A BILL TO BE ENTITLED
AN ACT to make various changes to the statutes governing condominium associations.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 47C‑2‑109 reads as rewritten:
"§ 47C‑2‑109.  Plats and plans.
(a)	The declarant shall file with the register of deeds in each county where the condominium is located the condominium's plat or plan prepared in accordance with this section. The plat or plan shall be considered a part of the declaration but shall be recorded separately, and the declaration shall refer by number to the file where such plat or plan is recorded.
(b)	Each plat or plan or combination thereof must show all of the following:
(1)	The name and a survey or general schematic map of the entire condominium.
(2)	The location and dimensions of all real estate not subject to development rights or subject only to the development right to withdraw and the location and dimensions of all existing improvements within that real estate.
(3)	The location and dimensions of any real estate subject to development rights, labeled to identify the rights applicable to each parcel.
(4)	The extent of any encroachments by or upon any portion of the condominium.
(5)	The location and dimensions of all easements having specific location and dimensions and serving or burdening any portion of the condominium.
(6)	The verified statement 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 certifying that such plats or plans fully and accurately depict (i) the locations and dimensions of the vertical boundaries of each unit, to the extent those boundaries lie within or coincide with the boundaries of the building in which the unit is located, (ii) the location of any horizontal unit boundaries, with reference to established datum, and (iii) an identifying number for each unit.
(6a)	The certificate by a registered land surveyor licensed under the provisions of Chapter 89C of the General Statutes stating that the plats or plans accurately depict the legal boundaries and the physical location of the units and other improvements relative to those boundaries.
(7)	The locations and dimensions of limited common elements; however, parking spaces and the limited common elements described in subsections 47C‑2‑102(2) and (4) need not be shown, except for decks, stoops, porches, balconies, and patios.
(8)	A legally sufficient description of any real estate in which the unit owners will own only an estate for years, labeled as "leasehold real estate."
(9)	The distance between noncontiguous parcels of real estate comprising the condominium.
(10)	Any unit in which the declarant has reserved the right to create additional units or common elements.
(c)	A plat may also show the intended location and dimensions of any contemplated improvement to be constructed anywhere within the condominium. Any contemplated improvement shown must be labeled either "MUST BE BUILT" or "NEED NOT BE BUILT".
(d)	Upon exercising any development right, the declarant shall record either new plats and plans necessary to conform to the requirements of subsections (a), (b), and (c) or new certifications of plats and plans previously recorded if those plats and plans otherwise conform to the requirements of those subsections.
(e)	In order to be recorded, plats or plans filed shall meet the following requirements:
(1)	Be reproducible plats or plans on cloth, linen, film, or other permanent material and be submitted in that form.
(2)	Have an outside marginal size of not more than 21 inches by 30 inches nor less than eight and one‑half inches by 11 inches, including one and one‑half inches for binding on the left margin and a one‑half inch border on each of the other sides. Where size of the buildings or suitable scale to assure legibility require, plats or plans may be placed on two or more sheets with appropriate match lines.
(f)	The fee for recording each plat or plan sheet submitted shall be as prescribed by G.S. 161‑10(a)(3)."
SECTION 2.  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:
(1)	The name of the condominium, which must include the word "condominium" or be followed by the words "a condominium", and the name of the association.
(2)	The name of every county in which any part of the condominium is situated.
(3)	A legally sufficient description of the real estate included in the condominium.
(4)	A statement of the maximum number of units which the declarant reserves the right to create.
(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.
(6)	A description of any limited common elements, other than those specified in subsections 47C‑2‑102(2) and (4), as provided in G.S. 47C‑2‑109(b)(7).
(7)	A description of any real estate (except real estate subject to development rights) which may be allocated subsequently as limited common elements, other than limited common elements specified in subsections 47C‑2‑102(2) and (4), together with a statement that they may be so allocated.
