Under North Carolina law, parties entering into loan agreements may specify an amount for attorneys’ fees, in the event that one of the parties breaches or there is a default. The prescribed amount of attorneys’ fees may be up to 15% of the amount owed under the terms of the loan agreement. Frequently, the loan agreement is silent about the specific amount of attorney’s and the agreement simply states that the breaching party shall be responsible for “all reasonable fees and expenses.” The applicable statute defines “reasonable” as 15%. The United States Court of Appeals for the Fourth Circuit (which … Continue reading
Author Archives: Administrator
Meister, Slaughter & Marshall Recognized
Law Firm Carolinas Partner Adam Marshall was a presenter at the Community Association Institute’s (CAI) 2023 Annual Conference in Dallas, Texas. The conference was attended by over 2,600 community managers, homeowner board members, leaders and business partners from 44 states and 10 countries. Marshall and Augustus Shaw, IV, Esq. of Arizona, presented on “Navigating Board Officer Responsibilities and Avoiding Conflict.” Marshall was also recently appointed by the Greensboro City Council to the Greensboro ABC (Alcohol Beverage Control) Board. Marshall has previously served on the Greensboro Human Relations Commission and Greensboro Board of Adjustment as well as Chair of the Greensboro Zoning Commission and … Continue reading
Two Pending NC Bills Would Significantly Change Association Governance and Practice
Law Firm Carolinas partner Harmony Taylor serves on the NC Legislative Action Committee (NC-LAC), a committee of the Community Associations Institute. The NC-LAC monitors and makes recommendations on legislation that affects community associations, and its members talk with legislators on issues of concern to HOAs and condos. The NC-LAC has allowed the firm to share the following update on two proposals of interest. The legislature continues to consider a number of laws this session which would significantly impact community associations in North Carolina. HB 542 has been referred to the Committee on Rules, Calendar, and Operations of the House. HB 551 … Continue reading
Conflicts of Interests: What Community Association Directors Should Know
Are you a director on your community association executive board? If so, you may be wondering about conflicts of interest. When do you as a board member have a conflict of interest? First, what is a conflict of interest? The North Carolina Non-profit Act defines a conflict of interest transaction as “a transaction with the corporation in which a director of the corporation has a direct or indirect interest.” A direct or indirect interest means that you have some personal interest in the transaction beyond your interest as a member of the Association. Basically, the question is will you (or … Continue reading
Hurricane Ian Victim’s Tax Relief Deadline Extended for NC and SC Residents
The Internal Revenue Service has recently announced additional relief for Hurricane Ian victims across North Carolina and South Carolina. The tax relief postpones several tax filing and payment deadlines in North and South Carolina, as outlined below: Individuals and businesses located anywhere in the Carolinas will now have until February 15, 2023 to file returns, provided they had a valid extension to file their 2021 return. Individuals and businesses will have until February 15, 2022 to pay taxes that were originally due on September 25, 2022 in South Carolina and September 28, 2022 in North Carolina (the full list of … Continue reading
What Are An Association’s Responsibilities For Ensuring An Owner’s Safety?
There is often a breakdown between what homeowners within a community and the board of an association believe are the responsibilities of the association. Our association clients experience this with a myriad of issues, and one area of particular importance is that of homeowner safety. For associations hoping to understand what their responsibilities are in ensuring a homeowner’s safety and wellbeing, a great place to start is the governing documents. The governing documents will explain an association’s responsibilities in regard to the safety of homeowners, and their additional responsibilities in general. An association should take reasonable action to protect those … Continue reading
Wilson Elected Chair of CAI’s South Carolina Legislative Action Committee
Law Firm Carolinas Partner David Wilson has been elected Chair of the South Carolina Legislative Action Committee (SC LAC). The SC LAC is a committee of the Community Associations Institute that monitors and influences legislation that impacts community associations, and its members talk with legislators on issues of concern to HOAs and condos. For more information on the activities of the SC LAC, visit the South Carolina Legislative Action Committee page.
Law Firm Carolinas Named to Fast 50 List
Law Firm Carolinas has been named by the Triad Business Journal to its “Fast 50 List,” which consists of the 50 fastest growing businesses in the Triad. It is the firm’s third recognition on the Fast 50 list. Managing Partner Carole Albright points to several examples of the firm’s growth over the past three years, including the purchase of a larger Charlotte office, renovations in the Greensboro office, and the opening of several new offices, for six total—Greensboro, Charlotte, Raleigh, Wilmington, Columbia (SC), and Greenville (SC). Partner Jon Raymer accepted the firm’s Fast 50 recognition at the Business Journal’s recognition … Continue reading
NC Bar Association Interview with Jim Slaughter
The NC Bar Association recently interviewed partner Jim Slaughter about association meetings, parliamentary procedure, Robert’s Rules of Order, and his two new books on meeting procedure. The article can be found in this month’s North Carolina Lawyer Magazine here:Parliamentary Procedure, Robert’s Rules, and Jim Slaughter: Award-Winning Author Discusses Two New Books and More. Jim is an attorney, Certified Professional Parliamentarian-Teacher, Professional Registered Parliamentarian,, and past President of the American College of Parliamentary Lawyers. He has written four books on meeting procedure, including Robert’s Rules of Order Fast Track and Notes and Comments on Robert’s Rules, Fourth Edition (with a new Fifth … Continue reading
Why Is My Main Motion Not in Order?
