Bill Summary for S 278 (2021)

Summary date: 

Jun 15 2022

Bill Information:

View NCGA Bill Details2021
Senate Bill 278 (Public) Filed Thursday, March 11, 2021
AN ACT TO CONFORM THE STATUTE RELATING TO REIMBURSEMENT FOR EXPENDITURES MADE BY SPOUSES ON JOINT PROPERTY WITH CURRENT FAMILY LAW PRACTICE, AS RECOMMENDED BY THE FAMILY LAW SECTION OF THE NORTH CAROLINA BAR ASSOCIATION, TO REQUIRE CERTAIN INFORMATION TO BE INCLUDED IN DECLARATIONS FOR CONDOMINIUMS PRIOR TO RECORDATION, TO CLARIFY THE APPLICABILITY OF THE NORTH CAROLINA CONDOMINIUM ACT, AND TO CLARIFY EXEMPTIONS FROM THE MARKETABLE TITLE ACT.
Intro. by Galey, Britt.

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Bill summary

House committee substitute to the 1st edition makes the following changes. Further amends GS 41-61 as follows. Moves the proposed changes to (a) regarding the rights of a surviving spouse or the personal representative of a deceased spouse to reimbursement from the other for expenditures made with respect to a subject property during the existence of a tenancy by the entirety after the termination by death, into a new subsection (c) and make conforming organizational and technical changes. Deletes the current language in (a) to instead provide that for property held as tenants by the entirety, neither spouse is entitled to reimbursement from the other for expenditures made with respect to the property during the existence of the tenancy by the entirety, including payments made for recurring expenses, improvements, and payments made on indebtedness secured by a lien on the property. Also amends (b) to provide that when the tenancy by the entirety is converted to a tenancy in common, responsibility for expenditures made with respect to the property held as tenants in common is allocated as provided by the law governing tenants in common (removes the provision making an exception for when a court order directs otherwise such as in an equitable distribution proceeding).

Adds the following content.

Adds to the required content of a declaration to create a condominium set out in GS 47C-2-105 as follows. Regarding the required description of each unit created by the declaration, specifies that a unit not specifically described by an upper or lower limiting boundary with reference to established datum is deemed to include so much of the land and air above or below the unit as would be attributed to a noncondominium parcel of land under applicable common or statutory law. 

Adds to the requirements for recordation of a condominium declaration or amendments thereto under GS 47C-2-101(b). Bars recordation unless all structural components and mechanical systems of all buildings containing or comprising any units created by a declaration or amendment are substantially completed in accordance with building design plans of a licensed architect or registered engineer and evidenced by a recorded certificate of completion executed by the architect or engineer (previously required a certificate executed by the architect or engineer stating that the building plans fully and accurately depict the structural components and mechanisms of all buildings containing or comprising any units thereby created). Adds a new provision to specify that the subsection does not require that the structural components and mechanical systems of building be depicted on the plats or plans described in GS 47C-2-109(b)(6), regarding the verification of the location and dimensions of horizontally limiting boundaries and the the location of vertically limiting boundaries, and identifying numbers for each unit. 

Amends GS 47C-1-102, which sets forth the applicability of the North Carolina Condominium Act, as follows. Current law lists specified sections of GS Chapter 47C that apply to condominiums created on or before October 1, 1986, unless their declaration expressly provides otherwise. Now, makes the listed sections of the Chapter apply to condominiums created on or before October 1, 1986, notwithstanding any conflicting provisions in the articles of incorporation, the declaration, or the bylaws, and notwithstanding any references in those documents to GS Chapter 47A (Unit Ownership Act). However, makes GS 47C-1-103 (Definitions) apply to condominiums created on or before October 1, 1986, only to the extent necessary in construing any of the listed sections (previously, also provided that this section did not apply if the declaration expressly provided to the contrary). Eliminates the provisions specifying that the sections listed do not invalidate existing provisions of the declarations, bylaws, or plats or plans of condominiums created on or before October 1, 1986.

Makes conforming changes to GS 47A-2, specifying that the listed sections of GS Chapter 47C made applicable to condominiums formed on or before October 1, 1986, under GS 37C-1-102, as amended, apply to condominiums formed by a declaration creating unit ownership made pursuant to GS 47A-2, which specifically reference GS Chapter 47A. Further states that the provisions of GS Chapter 47C listed in GS 47C-1-102 are not in conflict with GS Chapter 47A.

Effective July 1, 2022, amends GS 47B-3, excepting from marketable record title established under GS Chapter 47B any provisions contained in declarations of covenants applicable to the following: condominiums created under GS Chapters 47A or 47C; cooperatives defined under GS Chapter 47F; and planned communities to which GS Chapter 47F applies, excluding those in which all lots are restricted exclusively to nonresidential purposes, or those created prior to January 1, 1999, unless governed by an owners' association in existence as of July 1, 2022.

Makes conforming changes to the act's long title. 

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