NC S312

Claims of lien must be served on property owners by certified mail with a certificate of service attached to the filing, following service procedures under G.S. 1A-1, Rule 4(j).

Lien notices must contain a bold, all-caps statement on the first page warning owners that the HOA may proceed with foreclosure if the lien is not paid.

Associations may foreclose on unpaid assessments through nonjudicial power of sale after 90 days of nonpayment, but liens for fines, interest on fines, or related attorney fees may only be enforced through judicial foreclosure.

If an owner does not contest the debt within 15 days of notice, combined attorney fees and trustee commission cannot exceed $1,200, excluding other costs and expenses.

The law applies to all claims of lien filed on or after the effective date and applies to both condominium units (G.S. 47C-3-116) and planned community lots (G.S. 47F-3-116).