Service Members’ Right to Interest Reduction to 6%

Under the Servicemembers Civil relief act (SCRA), the maximum interest rate that may be charged on certain VA loans is 6 percent during the period of the servicemember’s qualifying military service.  Also established with the foregoing, the SCRA restricts foreclosures on obligations held or guaranteed by servicemembers, provides protections against default judgments, and permits early termination of certain leases, including motor vehicle leases. Under most circumstances, the loan holder, your loan servicer, will determine automatically whether the borrower might qualify for this interest rate limitation and apply any reduced rate. In the past several years this has not been an … Continue reading

Court of Appeals Confirm Vagueness and Ambiguity in Zoning Ordinance Will be Viewed in Favor of Free Use of Property

This week the North Carolina Court of Appeals issued a ruling in Frazier v. Town of Blowing Rock, 2022-NCCOA-782, that confirms the views of the Courts in this State that vague terms or ambiguity in language, in this case relating to a local zoning ordinance, will be viewed in favor of the free use of an owner’s property. In the community and association world (HOA and Condominiums) we have seen this line of decisions from the courts before as they deem vague restrictions or covenants in association governing documents as void and unenforceable for vagueness.  This holds true for local … Continue reading

Non-Foreign Affidavits / FIRPTA When the Seller Is a Foreign National

You may be asked to sign a non-foreign affidavit, also called a FIRPTA, if you are selling property.  It is one of the many documents that will be a part of your set of seller documents.  People can get a little confused or upset when they see language on the affidavit concerning a 10% or 15% IRS withholding.  The FIRPTA does not apply to everyone and is a common form to help the closing attorney confirm whether there will be an IRS withholding at closing.  It’s simple enough to follow the guidelines but I find it’s a bit better to … Continue reading

What are Accessory Dwelling Units, and How Do They Affect Planned Communities?

The housing market is continuously in flux. New housing products, designs, and concepts are constantly entering neighborhoods and forcing Americans to rethink what community living means and looks like. Accessory Dwelling Units (“ADU”) are nothing new. The concept has been around for some time. Think the mother-in-law suite built behind the principal structure or potentially an efficiency apartment built above a detached garage.  In Greensboro, NC, for example, ADUs are permitted in all residential zoning districts so long as they meet certain additional planning standards: Accessory Dwelling Units Unless otherwise expressly stated, all accessory dwelling units must meet the requirements that apply to principal … Continue reading

Law Firm Carolinas Named to Fast 50 List

Law Firm Carolinas has been named by the Triad Business Journal to its “Fast 50 List,” which consists of the 50 fastest growing businesses in the Triad. It is the firm’s third recognition on the Fast 50 list. Managing Partner Carole Albright points to several examples of the firm’s growth over the past three years, including the purchase of a larger Charlotte office, renovations in the Greensboro office, and the opening of several new offices, for six total—Greensboro, Charlotte, Raleigh, Wilmington, Columbia (SC), and Greenville (SC). Partner Jon Raymer accepted the firm’s Fast 50 recognition at the Business Journal’s recognition … Continue reading

Update—Delinquent Homeowners May Have Access to Funds to Pay HOA and Condo Liens

As I wrote a few months ago, South Carolina homeowners have access to federal funds that have been allocated to assist homeowners in financial distress as a result of the COVID-19 pandemic.  It has now been confirmed that the program will include paying debts associated with HOA or condominium assessments, late fees, interest, liens, and foreclosure-related costs.  As anticipated, the State of South Carolina has been awarded $144,650,807.00 by the U.S. Department of Treasury’s Homeowner Assistance Fund (HAF), which was established under Section 3206 of the American Rescue Plan Act of 2021.   What does that mean for an HOA … Continue reading

Remote Online Notarization Coming (Again)!

