Bill Summary for S 588 (2011-2012)

Summary date: 

Apr 13 2011

Bill Information:

View NCGA Bill Details2011-2012 Session
Senate Bill 588 (Public) Filed Wednesday, April 13, 2011
TO STABILIZE TITLES AND TO PROVIDE A UNIFORM PROCEDURE TO ENFORCE CLAIMS OF LIEN SECURING SUMS DUE CONDOMINIUM AND PLANNED COMMUNITY ASSOCIATIONS.
Intro. by Vaughan.

View: All Summaries for BillTracking:

Bill summary

Replaces GS 47C-3-116 (procedures for liens for assessments by homeowners associations) with new GS 47C-3-116.1, and replaces GS 47F-3-116 (comparable provisions for liens for planned community associations) with new GS 47F-3-116.1. Most significant change in both statutes is inclusion of new subsections concerning foreclosure of lien in like manner as mortgage or deed of trust on real estate under power of sale. Specifies ways in which this procedure is to differ from that provided in Article 2A of GS Chapter 45. Provides for association to appoint trustee to conduct nonjudicial foreclosure proceeding and sale; notice to unit owner of intent to commence nonjudicial foreclosure; dismissal of the foreclosure procedure if debt plus costs, attorney’s fees, trustee commission is satisfied before upset period expires; authorization for association to bid at foreclosure proceeding; and trustee compensation. Also modifies notice procedures for lien claim, allowing service by first class mail rather than service procedure under Rule 4(j) of the Rules of Civil Procedure. Enacts new GS 47C-3-116.2 and 47F-3-116.2, validating nonjudicial foreclosure proceedings commenced by associations before July 1, 2011, and all sales and transfers of property as part of those proceedings, unless action to set aside foreclosure is commenced by July 1, 2012, or within one year of sale, whichever is later. Validation provisions are not applicable to pending litigation. Effective July 1, 2011.

© 2021 School of Government The University of North Carolina at Chapel Hill

This work is copyrighted and subject to "fair use" as permitted by federal copyright law. No portion of this publication may be reproduced or transmitted in any form or by any means without the express written permission of the publisher. Distribution by third parties is prohibited. Prohibited distribution includes, but is not limited to, posting, e-mailing, faxing, archiving in a public database, installing on intranets or servers, and redistributing via a computer network or in printed form. Unauthorized use or reproduction may result in legal action against the unauthorized user.

Printer-friendly: Click to view