Bill Text: NC H513 | 2015-2016 | Regular Session | Amended
Bill Title: Real Property/Technical Corrections
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2015-06-04 - Ch. SL 2015-56 [H513 Detail]
Download: North_Carolina-2015-H513-Amended.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2015
H 1
HOUSE BILL 513
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Short Title: Real Property/Technical Corrections. |
(Public) |
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Sponsors: |
Representatives Bryan and Stevens (Primary Sponsors). For a complete list of Sponsors, refer to the North Carolina General Assembly Web Site. |
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Referred to: |
Judiciary IV. |
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April 2, 2015
A BILL TO BE ENTITLED
AN ACT to make technical corrections and other conforming changes to the general statutes concerning real property.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 45‑36.10(c) reads as rewritten:
"(c) The Unless the satisfaction
expressly states that the underlying obligation secured by the security
instrument has been extinguished, the recording of a satisfaction of a
security instrument does not by itself extinguish any liability of a person for
payment or performance of the secured obligation."
SECTION 2. G.S. 47C‑3‑104 reads as rewritten:
"§ 47C‑3‑104. Transfer of special declarant rights.
(a) No special declarant right (G.S. 47C‑1‑103(23))
created or reserved under this chapter may be transferred except by an instrument
evidencing the transfer recorded in every county in which any portion of the
condominium is located. The Except for the transfer of declarant
rights pursuant to subsection (c) of this section, the instrument is not
effective unless executed by the transferee.
(b) Upon transfer of any special declarant right, the liability of a transferor declarant is as follows:
(1) A transferor is not relieved of any obligation or
liability arising before the transfer, including, but not limited to,
liability or obligations relating to warranties. transfer and remains
liable for warranty obligations imposed upon the transferor by this Chapter. Lack
of privity does not deprive any unit owner of standing to bring maintain
an action to enforce any obligation of the transferor.
(2) If the successor to any special declarant right is an affiliate of a declarant (G.S. 47C‑1‑103(1)), the transferor is jointly and severally liable with the successor for any obligation or liability of the successor which relates to the condominium.
(3) If a transferor retains any special declarant right, but transfers other special declarant rights to a successor who is not an affiliate of the declarant, the transferor is liable for any obligations or liabilities imposed on a declarant by this chapter or by the declaration relating to the retained special declarant rights and arising after the transfer.
(4) A transferor has no liability for any act or omission or any breach of a contractual or warranty obligation arising from the exercise of a special declarant right by a successor declarant who is not an affiliate of the transferor.
(c) Unless otherwise provided in a mortgage instrument
or instrument, deed of trust, or other agreement creating a
security interest, in case of foreclosure of a mortgage, security
interest, sale by a trustee under an agreement creating a security interest, tax
sale, judicial sale, sale by a trustee under a deed of trust, or sale
under Bankruptcy Code or receivership proceedings, of any units owned by a
declarant, or real estate in a condominium subject to development rights, or
real estate subject to development rights for a condominium, a person
acquiring title to all the real estate property being foreclosed
or sold, but only upon his request, the person's request in an
instrument recorded with the register of deeds in every county where any
portion of the condominium is located, succeeds to all special declarant
rights (G.S. 47C‑1‑103(23)) related to that real
estate the property held by that declarant, or only to any rights
reserved in the declaration and held by that declarant to maintain models,
sales offices and signs. declarant and requested by the person acquiring
title. The judgment or instrument conveying title shall provide for
transfer of only the special declarant rights requested. The mortgage, deed
of trust, tax lien, or other conveyance to be foreclosed under this subsection
shall not be required to contain specific reference to an assignment of special
declarant rights but shall be deemed to include the special declarant rights as
part of the right, title, and interest encumbered by the mortgage, deed of
trust, tax lien, or other conveyance.
