A property survey is typically obtained by a prospective purchaser of real property, either with or without a home currently constructed on it, during the due diligence period. The surveyor will provide a sketch of the land that includes its legal boundaries, any discrepancies identified that may be present in public record documents and one or more of a number of items of note that could be present in connection with any specific piece of real estate (location of building(s), right(s) of way, easement(s), encroachment(s), monument(s), setback lines, any possible violation of applicable covenants, and many others). There is typically … Continue reading
Collection Minefields & Helpful Tips
I recently spoke on the topic of Collection Minefields at the last two NC Community Association Institute (CAI) Law Days. Both sessions were very well attended and the participants came with many great and pointed questions. That tells me that both Board members and mangers are acutely aware that collecting unpaid assessments is a vital part of running a successful community association. Unfortunately, while we would hope all owners would dutifully pay their assessments, very few associations are lucky enough to escape the reality of having pursue their neighbors for delinquencies. There are many different types of minefields that can … Continue reading
Top Declaration Amendments for an HOA or Condo in North Carolina & South Carolina – Part Two
(Blog co-authored by Harmony Taylor & David Wilson. This is a continuation of the earlier blog, “Top Amendments for an HOA or Condo in North Carolina or South Carolina.”) We are often asked by board members for HOA and condominium associations to review their community’s documents and “update” them or “make them more modern.” While there is no one-size fits all solution for any community association, we have noticed that some amendments are a good idea for most communities. Over the next few articles, David Wilson and Harmony Taylor will be exploring some of the amendments that we frequently recommend … Continue reading
Top Declaration Amendments for an HOA or Condo in North Carolina & South Carolina – Part Two
(Blog co-authored by David Wilson & Harmony Taylor. This is a continuation of the earlier blog, “Top Amendments for an HOA or Condo in North Carolina or South Carolina.”) We are often asked by board members for HOA and condominium associations to review their community’s documents and “update” them or “make them more modern.” While there is no one-size fits all solution for any community association, we have noticed that some amendments are a good idea for most communities. Over the next few articles, David Wilson and Harmony Taylor will be exploring some of the amendments that we frequently recommend … Continue reading
Community Association Foreclosures and Squatters
Despite what some may believe, association boards almost never want to foreclose on a condo, townhome or single family home in their community. When they do go through the time and expense of foreclosing, and are forced to purchase the property through foreclosure, it is incredibly frustrating to go to change the locks on a home only to find it already occupied by a stranger. It can appear that someone- not the former owner- showed up in the dead of night, gained access through some means, and moved in- even going so far as to fully furnish the home, hook … Continue reading
Jim Slaughter Recognized for Pro Bono Service
Attorney Jim Slaughter was recently recognized by the Greensboro Bar Association for his pro bono work by being named to the Herb Falk Society. The Herb Falk Society honors Bar members who have performed 75 hours or more of pro bono service hours during the year, which includes free or reduced legal services to clients and activities to improve the legal profession. This is Jim’s 7th year of recognition. His is pictured here with Judge Teresa Vincent, 2019 President of the Greensboro Bar Association.
Annual Report Reminder
Entities conducting business within the State of North Carolina are required, with only a few exceptions, to file an Annual Report with the North Carolina Secretary of State every year by April 15th and to pay the accompanying fee with their submission. It is an easy task to overlook, but one that business owners or officers should take care not to miss! While an entity caught sleeping will not likely be dissolved immediately, failure to file Annual Reports will eventually result in its administrative dissolution, thus leaving individual owners exposed to personal liability for debts and other wrongs that might … Continue reading
Change in the Law – North Carolina Year’s Allowance
As of January 2019 the Year’s Allowance in North Carolina has been adjusted. For a surviving spouse there is an increase in the statutory allowance from $30,000.00 to $60,000.00. The Spousal Allowance is intended as a type of stop-gap; a means of meeting the immediate needs of the surviving spouse when he or she is widowed and presumably assets may be tied up during the estate administration. The $60,000.00 Spousal Allowance is authorized by statute to provide for necessities. It may only be paid from the personal property of the Decedent and not from real property. With the exception of … Continue reading
Don’t Screw Up Your Architectural Committee and Approval Process
In a decision issued today (March 19, 2019), the North Carolina Court of Appeals examined the issue of proper architectural committees and their decisions. Makar vs. Mimosa Bay Homeowners Association is an “unpublished” opinion from the NC Court of Appeals. That means that the decision is not controlling legal authority and should not be cited in other cases. However, even unpublished opinions give a sense of the Court’s thinking as to specific issues and how subsequent courts may rule. In short, the decision in Makar follows other recent appellate decisions that associations should act properly, follow corporate formalities, and do … Continue reading
Committee of the Whole
“Committee of the Whole” is a type of committee described in Robert’s Rules of Order Newly Revised (12th Edition)(see RONR Section 52). While not commonly used, some large assemblies and legislative bodies follow the process. Without question, the procedure is an odd one. The normal presiding officer leaves the chair and a chairman of the committee is appointed. Members can speak in debate on the main question or amendment as often as they can get the floor. Only certain motions are in order. The committee is intended to adopt a report to be made to the assembly and then votes … Continue reading
Community Association Law Day 2019 – Charlotte, NC
Law Day is one of the NC Community Associations Institute’s most popular programs. Attendees include HOA/condo board members, community leaders, and community managers. Speakers include many of the best community association professionals in the state. Law Firm Carolinas attorneys will be presenting on the following topics at the 2019 Community Association Law Day on Friday, March 22: The cost is $80 for CAI-NC members, $105 for others, and includes free parking, light breakfast, lunch, and access to all speakers’ slides. Preregistration is required. The full schedule and registration info can be found at the North Carolina CAI Community Calendar page.
