[Durham INC] Fw: Revised Assessment Lien Statute / Charlotte Meetings Seminar Deadline

Thu Aug 15 11:59:44 EDT 2013

Residents and board members living in a planned community (HOA) may be interested in this posting (forwarded with permission) regarding recent changes to the Planned Community Act from my friend (and attorney) Jim Slaughter.

Others may consider passing this one by.

Mike Shiflett

----- Original Message ----- 
From: Jim Slaughter 
To: Jim Slaughter 
Sent: Thursday, August 15, 2013 9:05 AM
Subject: Revised Assessment Lien Statute / Charlotte Meetings Seminar Deadline

Last week I forwarded a discussion of the new HOA/Condo Prelitigation Mediation Law.  The other significant community association legislation adopted in North Carolina this year was HB 331 ("HOAs/Uniform Lien Procedure."), which takes effect October 1, 2013.  Here's a link to the new law: http://www.ncga.state.nc.us/Sessions/2013/Bills/House/PDF/H331v5.pdf.   

The changes to NCGS 47C-3-116 (NC Condominium Act) and 47F-3-116 (NC Planned Community Act) may appear to be a complete rewrite of the "Lien for Assessments" sections, but most are technical changes.  That is, much of the current wording is stricken, but most everything is then put back in through revised language.  There were several purposes behind the bill.  Although HOA/condo foreclosures are much less common than bank foreclosures on mortgages, differences in the process have long concerned title insurance companies and real estate lawyers.  For instance, did the lack of a third party trustee unfairly taint the process, or did the previous language even pass clear title in the rare instance of an HOA/condo foreclosure sale?  Also, due to numerous amendments to the statute over the years, the wording was disorganized, confusing, and even conflicted with itself.  The new language reorganizes the statute in logical order and groups related provisions.  Not only is the process now more defensible going forward, but the law addresses past concerns by providing that HOA/condo nonjudicial foreclosures prior to October 1, 2013, are validated unless an action to set aside the foreclosure is commenced by October 1, 2013, or within one year after the date of sale, whichever is later.

While details of the rewritten statute will mostly be of concern to collection attorneys, here's a listing of some of the changes:

1.      Clarifies the sums secured by the claim of lien, including amounts due post-filing

2.      Clarifies that the 15 day attorneys' fees letter does not need to be mailed to a vacant unit or location with no postal address, such as an empty lot or boat slip

3.      Clarifies that the 15 day pre-lien notice does not need to be mailed to a vacant unit or location with no postal address, such as an empty lot or boat slip

4.      More closely aligns the association foreclosure process with Chapter 45 power of sale foreclosures

5.      Provides for the appointment of a trustee to conduct a nonjudicial foreclosure, which association counsel may serve as if the owner does not contest the obligation to pay or the validity, enforcement or foreclosure of the claim of lien

6.      Provides owners with rights and remedies to ensure the timely satisfaction and cancellation of claims of lien when they are paid in full

7.      Removes disincentives for an association to discuss or approve installment payments

8.      Clarifies that attorneys' fees may be incurred in the accepting and processing of installment payment plans

9.      Clarifies the right of the association to bid at foreclosure sale

10.   Clarifies "acquisition of title" with regards to bank foreclosures

11.   Clarifies that prevailing party in a judicial foreclosure or lawsuit is entitled to costs and reasonable attorneys' fees (addressing issues from the Willow Bend Homeowners Association, Inc. v. Robinson Court of Appeals case)

If you have specific questions about the new provisions, feel free to call any of our lawyers. 

CHARLOTTE SEMINAR DEADLINE

The program I'm giving for the NC Chapter of the Community Associations Institute on "Running a Darn Good Meeting" is this coming Tuesday, August 20.  The session will look at using parliamentary procedure and Robert's Rules of Order to make HOA/condo board meetings and annual membership meetings shorter and to keep them legal, and will include information on which motions should be used, voting, proxies, budget ratification, and handling disruptive members.  The program is from 5-7 pm at The Employers Association, 3020 West Arrowood Road, in Charlotte.  

If you are interested, the program flyer and registration is at http://www.cai-nc.org/HOA/assn10363/documents/Aug%2020%20Flyer-jhs.pdf (or call CAI-NC at 919-929-9312).  Pre-registration is required.  

If you are unable to attend, you may find either of my two recently released books on running effective meetings of interest.  The Complete Idiot's Guide to Parliamentary Procedure Fast-Track is short, to-the-point, and focused on smaller meetings, such as HOA/condo boards and committees, and provides details on the most used motions, appropriate informal procedures for smaller boards, and general advice for shortening meetings.  Notes and Comments on 'Robert's Rules,' Fourth Edition is a user's guide to the new 716 page edition of Robert's Rules of Order Newly Revised (11th Edition) and is designed for more procedurally complicated meetings, such as annual membership meetings.  Notes and Comments uses a question-and-answer format to cover the most misused and asked-about provisions of Robert's Rules.  

Jim

_______________________________________________________ 
JAMES H. SLAUGHTER
ROSSABI BLACK SLAUGHTER, PA 
ATTORNEYS AT LAW

      Greensboro Offices:

      P.O. Box 41027

      Greensboro, NC  27404

      336-378-1899
     Charlotte Offices:
      301 McCullough Drive, 4th Floor
      Charlotte, NC  28262
      704-970-1593

http://about.me/jim.slaughter   
Law Firm Site: www.lawfirmrbs.com 
Parliamentary Procedure Site: www.jimslaughter.com

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