Bill Summary for S 312 (2023-2024)
|View NCGA Bill Details||2023-2024 Session|
AN ACT TO REQUIRE THAT NOTICE OF CLAIMS OF LIEN BE SERVED ON AN OWNER BY UNITED STATES POSTAL SERVICE CERTIFIED MAIL AND TO ELIMINATE ASSOCIATIONS' ABILITY TO FORECLOSE ON PROPERTIES FOR UNPAID ASSESSMENTS.Intro. by Smith.
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Amends GS 47C-3-116 and GS 47F-3-116, which each set forth requirements and procedures for the enforcement of liens for sums due to a homeowners' association under the NC Condominium Act and the NC Planned Community Act, respectively. Adds a new requirement for a claim of lien to sufficiently inform the owner that a lien is being placed on the property. Now requires the claim to be sent to the owner by certified mail. Eliminates the requirement for attempt of service pursuant to GS 1A-1, Rule 4. Makes conforming deletions to subsection (c). Eliminates the provision exempting the association from mailing a claim to an address known to be vacant or a unit with no US postal address. Repeals the entirety of subsection (f), which authorizes associations to foreclose a claim of lien through the executive board in a manner similar to a mortgage or deed of trust on real estate under a power of sale pursuant to GS Chapter 45, Article 2A, when an assessment remains unpaid for 90 days or more. Makes conforming deletions in subsections (c), (g), and (i). Repeals subsection (h), which (1) requires a claim of lien securing a debt consisting solely of fines imposed by the association interest on unpaid fines, or attorneys' fees incurred by the association solely associated with fines imposed by the association, to be enforced by judicial foreclosure only and (2) prohibits an association from levying, charging, or attempting to collect a service, collection, consulting, or administration fee from any owner unless the fee is expressly allowed in the declaration, and requiring any claim of lien securing a debt consisting solely of these fees to be enforced by judicial foreclosure only.