts the landlord from liability for cooperation with the State Bar. Allows the landlord, after the 30-day period, to destroy or discard the materials in a manner to protect confidential information.
Enacts new subsection (h) to GS 44A-2 (concerning liens on personal property), requiring any landlord of residential or nonresidential property containing potentially confidential materials to notify the State Bar as required. Specifies that the materials are not the subject of a lien and must be destroyed or safely discarded if the State Bar does not take possession.