GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION LAW 2022-12
SENATE BILL 278
AN ACT to conform the statute relating to reimbursement for expenditures made by spouses on joint property with current family law practice, as recommended by the family law section of the north carolina bar association, to require certain information to be included in declarations for condominiums prior to recordation, to clarify the applicability of the north carolina condominium act, and to clarify exemptions from the marketable title act.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 41‑61 reads as rewritten:
"§ 41‑61. Reimbursement for expenditures made on entireties property.
spouse holding property as tenants by the entirety is entitled to reimbursement
of expenditures made on the property, including payments on indebtedness
encumbering the property, while the tenancy by the entirety exists.In
the case of property held as tenants by the entirety, neither spouse is
entitled to reimbursement from the other for expenditures made with respect to
the property during the existence of the tenancy by the entirety, including
payments made for recurring expenses, improvements, and payments made on
indebtedness secured by a lien on the property.
(b) When the tenancy by the
entirety is converted to a tenancy in common by absolute divorce or otherwise,
responsibility for expenditures
for made with respect to the
property held as tenants in common is allocated as provided by the law
governing tenants in common, unless otherwise directed in a court order such
as in an equitable distribution proceeding.common.
(c) When the tenancy by the entirety is terminated by death, neither the surviving spouse nor the personal representative of the deceased spouse is entitled to reimbursement from the other for expenditures made with respect to the property during the existence of the tenancy by the entirety, including payments made for recurring expenses, improvements, and payments made on indebtedness secured by a lien on the property.
(d) Nothing in subsection (a), (b), or (c) of this section does any of the following:
(1) Applies in any proceeding for equitable distribution or constitutes any limitation on the power of the court in any equitable distribution proceeding.
(2) Renders unenforceable the terms of any otherwise valid and enforceable provisions in a premarital agreement, postmarital agreement, or promissory note given by one spouse to the other.
(3) Affects any otherwise valid and enforceable lien or judgment."
SECTION 2.(a) G.S. 47C‑2‑105 reads as rewritten:
"§ 47C‑2‑105. Contents of declaration.
(a) The declaration for a condominium must contain all of the following:
(5) A description, by reference to the plats or plans described in G.S. 47C‑2‑109, of the boundaries of each unit created by the declaration, including the unit's identifying number. A declaration may define a unit to include all or any portion of the airspace or subterranean space between two legally identifiable elevations, to include or exclude the surface of a legally described parcel of real property, to include or exclude airspace lying above and subterranean space lying below such surface, and to mean any specified combination of the foregoing, whether or not contiguous. A unit that is not specifically described by an upper limiting boundary with reference to established datum shall be deemed to include so much of the land and air above the unit as would be attributed to a noncondominium parcel of land under the common or statutory law applicable to such noncondominium parcel of land. A unit that is not specifically described by a lower limiting elevation boundary with reference to established datum shall be deemed to include so much of the land and air below the unit as would be attributed to a noncondominium parcel of land under the common or statutory law applicable to such noncondominium parcel of land.
SECTION 2.(b) G.S. 47C‑2‑101 reads as rewritten:
"§ 47C‑2‑101. Execution and recordation of declaration.
(b) A declaration or an
amendment to a declaration adding units to a condominium
must contain a
certificate executed by may not be recorded unless all structural
components and mechanical systems of all buildings containing or comprising any
units thereby created are substantially completed in accordance with building
design plans of an architect licensed under the provisions of Chapter 83A
of the General Statutes or an engineer registered under the provisions of
Chapter 89C of the General Statutes stating that the plans for such building
or buildings fully and accurately depict the structural components and
mechanical systems of all buildings containing or comprising any units thereby
created; Statutes, as evidenced by a recorded certificate of completion
executed by the architect or engineer; provided, however, that (i) such
requirement shall not apply to any unit or portion of a unit, the boundaries of
which comprise solely surface space, airspace, subterranean space, or any
specified combination thereof, as provided in G.S. 47C‑2‑105(a)(5).G.S. 47C‑2‑105(a)(5)
and (ii) nothing in this subsection shall require that the structural
components and mechanical systems of buildings be depicted on the plats or
plans described in G.S. 47C‑2‑109(b)(6)."
