Bill Summary for H 920 (2019-2020)

Summary date: 

Jun 18 2019

Bill Information:

View NCGA Bill Details2019-2020 Session
House Bill 920 (Public) Filed Tuesday, April 16, 2019
AN ACT TO MAKE VARIOUS CHANGES TO THE STATUTES GOVERNING CONDOMINIUMS AND CONDOMINIUM ASSOCIATIONS.
Intro. by D. Hall, K. Hall, Hardister.

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Bill summary

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

Revises the new language in GS 47C-2-109(b)(6) to require plats and plans to include a licensed architect's verified statement to depict locations and dimensions of horizontally limiting boundaries of each unit, rather than vertical boundaries, and include the location of any vertically limiting boundaries, rather than horizontal unit boundaries. Makes clarifying changes and expands on the required certification of a licensed professional surveyor required to be included with plats and plans. Deletes subdivision (1) and (2) of subsection (e) relating to requirements for recording plats and plans prepared under subsection (b), as amended, replacing it with a requirement that they must comply with G.S. 47-30 and with G.S. 47-30(b) or 47-30(o). Adds a new subsection (g) requiring the provisions of the Article and condominium instruments recorded pursuant thereto to be liberally construed in favor of the valid establishment of a condominium with respect to the submitted property.

Adds to GS 47C-2-105(a), regarding required content of a condominium declaration. Now allows a declaration to define a unit to include all or any portion of the airspace or subterranean space between two legally identifiable elevations, to include or exclude the surface of a legally described parcel of real property, to include or exclude airspace lying above and subterranean space lying below such surface, and to mean any specified combination of the foregoing, whether or not contiguous. Amends the proposed changes to subsection (8) providing that the time to exercise a right is seven years from the date the declaration was recorded or by October 1, 2020, whichever is later (previously set at seven years). Also provides that an extension of a development right or special declarant right is effective upon recording of an amendment to the declaration approved by the unit owners as provided in this subdivision, but the amendment must be recorded prior to the expiration of the development right or special declarant right affected by such amendment. Allows execution of the amendment to be evidenced by execution of the amendment by the requisite number of unit owners or by certification of an officer of the association executing such amendment confirming that the requisite number of unit owners approved such amendment at a duly called meeting of the unit owners. Makes conforming changes to GS 47C-2-117.

Modifies the proposed changes to GS 47C-2-117(b), adding that authority granted to the executive board under subsection (f), as amended, does not limit the authority of the executive board to propose any amendment for any other purpose permitted in the declaration or by the Chapter. Upon approval by the executive board of an amendment pursuant to this subsection, requires the executive board to set a date for a meeting of the unit owners to consider ratification of the amendment not less than 10 nor more than 60 days after mailing of notice of such meeting, including a copy or summary of the proposed amendment. Prohibits requiring a quorum to be present at the meeting. Deems the amendment ratified by the unit owners unless at that meeting unit owners holding a majority of the votes in the association reject the amendment.

Amends proposed GS 47C-2-117 by changing jurisdiction for reformation of a declaration from the clerk of superior court to the superior court, and makes conforming changes for the process. Also changes terminology to refer to a "complaint" rather than a "petition" throughout. Details further requirements and effect of filed complaints. Sets a one year statute of limitations on collateral actions contesting a judgment ordering reformation or correction, excluding actions for damages sustained as a result of the reformation or correction.

Amends GS 47C-2-101(b) setting forth requirements for the certificate by a licensed architect or engineer for condominum creation declarations, the same as those provided in GS 47C-2-105(a)(5).

Amends GS 47C-2-114, changing the title of the statute from “Easement for encroachments” to “Monuments as boundaries” and replaces subsection (a). Now deems the existing physical boundaries of a unit or the physical boundaries of a unit reconstructed in substantial accordance with the description contained in the original declaration to be its legal boundaries, rather than the boundaries derived from the description contained in the original declaration, regardless of vertical or lateral movement of the building or minor variance between those boundaries and the boundaries derived from the description contained in the original declaration. Maintains a unit owner's liability for willful misconduct and a declarant or any other person's liability for failure to adhere to any plats and plans or, in a cooperative, for failure to adhere to any representation in the public offering statement.

Enacts GS 47C-1-110 to deem the title to any unit constructed and deeded to a declarant for at least four years without legal challenge marketable in all instances where a declarant intended to establish on the declarant's property a condominium pursuant to the Chapter, as established by the recording of a declaration, plats, and plans, and by the subsequent recording of a deed or deeds intending to convey any unit or units, but failed to substantially comply with this chapter due to defects in the drafting, execution, or recording of the declaration, plats, or plans.

Amends GS 47C-3-103(a) to require officers to act according to the standards for officers of a nonprofit corporation as set out in GS 55-8-42 and to require members to act according to the standards for directors of a nonprofit corporation set out in GS 55A-8-30. Replaces the 67% requirement in subdivision (b) for removing a member, with a majority. Changes the time frames for setting a meeting to ratify the budget from no less than 10 or more than 60 days after mailing the budget summary (was, no less than 14 nor more than 30 days).

Amends GS 47C-3-108(a) regarding condominium association meetings, changing the time frame for providing notice meetings to allow notice no more than 60 days in advance, rather than no more than 50 days in advance.

Adds a new subsection to GS 47C-3-109, providing that if there is not a quorum, the association meeting may be adjourned by a majority of those present or by proxy. Provides that the quorum at the next meetings will be one-half of the last meeting that lacked a quorum, repeating until there is enough for a quorum.

Amends GS 47C-3-115(e), regarding assessments by an association for common expense, to add occupant misconduct to the provision.

Changes the act's long title.

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