NC H513

Clarifies that recording a satisfaction of a security instrument does not extinguish liability for the underlying obligation unless the satisfaction expressly states the obligation has been extinguished and the note has been cancelled.

Modifies transfer procedures for special declarant rights in condominiums by requiring transferees to execute transfer instruments and clarifying that foreclosure proceedings automatically include transfer of special declarant rights without requiring specific reference.

Establishes that transferor declarants remain liable for warranty obligations and obligations arising before transfer, with liability limited to obligations expressly imposed by statute or declaration for non-affiliate successors in foreclosure situations.

Allows successors acquiring property through foreclosure or judicial sale to request only specific special declarant rights, with the judgment or conveyance instrument specifying which rights transfer and when declarant control period terminates.

Adds provisions clarifying that successors to declarant rights are not subject to claims or obligations beyond those expressly arising under the condominium statute or declaration, and defines "assignment of declarant rights" to include any assignment by a declarant.