Bill Summary for H 331 (2013-2014)

Summary date: 

Apr 30 2013

Bill Information:

View NCGA Bill Details2013-2014 Session
House Bill 331 (Public) Filed Monday, March 18, 2013
A BILL TO BE ENTITLED AN ACT TO STABILIZE TITLES AND TO PROVIDE A UNIFORM PROCEDURE TO ENFORCE CLAIMS OF LIEN SECURING SUMS DUE CONDOMINIUM AND PLANNED COMMUNITY ASSOCIATIONS.
Intro. by Bryan, Stam.

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Bill summary

House committee substitute makes the following changes to the 1st edition.

Amends GS 47C-3-116.1 (Lien for sums due the association; enforcement), making  technical and reorganizational changes. Specifies the procedures for service of process of the claim of lien on the record owner, providing it should be made and attempted in accordance with GS 1A-1, Rule 4(j), for service of a copy of a summons and a complaint. Also sets out the processes and procedures that should be followed when actual service is not achieved or in cases where the owner of record is not a natural person.

Amends GS 47C-3-116.1(f) providing that an association, through the executive board, may foreclose a claim of lien in like manner as a mortgage or deed of trust on real estate under the power of sale if the assessment remains unpaid for 90 days or more. Requires the association to vote to commence such a proceeding against the specific unit before the claim of lien can be foreclosed on.  Establishes that any trustee appointed pursuant to GS 47C-3-116.1(f)(6), in the course of every nonjudicial power of sale foreclosure of a claim of lien, will have the same fiduciary duties and obligations as a trustee in the foreclosure of a deed of trust. Deletes the following language: "and if no person or entity other than counsel for the association serves as trustee in the foreclosure...," which provided a limit for the awarding of attorneys' fees in the amount of $1,200, in regards to the foreclosure of claims of lien. Also deletes language that states that the obligation to pay and the amount of any sums due the association will be considered uncontested as long as the unit owner does not refuse to pay any portion of the sums claimed due by the association. Provides that any judgment, decree, or order in any action brought under GS 47C-3-116.1 will include costs and reasonable attorneys' fees for the prevailing party. Establishes that unit owners will be deemed to have the rights and remedies available to mortgagors under GS 45-21.34.

Amends GS 47C-3-116.1(g), providing that any judgment, decree, or order in any judicial foreclosure or civil action, relating to the collection of assessments, will include an award of costs and reasonable attorneys' fees for the prevailing party (previously, did not refer to the relation to the collection of assessments).

Amends GS 47C-3-116.1(i), providing that costs and expenses incurred in connection with any request that the association agrees to accept payment of all or part of sums due in installments can be included or considered in the calculation of fees chargeable under GS 47C-3-116.1(f)(12) (previously, excluded costs and expenses from being included in the calculation of chargeable fees).

Appears to amend GS 47F-3-116.1 (Lien for sums due the association; enforcement), providing that unless the declaration provides otherwise, fees, charges, late charges, and other charges imposed pursuant to GS 47F-3-102, 47F-3-107, 47F-3-107.1, and 47F-3-115, as well as any other sums due and payable to the association under the declaration, are secured by a claim of lien once filed and are enforceable in the same manner as unpaid assessments under this section.

Amends GS 47F-3-116.1(c), specifying the procedures for service of process of the claim of lien on the record owner under this section, providing it should be made and attempted in accordance with GS 1A-1, Rule 4(j), for service of a copy of a summons and a complaint. Also sets out the processes and procedures that should be followed when actual service is not achieved or in cases where the owner of record is not a natural person.

Amends GS 47F-3-116.1(f), providing that an association, through the executive board, may foreclose a claim of lien in like manner as a mortgage or deed of trust on real estate under the power of sale if the assessment remains unpaid for 90 days or more. Requires the association to vote to commence such a proceeding against the specific unit before the claim of lien can be foreclosed on. Makes technical and reorganizational changes. Establishes that any trustee appointed pursuant to GS 47F-3-116.1(f)(6), in the course of every nonjudicial power of sale foreclosure of a claim of lien, will have the same fiduciary duties and obligations as a trustee in the foreclosure of a deed of trust. Deletes the following language: "and if no person or entity other than counsel for the association serves as trustee in the foreclosure...," which provided for a limit for the awarding of attorneys' fees in the amount of $1,200, in regards to the foreclosure of claims of lien. Also deletes language that states that the obligation to pay and the amount of any sums due the association will be considered uncontested as long as the unit owner does not refuse to pay any portion of the sums claimed due by the association. Provides that any judgment, decree, or order in any action brought under GS 47F-3-116.1(f) will include costs and reasonable attorneys' fees for the prevailing party. Establishes that lot owners will be deemed to have the rights and remedies available to mortgagors under GS 45-21.34.

Amends GS 4F-3-116.1(g), providing that any judgment, decree, or order in any judicial foreclosure or civil action, relating to the collection of assessments, will include an award of costs and reasonable attorneys' fees for the prevailing party (previously, did not refer to the relation to the collection of assessments).

Amends GS 47F-3-116.1(i), providing that costs and expenses incurred in connection with any request that the association agrees to accept payment of all or part of sums due in installments can be included or considered in the calculation of fees chargeable under GS 47C-3-116.1(f)(12) (previously, excluded costs and expenses from being included in the calculation of chargeable fees).

 

 

 

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