SECTION 2.(c) This section is effective when it becomes law and applies to declarations executed and recorded on or after that date.
SECTION 3.(a) G.S. 47C‑1‑102(a) reads as rewritten:
Chapter applies to all condominiums created within this State after October 1,
1986. In addition, the following sections apply to all condominiums created
in this State on or before October 1, 1986, notwithstanding any conflicting
provisions in the articles of incorporation, the declaration, or the bylaws and
notwithstanding any references in those documents to Chapter 47A of the General
Statutes: G.S. 47C‑1‑105 (Separate Titles and Taxation),
47C‑1‑106 (Applicability of Local Ordinances, Regulations, and
Building Codes), 47C‑1‑107 (Eminent Domain), 47C‑2‑103
(Construction and Validity of Declaration and Bylaws), 47C‑2‑104
(Description of Units), 47C‑2‑121 (Merger or Consolidation of
Condominiums), 47C‑3‑102(a)(1) through (6) and (11) through
(16)(Powers of Unit Owners' Association), 47C‑3‑103 (Executive
board members and officers), 47C‑3‑107.1 (Procedures for fines and
suspension of condominium privileges or services), 47C‑3‑108
(Meetings), 47C‑3‑111 (Tort and Contract Liability), 47C‑3‑112
(Conveyance or Encumbrance of Common Elements), 47C‑3‑116 (Lien for
Assessments), 47C‑3‑118 (Association Records), 47C‑3‑121
(American and State flags and political sign displays), and 47C‑4‑117
(Effect of Violation on Rights of Action; Attorney's
Fees), and G.S. 47C‑1‑103
(Definitions), to the extent necessary in construing any of those sections,
apply to all condominiums created in this State on or before October 1, 1986,
unless the declaration expressly provides to the contrary. Those Fees). These
sections apply only with respect to events and circumstances occurring
after October 1, 1986, and do not invalidate existing provisions of the
declarations, bylaws, or plats or plans of those condominiums.1986. G.S. 47C‑1‑103
(Definitions) also applies to all condominiums created in this State on or
before October 1, 1986, to the extent necessary in construing any of the
sections referenced in this subsection."
SECTION 3.(b) G.S. 47A‑2 reads as rewritten:
Unit ownership may be created by an owner or the co‑owners of a building by an express declaration of their intention to submit such property to the provisions of the Article, which declaration shall be recorded in the office of the register of deeds of the county in which the property is situated. Notwithstanding the formation of a condominium by a declaration pursuant to this section and specifically referencing this Chapter, those provisions of Chapter 47C of the General Statutes that are made applicable to condominiums formed on or before October 1, 1986, pursuant to G.S. 47C‑1‑102 shall apply and are not in conflict with this Chapter."
SECTION 4.(a) G.S. 47B‑3 reads as rewritten:
Such marketable record title shall not affect or extinguish the following rights:
(14) Notwithstanding anything in this section to the contrary, provisions contained in any declaration of covenants that are applicable to any of the following:
a. A condominium created under Chapter 47A or 47C of the General Statutes of North Carolina.
b. A cooperative, as defined in G.S. 47F‑1‑103(8).
c. A planned community, other than a planned community in which all lots are restricted exclusively to nonresidential purposes, whenever created, to which any of the provisions of Chapter 47F of the General Statutes of North Carolina apply; provided, however, that if such planned community was created prior to January 1, 1999, this exemption shall not apply unless it is governed by an owners' association in existence as of July 1, 2022."
SECTION 4.(b) This section becomes effective July 1, 2022.
SECTION 5. Except as otherwise provided, this act is effective when it becomes law.
In the General Assembly read three times and ratified this the 22nd day of June, 2022.
s/ Phil Berger
President Pro Tempore of the Senate
s/ Destin Hall
Presiding Officer of the House of Representatives
s/ Roy Cooper
Approved 3:31 p.m. this 29th day of June, 2022