Health Care and Estate Planning: Legal Documents versus Medical Orders

The two primary health care documents attorneys prepare for clients as part of an estate plan are a health care power of attorney and an advance directive.  An advance directive is also referred to as a “living will” or a “declaration for a natural death.”  A health care power of attorney may contain an advance directive, in which case there may be only one multipurpose health care document in an estate plan. Health Care Powers of Attorney A health care power of attorney is a document where the principal appoints an agent to make health care decisions on their behalf … Continue reading

Court of Appeals Confirm Vagueness and Ambiguity in Zoning Ordinance Will be Viewed in Favor of Free Use of Property

This week the North Carolina Court of Appeals issued a ruling in Frazier v. Town of Blowing Rock, 2022-NCCOA-782, that confirms the views of the Courts in this State that vague terms or ambiguity in language, in this case relating to a local zoning ordinance, will be viewed in favor of the free use of an owner’s property. In the community and association world (HOA and Condominiums) we have seen this line of decisions from the courts before as they deem vague restrictions or covenants in association governing documents as void and unenforceable for vagueness.  This holds true for local … Continue reading

Physiology and Estate Planning: An Imperfect Pair

Early in my career and as I began specializing my practice in estate planning, I always found aspects of drafting and explaining health care powers of attorney and advance directives to be peculiar to my background.  Using terminology such as “persistent vegetative state”, “advanced dementia” and “artificial hydration and nutrition” felt out of place in a law office.  Additionally, evaluating a person’s mental capacity requisite to execute certain legal documents was daunting with no academic background in physiology.  I had not taken so much as a basic biology course since my freshman year at North Carolina State University circa 2002/2003.  … Continue reading

Robert’s Rules of Order in US Court of Appeals Decision

This case mentioning Robert’s Rules of Order appeared in the “Roberts Rules in the News” page of my parliamentary website at www.jimslaughter.com. The decision is a bit of a unicorn. While many news articles mention Robert’s and meetings issues, few court cases do. (Court decisions that make it to published appellate decisions tend to go on for longer and cost more money than most meetings disputes warrant.) Far fewer federal court opinions deal with Robert’s disputes, and this is from a U.S. Court of Appeals, which is shockingly rare. So even though the decision may not be that significant to … Continue reading

HOA/Condo Rental Restrictions, Corporate Owners & Institutional Investors

Requests for amendments to declarations tend to go in waves. Twenty years ago many associations were concerned about certain categories of sex offenders living in their communities. For several years now, the declaration amendment our firm most often gets asked about has to do with rental restrictions. Such questions arise out of concern that too many rentals or certain types of rentals will impact the “character” of neighborhoods. As a result, associations regularly approach our firm for advice on rental bans, rental caps, or restrictions on short-term/transient rentals like Airbnb or VRBO. (See Top Declaration Amendments for an HOA or … 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

New Announcement by HUD Means More Options for Flood Insurance

All community association boards want to be good stewards of the funds collected from their homeowners.  Sometimes, when finances are tight, a board has to face hard choices about how to reduce costs.  That might mean reducing services or even deferring needed maintenance for a period of time where that maintenance is not essential to safety or structural integrity.  As with all contracts, boards want to find the insurance that best suits their community and offers the best protection—at the best price.  For those townhome and condo communities located in a flood zone, the question often arises whether they must … Continue reading

Non-Foreign Affidavits / FIRPTA When the Seller Is a Foreign National

You may be asked to sign a non-foreign affidavit, also called a FIRPTA, if you are selling property.  It is one of the many documents that will be a part of your set of seller documents.  People can get a little confused or upset when they see language on the affidavit concerning a 10% or 15% IRS withholding.  The FIRPTA does not apply to everyone and is a common form to help the closing attorney confirm whether there will be an IRS withholding at closing.  It’s simple enough to follow the guidelines but I find it’s a bit better to … Continue reading

Yes, Owners of a Restricted Lot Can Be Fined for THEIR TENANT’S Violations of Covenants!

With the appreciating residential real estate market, rental homes are becoming an increasingly common feature in residential neighborhoods subject to restrictive covenants.  Restrictive covenants will typically have a few main types of provisions that lot owners opt into when purchasing their restricted lots—architectural standards, obligations to pay assessments to a homeowners’ association, provisions outlining the common area/amenities- but also some regulations that relate to conduct of individuals who reside on a lot.  Sometimes the practice of leasing will even be prohibited or limited in the restrictive covenants of a community, or even provide that the HOA can screen prospective tenants. … 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: The IRS is also assisting taxpayers who live outside the disaster areas, but whose records necessary to meet a deadline are located within disaster areas, and can be reached at 866-562-5227. The IRS disaster relief webpage has additional information and details on qualifications and deadlines. Additionally, a financial planner or CPA may provide additional guidance on deadlines and tax issues relating to the extended relief.

