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NC H330
Bill
Status
7/7/2014
Primary Sponsor
Robert Bryan
Click for details
AI Summary
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Amends North Carolina's Planned Community Act to apply G.S. 47F-3-104 (Transfer of Special Declarant Rights) to all planned communities created before January 1, 1999, unless the articles of incorporation or declaration expressly provides otherwise.
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Defines "affiliate of declarant" as any person who succeeds to special declarant rights and controls, is controlled by, or is under common control with a declarant, including criteria based on ownership percentages, board control, and capital contributions.
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Establishes procedures for transferring special declarant rights through recorded instruments, with different liability rules depending on whether the successor is an affiliate of the declarant or acquires rights through foreclosure, tax sale, or judicial sale.
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Limits liability of non-affiliate successors to obligations arising from their exercise of special declarant rights, excluding misrepresentations, warranty obligations, third-party contracts, and fiduciary breaches of previous declarants.
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Allows successors acquiring property through foreclosure or judicial sale to request only specific special declarant rights in a recorded instrument, and permits such successors to declare intent to hold rights solely for transfer to another person without exercising them.
Legislative Description
Planned Community Act/Declarant Rights
Last Action
Ch. SL 2014-57
7/7/2014