Bill Summary for H 1018 (2021)

Summary date: 

May 23 2022

Bill Information:

View NCGA Bill Details2021
House Bill 1018 (Public) Filed Monday, May 23, 2022
AN ACT TO (I) MAKE VARIOUS AMENDMENTS AFFECTING REAL PROPERTY, (II) STRENGTHEN THE PERSONAL LIABILITY PROTECTION FOR LIMITED LIABILITY PARTNERSHIPS, (III) ALIGN THE AUTHORITY TO TRANSFER VENUE FOR JUDICIAL REVIEW OF CONTESTED CASES WITH OTHER CASES, (IV) MAKE A CONFORMING CHANGE TO ACCOUNT FOR SPECIAL FIDUCIARIES IN GUARDIANSHIP PROCEEDINGS, AND (V) CLARIFY AND IMPROVE THE LANDMARK DESIGNATION PROCEDURE, AS RECOMMENDED BY THE GENERAL STATUTES COMMISSION.
Intro. by Davis.

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Bill summary

Part I.

Replaces the language of GS 41-22 by explicitly abolishing the common law rule against perpetuities (previously, provided that Article 2, which creates a statutory rule against perpetuities, supersedes the common law rule). 

Amends GS 47-18.1, which provides for the procedure and effect of the registration of real property vested in a subsequent entity by operation of law due to merger, consolidation, or conversion of the entity formerly owning the property, to include in the statute's scope the vesting of real property in another entity due to the name change of the entity formerly owning the property. Makes conforming and technical changes.

Replaces the memorandum requirements and standard form for registering an option to purchase real estate under GS 47-119. Instead, sets forth required content for a memorandum to register an option to purchase or convey, a right of first refusal, or a right of first offer for real estate, including: the names and signatures of each record title holder and each purchaser, executed and notarized; a description of the subject real estate; the expiration of the option or right; and the title of the agreement and the parties to it as contained in the original written contract, or other sufficient references to the agreement. Revises the required content of a memorandum to register a contract to convey real estate under GS 47-119.1, now mirroring that required under GS 47-119, as amended by the act, as follows. Requires the memorandum to include each record title holder and contracting purchaser's names and signatures, executed and notarized, and include the title of the agreement and the parties to it as contained in the original contract, or other sufficient references to the agreement. Eliminates the standard form memorandum for real property conveyances.

Makes conforming changes in GS 47-120 to the provisions relating to the effect of memorandums executed under GS 47-118, GS 47-119, and GS 47-119.1. Revises language to reference memorandums acknowledged before a notary public, rather than before an officer authorized to take such acknowledgement. Makes further technical and clarifying changes. 

Part II.

Adds to the described nature of a partner's liability in a registered limited liability under GS 59-45, specifying that an LLP partner is not individually liable, directly or indirectly, for debts and obligations of the LLP incurred while it is registered solely by reason of being a partner or participating in the management or control of the business (previously did not explicitly include direct and indirect liability). Further specifies that the partner's individual liability protection includes any liability arising from indemnification, contribution, assessment, or otherwise from the partnership. Makes technical and clarifying changes. 

Amends GS 59-70, which provides rules for the distribution of the assets and liabilities of a partnership following its dissolution. Regarding partners' contributions to satisfy the partnership's liabilities, specifies that these liabilities include any incurred when the partnership was not a registered LLP. No longer allows a partner's legal representative to enforce the contributions as specified. Makes clarifying and technical changes. Makes language gender neutral.

Part III.

Makes organizational changes to GS 150B-45 relating to judicial review of contested cases. Adds new authority for a superior court to order a change of venue, without dismissing the petition, for petitions filed in an improper county. Corrects a reference to the State Board of Elections. 

Part IV. 

Regarding a respondent's guardian ad litem (GAL) appointed to represent them regarding an incompetency proceeding and any proposed guardianship, amends GS 35A-1107 to provide for the GAL's appointment to also continue until any relief other than dismissal of the petition or the appointment of a guardian is granted under Article 2 of GS Chapter 35A (currently, continues only until either the petition is dismissed or a guardian is appointed).

Part V.

Makes clarifying and technical changes to GS 160D-946 regarding local preservation commissions' designation of historic buildings, structures, sites, areas, or objects within their jurisdiction as a landmark. Directs the commissions to prepare and adopt principles and standards (was, principles and guidelines) for altering, restoring, moving, or demolishing properties designated as landmarks. No longer specifies that the Department of Natural and Cultural Resources (DNCR) must act through the State Historic Preservation Officer to review and comment upon a commission's proposed designation within the 30-day period following the commission's submission of the required investigation and report to DNCR's Office of Archives and History. Makes technical and clarifying changes. 

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