With the passage of NC House Bill 776, North Carolina joins 37 other states in adopting rigorous RON (Remote Online Notarization) policies. This brings the end to end security measures and accurate closing procedures that lenders and other industry stakeholders demand, while offering the convenience and safety customers desire. The process revolves around the software platform, one of the most common being Pavaso. This swiss-army knife solution combines the teleconferencing abilities of Zoom with document management and signing capabilities of Docusign and adds encryption and recordkeeping and identification verification. This special suite of tools works together to solve the hardest … Continue reading

NC Community Association Legislative Update – June 21, 2022

ADOPTED BILL HAS IMPORTANT HOA/CONDO FIXES AND CHANGES TO HOW CONDOS ARE CREATED Due to other more pressing issues, several important bills impacting community associations were not addressed by the General Assembly in 2021. Those proposals have seen quick action this week, been adopted, and sent to the Governor for signature. Senate Bill 278’s(“SB278”) important features include that it: (1) “rescues” many older associations from concerns about the Marketable Title Act due to appellate decisions in 2021, (2) makes clear the NC Condominium Act applies to older condos when pursuing unpaid assessments, and (3) changes how condominiums are created. (The … Continue reading

Tips on Filling Out the Fannie Mae/Freddie Mac Questionnaire

Effective early this year Fannie Mae and Freddie Mac, the two largest purchasers of residential real estate mortgages from lenders, started requiring information regarding the structural integrity and plans for addressing deferred maintenance for almost all condominium buildings. This is in direct response to the tragedy of the partial collapse of the Champlain Towers in Florida. Is the Association legally obligated to complete the questionnaire? Unless the governing documents of the Association require it (which is highly unlikely) the Association is not obligated to complete the questionnaire; however, not filling out the questionnaire will almost certainly result in 60-70% of … Continue reading

What is the Board of Adjustment?

The Board of Adjustment is a group of members that are appointed by a local government, such as a City or Town, pursuant to NCGS 160D-302, to “hear and decide all matters upon which it is required to pass under any statute or development regulation adopted under this Chapter.”  So what in the world does that mean?  Typically a Board of Adjustment hears appeals, variance requests, or requests for special use permits as required under state statute and any local development ordinance.   The Board is appropriately named as, when you think about it, they can adjust from the strict application … Continue reading

Do You or Owners Need Assistance Paying HOA/Condo Dues? – The NC Homeowner Assistance Fund May Help

Last year President Biden proposed and Congress adopted the American Rescue Plan, which was a $1.9 trillion coronavirus rescue package designed to speed America’s recovery from the Covid pandemic. Among the bill’s many proposals was almost $10 billion for states, territories and tribes to provide relief to vulnerable homeowners through a “Homeowner Assistance Fund.” Monies from the Homeowners Assistance Fund were not immediately available. Instead, each state had to draft a state-specific plan, submit it to the US government, and get the plan approved by the US Treasury. In each state, different sorts of relief were considered, such as mortgage … Continue reading

The Strange Case of Real Estate and Probate

One of the biggest talking points in estate planning and estate administration conferences is what assets do and do not pass via probate.  To answer the basic question of what probate is, which is a topic in and of itself, probate is the court-supervised procedure by which assets pass from a decedent to devisee in the case of testate decedents (those who die with a Will) or from decedent to intestate heirs in the case of intestate decedents (those who die without a Will).   The probate procedure in North Carolina, also sometimes referred to as estate administration, is outlined in … Continue reading

Throwing Shade—North Carolina / South Carolina Homeowner Right to Sunlight

Once upon a time there was a homeowner with a mountain cottage with a great view.  The homeowner lived for years on this quiet property with a fantastic view of the surrounding mountains.  Suddenly, a neighbor showed up and began building next door.  As part of construction, it became obvious that part of the new neighbor’s home would block the view of the first homeowner.  Although the first homeowner may not be happy about it, without some sort of guarantee that his view will remain unchanged, the first homeowner probably has no way to prevent the construction.  To avoid this … Continue reading

