When it comes to declaration amendments, our firm is most often asked about restrictions on rentals, whether complete or percentage bans, restrictions on short-term rentals, or limiting corporate rentals. (See HOA/Condo Rental Restrictions, Corporate Owners & Institutional Investors and Short-Term Rentals in North Carolina and South Carolina HOAs and Condominiums) In a decision issued this week (February 21, 2024), the North Carolina Court of Appeals struck down a condominium rental amendment as unreasonable. While not really creating any new law, associations considering a declaration amendment, particularly as to rental restrictions, should be aware of the case. Mileview LLC et al … Continue reading
The Developer is Offering the Association (a lot of) Money to Sign a Release- Should the Board of Directors Consider Signing it?
Over the last year our firm has seen an uptick in offers to associations from the developer to pay money in exchange for signing a release. The language of releases can vary but the purpose is almost always the same – The money being offered to the association is in exchange for releasing the developer and any other named parties from any and all claims, known or unknown, that the association may have. These claims being released will almost certainly include claims for construction defects for the association’s amenities but can also include a release for claims related to the … Continue reading
Why the Chair Never Asks “Is There Any Old Business?” (HINT: Because There’s No Such Thing)
At some point in some board meeting, you’re like to hear a presiding officer ask, “Is there any Old Business?” and wait for a reply. It’s intended as an opportunity for members to raise issue that were addressed at an earlier meeting. The problem with this question is twofold: THERE’S NO SUCH THING AS “OLD BUSINESS“ Whether your parliamentary authority is Robert’s Rules of Order Newly Revised (12th Edition) or some other parliamentary manual, there’s no category of business named “Old Business.” The proper term for business that carries over from the prior meeting is “Unfinished Business.” The difference is … Continue reading
Five Factors a Court Will Likely Consider to Determine Validity and Enforceability of Amendments Recorded by Developers
The 2006 Court of Appeals case of Queens Grant II Horizontal Property Regime vs. Greenwood Development Corporation (368 S.C. 342) provides guidance for validity of amendments to the Declaration/Master Deed (Declaration) recorded by Developers/Declarants (Developer). In this case the homeowner’s association sued the Developer over the validity of an amendment it recorded to the Declaration that increased assessments. The Court upheld the amendment (except for a few units that had a special arrangement that are not relevant to this blog). The Court used the following general analysis to determine the validity of this amendment recorded by the Declarant: Please contact … Continue reading
Divorce for Seniors
Recent studies have revealed that divorce is no longer for the young. Couples that are over the age of 50, even over 60 and beyond, are now divorcing at an ever-increasing rate. Issues that arise in a separation and divorce for those that have been married for over 30 sometimes 40 years are often times different than the issues for people that have been married for less than 20 years. Depending on the stage of the marriage, at Law Firm Carolinas our board-certified family law attorneys, Carole R. Albright and T. Keith Black, and our associate attorneys, John Boschini and … Continue reading
Why Do I Have to Pay Child Support if I Can’t See My Child?
One of the most common questions I receive as a family law attorney is: “The mother/father of my child isn’t letting me see them, so why do I have to pay child support?” In North Carolina, as in many other states, child support is a separate issue from custody arrangements. It’s not uncommon for one parent to withhold custody from the other, leaving many wondering why child support payments are still required in such circumstances. In this blog post, I will explore the legal perspective in North Carolina and shed light on why child support obligations persist even when custody … Continue reading
Effect of Separation and Divorce on Estate Planning in NC
If you and your spouse are separated or you have recently divorced, this blog will summarize the relevant North Carolina statutes. Separation and Estate Planning A separation alone has no legal effect on your estate plan. If you and your spouse have executed a separation agreement, it will likely have reciprocal renunciations of statutory spousal rights such as the Year’s Allowance, Intestate Succession, and the Elective Share. These spousal rights exist regardless of whether your Will or Trust includes your spouse. As my Wills and Trusts professor always said, “you can’t disinherit your spouse in North Carolina.” Without a … Continue reading
Association Not Liable for Volunteer’s Actions in Pool Incident
In a recent case heard by the Illinois Court of Appeals, Muhs v. Fox Point Homeowners Association (the “Association”), the Appellate Court of Illinois ruled in favor of a homeowners association, stating that the association was not liable for the actions of a volunteer committee member. Doreen Colletti Muhs (the “Homeowner”) sued Fox Point Homeowners Association (the “Association”) and Stacy Boyum for injuries she sustained during a party on Fox Point’s premises when Boyum knocked the Homeowner to the ground while trying to encourage her and other party guests to jump into the pool. Boyum was one of three volunteers … Continue reading
Association Common Area Can Be Foreclosed and Sold to a Third Party for Unpaid Property Tax
Our office has had two situations in the last six months where an association failed to pay property taxes on association common area, the tax department foreclosed, and a third-party bought the common area at the tax foreclosure sale. Fortunately in these cases it was not the association pool or clubhouse, but it could have been. For North Carolina associations – There is a statue in North Carolina that allows associations to apply for a tax exempt status for common area. Once approved the association does not owe property taxes on that common area going forward. The key is to make … Continue reading
Taylor Swift and Robert’s Rules?