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

Obligation to Pay HOA Dues Survives Even the Strangest Circumstances

As community association attorneys, we hear all sorts of reasons from homeowners to explain why they haven’t paid their assessments.  These usually include legitimate explanations such as illnesses like COVID, job loss, or other hardships.  Some homeowners are more creative.  One owner recently told our office that the presence of “entities” in the home was a reason for non-payment.  In a recent case out of Kentucky, William and Theresa Thompson told their homeowners association they shouldn’t have to pay assessments on two lots they owned because the lots weren’t there anymore.  Although existing as two separate lots, they were treated … Continue reading

Community Associations May Have a Duty to Address Neighbor-to-Neighbor Discrimination

Community associations have historically been able to stay largely uninvolved in neighbor-to-neighbor disputes unless the conduct complained of violated the governing documents of the association. If no governing documents were being violated, the neighbors would be expected to work out the issues among themselves. Now, there is an important step for association boards and managers to consider when learning of neighbor-to-neighbor disputes. The Fair Housing laws may create a duty for community associations to investigate complaints of discrimination between neighbors and to possibly take some action. Note – This duty might exist even if the board of directors and association manager … Continue reading

Into the Wild, at Home: Wildlife and Wild Animals in Community Associations

by Joe Cantlupe Human lifestyles occasionally clash with wildlife instincts in community associations. Safety guidelines, educational programs, and outside experts resolve most creature conflicts. Some of the most scenic community associations in the U.S., often those that touch the ocean or gorgeous countryside, can count wildlife as one of their unique draws, but there can be trouble in paradise too. Alligators sometimes bask in the sun’s rays on a driveway or wander into an open garage. Vultures pluck at windshield wipers and deposit heavy droppings. Deer crash into cars. Wild peacocks damage roofs and make loud screeching sounds. Community associations … Continue reading

New NC Supreme Court Case: Applicability of Condominium Act Foreclosure Rights to Pre-1986 Condominiums

A decision last week (November 4) by the NC Supreme Court provides helpful authority to older condominiums not only in the context of foreclosures, but in the larger context of relying on the retroactive portions of the NC Condominium Act (Chapter 47C). In the Matter of the Foreclosure of a Lien by Executive Office Park of Durham Association, Inc Against Martin E. Rock A/K/A Martin A Rock considered the issue of whether a pre-October 1, 1986 condominium, formed pursuant to the NC Unit Ownership Act (Chapter 47A), has the power of sale for foreclosure as set forth in the Condominium … Continue reading

What Do You Mean We Need a Member List For Our Meeting?  Exploring the Requirements of NCGS § 55A-7-20

The requirement to have a member list available for homeowner association and condominium member meetings has become increasingly apparent with the adoption of recent legislative changes to the nonprofit act related to the ability of community associations to hold membership meetings electronically or on some virtual/remote platform. The requirement to make the membership list available is nothing new however. The nonprofit act (N.C.G.S. §55A) states explicitly that “After fixing a record date for a notice of a meeting, a corporation shall prepare an alphabetical list of the names of all its members who are entitled to notice of the meeting. The … 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.

Wage Disclosure Requirements for North Carolina and South Carolina Employers

Recently, lead segments on numerous national news programs focused on a new law, effective November 1, 2022, that requires covered employers to disclose a good faith salary range (including the minimum and maximum annual salary or hourly rate) for every job, promotion, and transfer opportunity that is advertised.  Anyone casually listening to such segments may not have realized that the much publicized and debated law, commonly referred to as a pay transparency law, was recently enacted in the State of New York. Today, more and more states have enacted or are creating pay transparency laws similar to that of New … Continue reading

Book Review: Run, Don’t Walk, to Buy Robert’s Rules of Order Fast Track

Ann Macfarlane, a Professional Registered Parliamentarian in Seattle who works with many local governments and is author of Mastering Council Meetings: A Guidebook for Elected Officials and Local Governments, published the following review of Robert’s Rules of Order Fast Track on her website: Reader, I am over the moon about Jim Slaughter’s new book, Robert’s Rules of Order Fast Track. This brief, affordable and funny guidebook will give you the tools to apply Robert’s Rules immediately and effectively. Jim’s humor and focus kept me reading with enjoyment, underlining key phrases, and dotting the text with exclamation points. Jim starts the first chapter, … Continue reading

Ad Valorem Real Property Tax Exclusions in North Carolina

All homeowners are responsible for real property taxes collected by the local taxing authority.  The antiquated legal terminology for this type of tax is an ad valorem tax, which is defined as a property tax based on the assessed value of the property, which may or may not be equivalent to its market value.  The local taxing authority assesses the value of your home or other real property and charges you a tax based on the applicable tax rate.  You can also make a timely appeal of an assessed value determination.  There are many programs and regulations in North Carolina … Continue reading