Congratulations to my law partners Harmony Taylor and Adam Marshall on being recognized as “Leaders in the Law” by North Carolina Lawyers Weekly! This prestigious award honors attorneys who have made a significant impact in both their profession and community. Harmony focuses her practice on representing community associations (HOAs and condos) and is a Fellow of the College of Community Association Lawyers (CCAL)—one of only 150 attorneys nationwide and just six in the Carolinas. She has co-chaired the NC Bar Association’s Community Association Law Group for the past two years and served for ten years on the NC Legislative Action … Continue reading
Category Archives: HOA & Condo Associations
Treasury Halts Corporate Transparency Act Enforcement for U.S. Businesses
On Friday we posted FinCEN Pauses Corporate Transparency Act Reporting Penalties Pending New Rule. By Sunday, the death spiral that appears to be the CTA continued, as the US Treasury Department announced suspension of enforcement of penalties and fines under the Act’s beneficial ownership reporting requirements for U.S. citizens and domestic reporting companies. This decision applies both to existing deadlines and future rule changes. Additionally, the Treasury Department plans to propose a rule that will limit the regulation’s scope to foreign reporting companies. The move aims to ease regulatory burdens on American taxpayers and small businesses while ensuring the rule … Continue reading
Requirements for NC Real Estate Brokers That Manage Associations
Community managers of larger homeowner and condominium associations often hold professional designations that demonstrate their expertise and experience in managing association responsibilities. These credentials signify specialized training in financial oversight, legal compliance, and operational management, ensuring associations are efficiently and ethically managed. Some of the most recognized community association management credentials include: For details on these credentials, visit the Community Associations Institute’s Professional Credentials page. Some community managers are also licensed North Carolina Real Estate Brokers. (FYI, I’ve been a broker for 43 years–how time flies!) This month’s eBulletin from the NC Real Estate Commission reminds licensees that when a … Continue reading
FinCEN Pauses Corporate Transparency Act Reporting Penalties Pending New Rule
On Thursday, February 27, FinCEN announced that it does not plan to issue fines, penalties, or take enforcement action against companies that miss deadlines for filing or updating Beneficial Ownership Information (BOI) under the Corporate Transparency Act. No penalties will be applied until new interim final rules takes effect. By March 21, 2025, FinCEN intends to issue a rule extending BOI reporting deadlines and providing clearer guidance. This decision reduces regulatory burdens while ensuring BOI reporting focuses on entities posing the greatest national security risks. For more details, visit FinCEN Not Issuing Fines or Penalties in Connection with Beneficial Ownership … Continue reading
Corporate Transparency Act Stay Lifted–FinCEN Announces New Filing Dates
As the result of a ruling on February 17th by the the US District Court for the Eastern District of Texas, the nationwide stay of the Corporate Transparency Act has now been lifted. CTA Beneficial Ownership Information filing requirements to FinCEN are back in effect. FinCEN has announced a new filing deadline of March 21, 2025 for most companies. Details can be found at FinCEN Extends Beneficial Ownership Information Reporting Deadline by 30 Days. General information on Beneficial Ownership Information filing requirements can be found at https://www.fincen.gov/boi.