Update on Changes to Overtime Requirements Under Fair Labor Standards Act
The Fair Labor Standards Act (commonly referred to as the FLSA) applies to most employers throughout our country and, indirectly, their employees. The FLSA sets the floor or minimum wage that must be paid to employees and dictates when employers are required to pay overtime to their employees. An exception to such overtime requirement has long existed for administrative employees paid a set salary in excess of $23,600.00 per year. In 2016, the Department of Labor announced changes to the minimum salary level, which changes would have raised the threshold to $47,476.00 per year. Shortly before the changes were to … Continue reading
Marital Rights in North Carolina Real Estate
Occasionally sellers of real property, or borrowers in refinance transactions, are confused upon being informed their spouse is required to sign certain documents at closing. It’s not uncommon for closing attorneys to receive inquiries wondering “why do they need to sign? They’ve never had anything to do with this property!” While it’s certainly possible to purchase and hold property individually, a married person generally needs to involve their spouse in some manner when selling or refinancing North Carolina real estate. The concept of marital rights in real property descended from English common law principles designed to benefit the surviving spouse … Continue reading
New Year, New Taxes: How the New Year Could Affect North Carolina Property Taxes
The beginning of the year is often filled with thoughts of the future, personal resolutions you want to keep, and the hope of spring being just around the corner. The last thing you want to think about is property taxes. However, in many North Carolina counties, the New Year may also bring with it higher property taxes. In North Carolina, real property taxes are based on the value of real property on January 1st of that year. Theoretically, that means that the value of your home or real property as it stands on January 1st is the value on which … Continue reading
Buying Property at Foreclosure Sales
So, are you thinking of purchasing property at a foreclosure sale? Perhaps you think that you can make a lot of money buying a house in foreclosure, and then flipping it. Certainly some people do very well doing just that. HOWEVER if it looks too good to be true, then it likely is. Before you bid in a foreclosure sale, there are several things to consider. First, understand how foreclosure sales in North Carolina work. The foreclosure sale is going to be set for a specific time between 10 am and 4 pm on a day the courthouse is open. … Continue reading
Does Your Board Meeting Need a Parliamentarian?
In large association membership meetings or conventions, it is common to find someone serving as parliamentarian (whether a member or outside credentialed professional). A question I’m often asked, though, is “Does our board meeting need a parliamentarians”? (For purposes of full disclosure, I’m an attorney, Certified Professional Parliamentarian, Professional Registered Parliamentarian, past President of the American College of Parliamentary Lawyers, and author of two books on meeting procedure.) A parliamentarian is simply an adviser to the presiding officer and other officers, committees and members on matters of meeting procedure. There is no one-size-fits-all answer, but: As a takeaway, here are … Continue reading
Inheriting Real Property and No Deed to Show For It.
When you find out that you have inherited real property, a reasonable assumption might be that a deed is forthcoming. After all, when we buy real property we get a deed to show that we own it. However, with inherited real property in North Carolina, there is no new deed. It may seem counter-intuitive but it is the practice. The reason for this is because real property passes immediately upon death in North Carolina. Therefore, you owned the property as soon as the person who left it to you died. Of course, if the person who died has a lot … Continue reading
What an HOA “Transfer Fee” Is—And What It Is Not
The term “transfer fee” is used in North Carolina incorrectly all the time. Misuse is common even among professionals. Recently I’ve heard both real estate brokers and real estate attorneys refer to items as “transfer fees” that were not. Since there is a statute that regulates and can even prohibit improper transfer fees, it’s important to use the correct term. Let’s start with a bit of background. Since 2010 North Carolina state statute has defined a transfer fee as a “fee or charge payable upon the transfer of an interest in real property . . . regardless of whether the … Continue reading
E-recording in North and South Carolina
E-recording of legal documents in local registries, while not exactly new (first one recorded in 2000 in Salt Lake County, Utah), has become much more widespread in use in recent years both by jurisdictions accepting this method of recording as well as local attorneys utilizing the same. There are currently 1856 jurisdictions accepting e-recordings and growing. North Carolina and South Carolina each participate though not at 100% for either state. North Carolina has 81 out of 100 counties currently with ability to e-record and South Carolina has 19 out of 46. The participating counties are mostly skewed to the more … Continue reading
Planning for the Future of Your Community Through Reserve Funding
As properties within homeowners and condominium associations age, inevitably maintenance expenses will begin to pile up. Roofs will need to be replaced, deteriorating roads will need to be repaired, and siding may need to be replaced. These are examples of major expenses that do not occur every day, but can often otherwise be anticipated. Planning ahead for these expenditures can be key to the financial health of your association. So how do homeowners and condominium associations pay for these major projects? One method is through reserve funding. This is an amount of the collected assessments that are set aside to … Continue reading