Improve Your Chances Of Winning Your Rezoning Case-Preparation Is Key

I served on the Greensboro Zoning Commission for six years, serving as Chair during my last year, and I lost count of the times that a rezoning application and presentation could have been aided by additional preparation by the applicant or by having a knowledgeable advocate who could persuasively make the case that rezoning a piece of property would provide its highest and best use. Applications can fail if those making the decision on a rezoning are not presented with sufficient information to answer their questions about whether a piece of property should be rezoned, whether that be through the … Continue reading

Law Firm Carolinas: New Shareholder, Partners, Offices and Lawyers

Law Firm Carolinas announces the following changes: Harmony Taylor, who is in the Charlotte office and practices community association (HOA and condo) law and civil litigation, has been named a Shareholder. Three attorneys have been named Partners: Joe Thompson, who practices residential and commercial real estate, and David Wilson, who practices North and South Carolina community association (HOA and condo) law, both from the Charlotte office; and Jon Raymer, who practices commercial and residential real estate, from the Greensboro office. There have also been several recent additions to the firm: Nancy Guyton and Hunt Harris have joined the Wilmington office. … Continue reading

Changes to Special Assessment Language in North Carolina Realtor Standard “Offer to Purchase and Contract”

As discussed in previous blogs (see What’s Special about Special Assessments?), HOA/condo special assessments are referenced in the North Carolina standard Offer to Purchase and Contract form. By way of background, the NC Bar Association and NC Association of Realtors® have “Joint Forms” used in residential real estate closings. The standard “Offer to Purchase and Contract” (Standard Form 2-T) is used in most any closing involving a Realtor®. Effective July 1, 2021, there are various changes to the Standard Offer to Purchase and Contract, including the following language regarding special assessments: While any of these provisions can be changed contractually … Continue reading

Frequent Asked Questions about Foreclosure Sales

More than ever, people are buying property through foreclosures.  Do you want to buy property at a foreclosure sale, but you have questions about the process?  If so, then this article is for you.  For a general explanation of the foreclosure sale process, take a look at this previous article.  However, some common but more specific questions that people have about the foreclosure sale process are: Where does the sale take place?  Well, by law the notice of sale must contain the location where the sale is going to be conducted. Most sales are noticed to be conducted on the … Continue reading

Real estate document preparation

Contracts and closing documents are a necessary part of any real estate transaction and there are countless resources on the internet that purport to be able to provide any number of them free or at a very low cost.  More often than not, however, the forms provided are not tailored to the party’s needs.  Oftentimes they omit important terms or language or are overbroad and put at increased risk the parties involved or getting the deal closed at all.  Since it is commonplace that real estate transactions do not always have brokers involved to provide preliminary guidance but the parties … Continue reading

Valuable New Resource on Drafting Community Association Governing Documents

The Community Associations Institute has many valuable resources for anyone who assists community associations. While these materials are often of most interest to professional community managers and HOA/condo owners, there are also many excellent publications for attorneys. A recent digital book, Guiding Principles for Community Association Governing Documents: A Resource for Lawyers, will be of interest to anyone who has to draft original association documents or amendments to those documents. This is no little brochure, but has excellent, detailed advice for getting the wording of documents right. The Task Force that compiled the recommendations was appointed by the College of … Continue reading

New NC Appellate Case: Williams v Reardon (Covenants and Real Property Marketable Title Act – Part 2)

The North Carolina Court of Appeals has once again determined that restrictive covenants are largely extinguished by operation of the Real Property Marketable Title Act (N.C. Gen. Stat. 47B-1 et seq.) if not included in the chain of title in the preceding thirty years. The decision can be found at C.E. Williams, III et al v. Reardon et al. (Unpublished). Our blog on last month’s Marketable Title Act decision can be found at New NC Appellate Case: C Investments 2, LLC v Auger (Covenants and Real Property Marketable Title Act). This decision leaves one additional case pending for decision in … Continue reading