Selecting a Vendor for Your Community Association
Selecting a vendor for a project or professional service is one of the more important duties of the board of directors in a homeowners or condominium association. It is one of the areas where the board must exercise its best business judgment. The NC Nonprofit Corporation Act (“Nonprofit Act”) gives guidance on the duties and liabilities of board members. Specifically, board members must discharge their duties: The board should keep these principles and duties in mind when they are making any decision for the association, but it comes into play quite frequently when selecting vendors. As we all know, there … Continue reading
The Importance of a Tellers’ Report in Documenting Votes Under Robert’s Rules of Order
Most managers, board member and attorneys in the community association industry have found themselves dealing with a hotly contested vote or election. Sometimes the end of voting is just the start of further challenges, with bickering over who voted, how they voted, and who really won. An effective way to document and report on voting outcomes is through a tellers’ report. If you don’t regularly peruse your copy of Robert’s Rules, you may not know what this is, so this blog will tell you what a tellers’ report is, how to prepare one, and what it can do for your … Continue reading
2025 Community Association Law Seminar Highlights Emerging HOA/Condo Legal Issues
Each year attorneys from our firm participate in the Community Associations Institute’s (CAI) national Community Association Law Seminar. This event provides an unparalleled opportunity for continuing legal education, networking with other attorneys who practice HOA/condo law, and exploring community association legal trends. This year’s seminar was particularly noteworthy, as Law Firm Carolinas attorney David Wilson was inducted into the prestigious College of Community Association Lawyers (CCAL). Established by CAI in 1993, CCAL recognizes attorneys who have demonstrated exceptional contributions to the practice of community association law through their writings, teachings, and industry involvement. Of the thousands of attorneys practicing in … Continue reading
US Supreme Court Rules on Corporate Transparency Act Injunction
In the ongoing ping-pong game that is the Corporate Transparency Act, today (January 23) the US Supreme Court has allowed the government to enforce the CTA, which requires businesses to disclose their beneficial ownership information. This decision lifts the prior injunction and permits the law’s implementation while its constitutionality is reviewed by the Fifth Circuit. Arguments are scheduled to be heard on March 25. Justice Neil Gorsuch supported immediate action to clarify universal injunctive relief, while Justice Ketanji Brown Jackson dissented, arguing the government failed to demonstrate urgency. To read the case, visit Supreme Court opinions. Based on recent history, we anticipate that FinCEN will soon … Continue reading
Do Committee Recommendations Require a Second?
Recently, I’ve been tackling some common procedural myths—those phrases and practices you often encounter in meetings but aren’t necessarily accurate. If you’d like to explore some recent examples, check out these posts: One phrase frequently heard in meetings, particularly board meetings, is: “Because the motion is from a committee, it doesn’t need a second.” But is this actually true? Let’s unpack it. Setting the Record StraightFirst, let’s address the stakes: Regardless of your approach, the parliamentary police won’t show up at your meeting. That said, a presiding officer demonstrates leadership by using proper parliamentary phrasing, which helps maintain professionalism and … Continue reading
Chris Gelwicks to Join Law Firm Carolinas on February 3
Chris brings over 25 years of expertise in representing homeowners and condominium associations with their formation, operations, collections, and litigation. In addition, with 60+ jury trials, countless bench trials, and mediations across North and South Carolina, he offers impressive litigation experience. Chris has represented clients in trial and appellate courts, including the North Carolina Supreme Court, and is a recognized authority in the field. A sought-after speaker, Chris has presented at national and regional CAI conferences, as well as NC and SC Bar CLEs. He also serves on the Case Law Update Team for the Community Associations Institute. We are excited … Continue reading
Corporate Transparency Act Back on Hold (For Now)
If this feels like legal “whack-a-mole,” you’re not alone! Yesterday, Thursday, December 26, the Fifth Circuit Court of Appeals issued an order vacating its earlier decision to stay the District Court’s preliminary injunction, which had enjoined the enforcement of the Corporate Transparency Act’s (CTA) compliance reporting deadlines. (See Corporate Transparency Act Reinstated by Fifth Circuit Court of Appeals) The Fifth Circuit’s initial stay temporarily allowed enforcement of CTA deadlines while the case was under review. However, the Court has now reversed its earlier decision, explaining that its merits panel is expediting the case and needs to preserve the constitutional status … Continue reading
Corporate Transparency Act Reinstated by Fifth Circuit Court of Appeals