(8)	A description of any development rights and other special declarant rights reserved by the declarant, together with a legally sufficient description of the real estate to which each of those rights applies, and a time limit within or date by which each of those rights must be exercised; provided, however, that if no time limit or date is specified for the exercise of any development right or other special declarant right is specified in the declaration, the time limit for the exercise of that right shall be seven years from the date the declaration was recorded. Notwithstanding the foregoing, if the declaration so provides, the unit owners of units to which at least sixty‑seven percent (67%) of the votes in the association are allocated, exclusive of any votes appurtenant to any unit owned by the declarant, may consent to an extension, not exceeding 10 years from the expiration of any time limit for the exercise of any development right or special declarant right as specified in the declaration. An extension of a development right or special declarant right must occur within one year prior to the date upon which the time limit would otherwise have expired.
(9)	If any development right may be exercised with respect to different parcels of real estate at different times, a statement to that effect, together with (i) either a statement fixing the boundaries of those portions and regulating the order in which those portions may be subjected to the exercise of each development right or a statement that no assurances are made in those regards, and (ii) a statement as to whether, if any development right is exercised in any portion of the real estate subject to that development right, that development right must be exercised in all or in any other portion of the remainder of that real estate.
(10)	Any other conditions or limitations under which the rights described in paragraph (8) may be exercised or will lapse.
(11)	An allocation to each unit of the allocated interests in the manner described in G.S. 47C‑2‑107.
(12)	Any restrictions on use, occupancy, or alienation of the units.
(13)	The recording data for recorded easements and licenses appurtenant to or included in the condominium or to which any portion of the condominium is or may become subject by virtue of a reservation in the declaration.
(14)	All matters required by G.S. 47C‑2‑106, 47C‑2‑107, 47C‑2‑108, 47C‑2‑109, 47C‑2‑115, 47C‑2‑116, and 47C‑3‑103(d).
(b)	The declaration may contain any other matters the declarant deems appropriate."
SECTION 3.(a)  G.S. 47C‑2‑117 reads as rewritten:
"§ 47C‑2‑117.  Amendment of declaration.
(a)	Except in cases of amendments that may be executed by a declarant under G.S. 47C‑2‑109(d) or 47C‑2‑110, the association under G.S. 47C‑1‑107, 47C‑1‑106(d), 47C‑2‑112(a), or 47C‑2‑113, or certain unit owners under G.S. 47C‑2‑108(b), 47C‑2‑112(a), 47C‑2‑113(b), or 47C‑2‑118(b), and except as limited by subsection (d), the declaration may be amended only by affirmative vote of or a written agreement signed by, unit owners of units to which at least sixty‑seven percent (67%) of the votes in the association are allocated or any larger majority the declaration specifies. The declaration may specify a smaller number only if all of the units are restricted exclusively to nonresidential use.
(b)	No action to challenge the validity of an amendment adopted by the association pursuant to this section may be brought more than one year after the amendment is recorded.
(c)	Every amendment to the declaration must be recorded in every county in which any portion of the condominium is located and is effective only upon recordation. An amendment shall be indexed in the Grantee's index in the name of the condominium and the association and in the Grantor's index in the name of the parties executing the amendment.
(d)	Except to the extent expressly permitted or required by other provisions of this Chapter, no amendment may create or increase special declarant rights, increase the number of units, or change the boundaries of any unit, the allocated interest of a unit, or the uses to which any unit is restricted, in the absence of unanimous consent of the unit owners.
(e)	Amendments to the declaration required by this Chapter to be recorded by the association shall be prepared, executed, recorded, and certified on behalf of the association by any officer of the association designated for that purpose or, in the absence of designation, by the president of the association.