(d) Upon foreclosure, tax sale, judicial sale, sale
by a trustee under a deed of trust, or sale under Bankruptcy Code or
receivership proceedings, of all units and other real estate in a condominium
owned by a declarant the declarant ceases to have any special declarant rights.foreclosure
of a security interest, sale by a trustee under an agreement creating a
security interest, tax sale, judicial sale, or sale under Bankruptcy Code or
receivership proceedings of all units and other real estate in a condominium
owned by a declarant, the declarant ceases to have any special declarant rights
and the period of declarant control (G.S. 47C‑3‑103(d)) terminates
unless either of the following applies:
(1) The judgment or instrument conveying title provides for transfer of all special declarant rights held by that declarant to a successor declarant.
(2) The declarant transferred special declarant rights related to the appointment of executive board members to another person pursuant to this section prior to the foreclosure or sale.
(e) The liabilities and obligations of persons who succeed to special declarant rights are as follows:
(1) A successor to any special declarant right who is
an affiliate of a declarant is subject to all obligations and liabilities
imposed on the transferor related to the condominium.by this Chapter
or by the declaration.
(2) A successor to any special declarant right,
other than a successor described in paragraphs (3) and (4) who is not an
affiliate of a declarant, is subject to all obligations and liabilities:Unless
otherwise specified by the declaration as to the holder of a mortgage
instrument, deed of trust, or other agreement creating a security interest, in
case of foreclosure of a security interest, sale by a trustee under an
agreement creating a security interest, tax sale, judicial sale, or sale under
Bankruptcy Code or receivership proceedings, a successor to any special
declarant right who is not an affiliate of a declarant, other than a successor
described in subdivision (3) or (4) of this subsection, is subject to the
obligations and liabilities expressly imposed by this Chapter or the declaration:
a. On a declarant which relate to his the
successor's exercise or nonexercise of special declarant rights; or
b. On his the declarant's transferor,
other than:than any of the following:
(i)1. Misrepresentations by the
transferor or any prior declarant;declarant.
(ii)2. Warranty obligations on improvements
made by the transferor or any previous declarant, or made before the
condominium was created;created.
(iii)3. Breach of any fiduciary obligation by
the transferor or any previous declarant or his the declarant's
appointees to the executive board; orboard.
(iv)4. Any liability or obligation imposed on
the transferor or any previous declarant as a result of the transferor's
acts or omissions after the transfer.
5. Obligations and liabilities arising out of contractual agreements between the transferor or any previous declarant and third parties other than those contained in the declaration.
(3) A successor to only a right reserved in the
declaration to maintain models, management offices, sales offices, and
signs advertising the condominium (G.S. 47C‑2‑115), if he
the successor is not an affiliate of a declarant, may not exercise
any other special declarant right, and is not subject to any liability or
obligation as a declarant, except the obligation to provide a public offering
statement, and any liability arising as a result thereof.
(4) A successor to all special declarant rights held by
his a transferor who is not an affiliate of that declarant and
who succeeded to those rights pursuant to a deed or other instrument of
conveyance in lieu of foreclosure or a judgment or instrument conveying
title to units under subsection (c), (c) of this section, may
declare his intention in a recorded instrument the intention to
hold those rights solely for transfer to another person. Thereafter, until
transferring all special declarant rights to any person acquiring title to any
unit owned by the successor, or until recording an instrument permitting
exercise of all those rights rights, that successor may not exercise
any of those rights other than the right held by his the
successor's transferor to control the executive board in accordance with
the provisions of G.S. 47C‑3‑103(d) for the duration of any
period of declarant control, and any attempted exercise of those rights is
void. So long as a successor declarant may does not have the
right to exercise special declarant rights under this subsection, he the
successor declarant is not subject to any liability or obligation as a
declarant other than liability for his the successor declarant's acts
and omissions under G.S. 47C‑3‑103(d).
(f) Nothing in this section subjects any successor to a special declarant right to any claims against, or other obligations of, a transferor declarant other than claims and obligations expressly arising under this Chapter or the declaration.
(g) For the purposes of this section, "assignment of declarant rights" shall include any assignment by the declarant of special declarant rights to a person, including, without limitation, an assignment pursuant to this section."