What do Taylor Swift and Robert’s Rules of Order have in common? Likely not much. However, both were highlighted in the “Top Ten 2023 Outlook Stories” from The Presbyterian Outlook, the magazine of the Presbyterian Church (USA). “What Taylor Swift’s Eras Tour Taught Me about Church” made the list. So did “Who Was Robert and Why Do His Rules Rule?” If you’re curious, the list and full articles can be found at Top 10 Outlook Stories of 2023. Want to learn more about Robert’s Rules of Order and proper meeting procedure? Then check out my two most recent books! Both … Continue reading
HOA/Condo Op-Ed Article Published Today
I was asked by The Charlotte Observer and Raleigh News & Observer to respond to recent reporting looking at changing North Carolina’s HOA/condo laws. My article, “Caution: When NC HOA Laws Change, Property Values and More Are at Stake,” appears in both newspapers today. If you are a subscriber, links to both are below and the full op-ed follows. Caution: When NC HOA Laws Change, Property Values and More Are at Stake Living in a community where owners agree to abide by rules that enhance benefits for everyone requires balancing individual rights with neighbors. Legislators have historically balanced those effectively. Substantially increasing … Continue reading
What Is a Variance?
Last year I wrote a blog discussing the role of a Board of Adjustment and the types of cases they may hear, which can be found here. One of the land use cases that the Board of Adjustment in a municipality would see regularly would be a request for a variance. Variances are covered under NCGS § 160D of the North Carolina General Statues. Specifically: NCGS 160D-705(d) states: When unnecessary hardships would result from carrying out the strict letter of a zoning regulation, the board of adjustment shall vary any of the provisions of the zoning regulation upon a showing … Continue reading
Harmony Taylor Recognition
Law Firm Carolinas’ partner Harmony Taylor is on a roll! Harmony has been named a Fellow in CAI’s College of Community Association Lawyers. The College, which was created in 1994, recognizes excellence in the practice of community association law. Of the thousands of attorneys who work with homeowner and condominium associations in the US, there are fewer than 200 current CCAL Fellows. As a past national CCAL President, I can say without reservation that Harmony reflects the high standards of professionalism, professional involvement, and passion for community association law the CCAL designation was created to spotlight. Harmony has also been elected Chair of … Continue reading
Timing at Closing for Signing and Funding of Transaction
Closings in olden times (over 10 years ago and prior) was most typically that parties, buyers, sellers, agents, etc., would all attend a signing at a single scheduled date and time. In more recent years, and in the future I suspect, the needs and requests of parties have varied quite a bit more. Parties are remote, parties want to come to sign on separate days or times and this is most easily facilitated by Law Firm Carolinas in part or whole due to our experience in handling transactions throughout the entireties of North and South Carolina even in locations where … Continue reading
2024 Gift, Estate and Generation-Skipping Tax Exclusions
The unified lifetime general gift and estate exclusion, the generation-skipping gift and estate tax exclusion, and the annual gift tax exclusion are typically adjusted annually for inflation. On November 9, 2023, the IRS announced an increased exclusion for all three which will become effective on January 1, 2024. The annual gift tax exclusion will increase from $17,000 to $18,000 in 2024. This is the amount one can gift to a recipient during the year without filing a gift tax return and, therefore, without using any of their unified gift and estate tax exclusion. With gift splitting, married couples will be … Continue reading
Understanding Emergency Ex Parte Child Custody Claims
Child custody matters can be complex and emotionally charged. In some situations, immediate action may be required to protect the best interests of a child. When faced with emergencies, a legal avenue available to parents or guardians in North Carolina is the Emergency Ex Parte Child Custody Claim. What is an emergency ex parte child custody claim, when it can be filed, and how does the process work to help you understand your legal rights and options? What Is an Emergency Ex Parte Child Custody Claim? An Emergency Ex Parte Child Custody Claim is a legal request made to the … Continue reading
Freddie Mac Announced Increased Transparency for Condo Projects
Freddie Mac announced yesterday, December 6, 2023, that it would be implementing steps to increase transparency in condominium project certification and eligibility for loans. See the link to Freddie Mac’s announcement. Up to now, industry leaders have voiced concerns about the secretive nature of Freddie Mac’s determination of a condominium’s eligibility status—contending that its unavailable list of condominiums amounted to a secret blacklist. For prospective home buyers wanting to buy in a condominium, this has meant that there was less access to mortgages, sometimes causing serious problems because existing condominium owners, boards of directors, and community managers didn’t know that … Continue reading
Holiday Parties and Employer Liability
For many North Carolina and South Carolina businesses, the annual holiday party provides a festive, valuable opportunity to express their gratitude, reward company loyalty, and bolster goodwill amongst employees and, potentially, key customers, clients, and vendors. But with such an opportunity also comes potential downfalls or opportunities for employers to incur unwanted or intended liability. So how can a wise employer capitalize on the positives of holiday gatherings without becoming a Scrooge? By focusing on how and where liability may arise and planning for your festivities just as thoughtfully and strategically as you would when handling other business opportunities. … Continue reading
Adoption Is Great . . . Except for Some
Adoption, for most people, is a time of celebration. A time to welcome a child into their home and a time to expand their family. It is a wonderful avenue to establish and solidify rights to a child outside of a child custody proceeding. But what happens if a biological father, who would have wanted the child, did not know of a child’s existence prior to an adoption proceeding? The answer is, as it is in most cases, it depends. North Carolina adoption statutes set out the mechanism regarding how adoptions take place, who can adopt, and most importantly, whose … Continue reading
New Release: AIP Standard Code of Parliamentary Procedure, SECOND Edition
If your organization follows The Standard Code of Parliamentary Procedure (often referred to as “Sturgis”), or the AIP Standard Code of Parliamentary Procedure, or you simply want to learn more about parliamentary practices at meetings, there’s a new book to check out: the American Institute of Parliamentarians Standard Code of Parliamentary Procedure, Second Edition. Stay with me here for some necessary background– Originally by Alice Sturgis, The Standard Code of Parliamentary Procedure was first released in 1950 as a simpler alternative to the Robert’s Rules of Order of its time. The Standard Code had fewer motions, updated archaic terms, modernized … Continue reading