A prior post, Corporate Transparency Act Blocked Nationwide by Texas Federal Court, reported that on December 3, Judge Amos L. Mazzant III of the U.S. District Court for the Eastern District of Texas issued a preliminary nationwide injunction against the Corporate Transparency Act (CTA). The post also advised staying informed, as the compliance deadline of December 31 could be reinstated. Today, December 23, the Fifth Circuit Court of Appeals reinstated the CTA, which mandates businesses disclose their beneficial owners to combat financial crimes. The government successfully argued that the law is constitutional and vital for national security. In its decision, … Continue reading
Marshall & Wilson to Present at 2025 CAI National Law Seminar
Attorneys Adam Marshall and David Wilson of Law Firm Carolinas will be presenters and speakers at the Community Associations Institute (CAI) 2025 National Law Seminar. The annual seminar is put on by the College of Community Association Lawyers (CCAL) and is the premier legal event for community association lawyers and other industry professionals. Their topic is titled “Weathering the Storm: Getting Your Community Clients Through PR Nightmares.” Every attorney who works with community associations will at times have to help their clients navigate potential PR disasters—whether combatting false narratives, half-truths, & other misleading statements from a vocal minority or speaking … Continue reading
Corporate Transparency Act Blocked Nationwide by Texas Federal Court
The federal Corporate Transparency Act (CTA) applies to most community associations and has certain federal filing requirements that start as to existing HOAs and condos on January 1, 2025. For more details, see our prior blog posts (What Is the “Corporate Transparency Act” and Why It Matters to Your Association and Directors, Update on The Corporate Transparency Act: Tips for Managers and Board Members, Be Aware of Corporate Transparency Act (CTA) Scams!) or these videos by my law partner Steve Black: Manager’s Update on Corporate Transparency Act or Board of Directors Update on the Corporate Transparency Act. However, yesterday, December … Continue reading
Suspended Voting Rights Meant Homeowner Couldn’t Run for Board
In a recent case from Colorado, the Colorado Court of Appeals held that an HOA could prevent a homeowner whose voting rights had been suspended from running for election to his board of directors. To read the entire Colorado case, here is a link: Majersky v. LCM Property Management, Inc., No. 24CA0046 (Colo. App. Oct. 10, 2024). NOTE: Although this case is not binding in North Carolina or South Carolina, it may still be helpful to take a look at the reasoning used by the Colorado court. Gregory Majersky was a homeowner in the Summerfield Villas Homeowners Association. The professional … Continue reading
Be Aware of Corporate Transparency Act (CTA) Scams!
Recently one of our clients received a solicitation titled “Mandatory Beneficial Ownership Reporting.” It was noted as form 5102 and states that there is a filing fee of $119.00. The form looks very legitimate and like any other tax form you might receive from the federal government. However, beware of these types of solicitations, as the form received is a known scam. It is important to note that there is no governmental fee associated with filing Beneficial Ownership Information (BOI). The Financial Crimes Enforcement Network (FinCEN), the governmental entity where BOI is to be reported, has published the following Alert: … Continue reading
Liability for Fallen (or Threatening to Fall) Trees
This year, in the aftermath of Hurricane Helene and other storms which have affected our region, we are frequently asked who is responsible for cleanup or damage from fallen trees. This blog won’t address Hurricane Helene issues directly, as this would require an in-depth discussion of insurance and complicated issues involving FEMA, State, and local government. Information on that can be found in Jim Slaughter’s recent blog, Legal Tips for HOAs and Condos Following a Natural Disaster. Instead, this blog seeks to address the more common scenarios that come when trees fall from one property to another and cause property … Continue reading
North Carolina Hurricane Helene Resources Sheet
Earlier this month we shared information on Legal Tips for HOAs and Condos Following a Natural Disaster, which included links to past association articles as well as online resources. The Community Associations Institute (CAI) has prepared a three-page handout on state, local, and federal resources that might assist those impacted by Hurricane Helene. The document includes guidance on: The North Carolina Hurricane Helene Resources sheet can be found below. CAI will be posting and updating the document as more information becomes available, but said we could share in hopes it is of help.
Voting Platforms for Nonprofits, HOAs, and Other Organizations
Our firm’s attorneys serve as parliamentarians for many of the largest trade and professional associations as well as counsel to many hundreds of community associations (HOA and condominium associations). Given this extensive experience, we are frequently asked to advise on electronic and online voting platforms. These days, deliberative bodies often rely on electronic voting systems to conduct elections and facilitate decision-making, especially when it would be impractical or costly for members to gather in person. Digital voting platforms streamline this process by providing secure, efficient, and user-friendly tools that ensure votes are conducted fairly and transparently. Voting platforms generally fall … Continue reading