Amends GS 47C-3-107.1 (procedures for fines and suspension of condominium privileges) to require that, unless the association agreement provides otherwise, the parties must engage in alternative dispute resolution (ADR) before instituting legal proceedings. Specifies that a party choosing to challenge a decision of the executive board, may, no later than 10 days after receiving notice of the decision, and prior to beginning legal proceedings, request in writing to the other party that the other party submit the claim to mediation or binding arbitration (i.e., ADR). Specifies that if neither party makes a timely request for ADR, the obligation for alternative dispute resolution is satisfied. Lists five matters that apply to claims for mediation and arbitration including the availability of legal proceedings if the parties don’t invoke mediation or settle or for failure to abide by the settlement agreement, and that the party invoking ADR is responsible for all costs of the ADR.  

Amends GS 47C-3-116 (pertaining to liens for sums due a condo association) to require that a party must comply with the ADR process described above before filing a claim of lien or otherwise beginning a legal proceeding. Provides for notice to unit owner of the right to request ADR as described above.

Amends GS 47F-3-107.1 (procedures for fines and suspension of planned community privileges or services) to set forth and require the same ADR proceeding as enacted in GS 47C-3-107.1. Similarly amends GS 47F-3-116 (pertaining to liens on a lot for sums due the association) to require that a party must comply with the ADR process described above before filing a claim of lien or otherwise beginning a legal proceeding. Provides for notice to lot owner of the right to request ADR as described above.

Applies to actions taken by an executive board after the act becomes law.