While there are numerous reasons why any motion may not be in order, I will attempt to give some guidance on why your main motion would not be in order at a meeting. Main motions are the most common motions, and are how business is done at meetings. You are likely very familiar with these motion, though you probably do not refer to these motions as “main motion.” Motions to have the organization take some action are main motions. For example, common main motions are “I move to adopt the budget,” “I move to adopt resolution 1,” “I move to … Continue reading
Adam Marshall Named Partner at Law Firm Carolinas
Attorney Adam Marshal has been named a partner at Law Firm Carolinas, which has six offices throughout North and South Carolina. His practice includes community association (HOA and condo) law as well as land use, zoning and planning issues before the Board of Adjustment and Zoning Commission.
Remote Online Notarization Coming (Again)!
With the passage of NC House Bill 776, North Carolina joins 37 other states in adopting rigorous RON (Remote Online Notarization) policies. This brings the end to end security measures and accurate closing procedures that lenders and other industry stakeholders demand, while offering the convenience and safety customers desire. The process revolves around the software platform, one of the most common being Pavaso. This swiss-army knife solution combines the teleconferencing abilities of Zoom with document management and signing capabilities of Docusign and adds encryption and recordkeeping and identification verification. This special suite of tools works together to solve the hardest … Continue reading
Is it “safe” for community associations to allow food trucks on common areas?
Food trucks are very on trend right now, and many homeowner and condominium associations are considering inviting them to gatherings and community wide parties. Hopefully, boards think before they make a call and reach out to their attorney or manager to make sure that they are proceeding legally. Here are some thoughts to consider when choosing when or how to invite a food truck to your next community event. First, boards generally have the right to decide whether or not to invite or allow food trucks on the common area. Common areas, such as pool decks, clubhouses, community parking lots … Continue reading
Nomination Procedures for Elections
If you are administering an election for your group or association, then you may have questions about how the nomination process works. Do you need to use an election committee? What are nominations from the floor? What about other methods of doing nominations? Fortunately, it’s not as difficult as it may seem. There are six different methods: (1) nominations by the chair, (2) nominations from the floor, (3) nominations by a committee, (4) nominations by ballot, (5) nominations by mail, and (6) nominations by petition. Nominations by the Chair is when the Chair selects candidate(s) for a position. Typically, this method is not … Continue reading
Law Firm Carolinas: New Shareholder, Partners, Offices and Lawyers
Law Firm Carolinas announces the following changes: Harmony Taylor, who is in the Charlotte office and practices community association (HOA and condo) law and civil litigation, has been named a Shareholder. Three attorneys have been named Partners: Joe Thompson, who practices residential and commercial real estate, and David Wilson, who practices North and South Carolina community association (HOA and condo) law, both from the Charlotte office; and Jon Raymer, who practices commercial and residential real estate, from the Greensboro office. There have also been several recent additions to the firm: Nancy Guyton and Hunt Harris have joined the Wilmington office. … Continue reading
Frequent Asked Questions about Foreclosure Sales
More than ever, people are buying property through foreclosures. Do you want to buy property at a foreclosure sale, but you have questions about the process? If so, then this article is for you. For a general explanation of the foreclosure sale process, take a look at this previous article. However, some common but more specific questions that people have about the foreclosure sale process are: Where does the sale take place? Well, by law the notice of sale must contain the location where the sale is going to be conducted. Most sales are noticed to be conducted on the … Continue reading
New NC Appellate Case: Executive Office Park of Durham Association, Inc. v Rock (Older Condo Collections)
NOTE: The case that is the subject of this blog was reversed by the NC Supreme Court in November 2022. See New NC Supreme Court Case: Applicability of Condominium Act Foreclosure Rights to Pre-1986 Condominiums. Today, Tuesday, May 18, 2021, the NC Court of Appeals issued its decision in Executive Office Park of Durham Association, Inc. v. Rock. The decision may impact collections in older condominiums, and is a “published” decision. That means the decision is controlling legal authority and can be cited in other cases. In this case, an older condominium association (meaning the association was not fully subject to … Continue reading
Automatic-Renewal Contract Clauses
Consider this hot-off-the-press from an agreement I reviewed this morning: “If neither party has given the other thirty (30) days written notice of the desire to terminate this Agreement at the end of the any given contract period, then the term shall be automatically renewed for an additional contract period term.” As service providers—e.g., landscapers, vendors, and pool services—aim to retain clients, an increasing presence in service contracts is the automatic-renewal clause (“Evergreen Clause”). Essentially, an Evergreen Clause provides for automatic renewal following the expiration of an agreement. That is, granting prior consent to extend the term of an agreement … Continue reading
Order Extend Protections for Tenants; Reaffirms Requirements for Landlords
In late December 2020, both President Trump and North Carolina Governor Cooper extended existing Orders providing protections to individuals at risk of eviction through January 31, 2021. As a result, eviction of some residential tenants for nonpayment of rent may continue to be halted during this time period. However, protection from eviction is not automatic and relates only to situations involving nonpayment of rent. In order to receive relief from eviction, a tenant at risk for eviction for failure to pay rent must submit a Declaration under penalty of perjury that the tenant meets certain requirements. The Declaration must state … Continue reading
The Cloudy Future: What New Statutory Trends Concerning Marijuana Means for Associations
In a historic first, the United States House of Representatives voted on legislation this year that, if passed by the Senate, would de-schedule marijuana from the Controlled Substances Act. The Marijuana Opportunity Reinvestment and Expungement (MORE) Act was originally introduced by House Judiciary Chair Jerry Nadler last fall and passed the Committee by a vote of 24-10 in November. On December 4, 2020, the House passed the MORE Act—the bill passed by a vote of 228 to 164.If enacted into law, the MORE ACT would decriminalize marijuana use at the federal level, expunge federal marijuana convictions and arrests, and, most importantly for … Continue reading