(f)	The provisions of this Article and of condominium instruments recorded pursuant thereto shall be liberally construed in favor of the valid establishment of a condominium with respect to the submitted property. Except as otherwise provided in the declaration or explicitly prohibited by this Chapter, if any amendment to the declaration is necessary in the judgment of the executive board, then the executive board may, at its discretion, seek approval to amend the declaration as provided in subsection (a) of this section for any of the following purposes:
(1)	To cure any ambiguity, to establish marketable title to units, or to correct or supplement any provision of the declaration, including plats or plans, that is defective, missing, or inconsistent with any other provision of the declaration or with this Chapter.
(2)	To conform to the requirements of any agency or entity that has established national or regional standards with respect to loans secured by mortgages or deeds of trust on units in condominium projects, such as the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation.
(3)	To comply with any statute, regulation, code, or ordinance which may be applicable to the condominium or association.
(4)	To make a reasonable accommodation or permit a reasonable modification in favor of persons with disabilities, as may be defined by federal or State laws or regulations applicable to the association or its employees, unit owners, residents, or tenants.
Any amendment recorded pursuant to this subsection in the office of the register of deeds in the county or counties where the condominium is located shall operate as correction of the declaration being corrected that relates back to, and is effective as of, the date the declaration being corrected was originally recorded in the office of the register of deeds, with the same effect as if the declaration were correct when the declaration was first recorded."
SECTION 3.(b)  Article 2 of Chapter 47C of the General Statutes is amended by adding a new section to read:
"§ 47C‑2‑117.1.  Judicial reformation of declaration.
(a)	A unit owners' association may petition the clerk of superior court in the county where the condominium or the greater part thereof is located to reform the condominium instruments to resolve ambiguities, errors, or inconsistencies in the condominium instruments that are the source of legal and other disputes pertaining to the legal rights and responsibilities of the unit owners' association or individual unit owners. The condominium instruments may also be reformed to correct scrivener's errors, including incorrectly identifying the unit owners' association, incorrectly identifying an entity other than the unit owners' association, or errors arising from oversight or from an inadvertent omission or mathematical mistake. 
Upon petition and hearing pursuant to this section, the clerk of superior court shall have jurisdiction over matters set forth in G.S. 47C‑2‑117(f) regarding ownership of marketable title of the common elements or units and may (i) reform, in whole or in part, any provision of the condominium instruments and (ii) correct mistakes or any other error in the condominium instruments that may exist with respect to the declaration for any other purpose set forth in G.S. 47C‑2‑117.1(f).
(b)	A petition filed by the unit owners' association with the court setting forth any inconsistency or error made in the condominium instruments, or the necessity for any change therein, shall be deemed sufficient basis for the reformation, in whole or in part, of the condominium instruments, provided that all of the following requirements have been met:
(1)	The unit owners' association has made at least three good‑faith attempts to convene a duly called meeting of the unit owners' association to present for consideration amendments to the condominium instruments for the reasons specified in the petition, and where the attempts to convene a duly called meeting have been unsuccessful as evidenced by an affidavit verified by oath of the principal officer of the unit owners' association.
(2)	Where the declarant of the condominium still owns a unit or continues to have any special declarant rights in the condominium, the declarant has joined in the petition of the unit owners' association.
(3)	A copy of the petition has been sent at least 30 days before the petition is filed, as evidenced by an affidavit verified by oath of the principal officer of the unit owners' association, to all unit owners and all beneficiaries of a deed of trust or mortgagees of record for a unit in the condominium.
(4)	The petition provides sufficient notice to a recipient of (i) the right to object or dispute the petition, (ii) the 30‑day time limit for submitting a written objection or dispute, and (iii) the addresses and facsimile numbers of the executive board and the authorized attorney.
(5)	No written objection or dispute of the petition is received within 45 days from the date the last person to be served was served with the petition as evidenced by an affidavit verified by oath of the principal officer of the unit owners' association.
(c)	Each person served with the petition that wishes to object to or dispute the petition must do so in writing sent or delivered to the executive board within 30 days after the notice of the petition is provided to that person or entity. In complying with any requirement for objecting to or disputing the petition, the written objection or dispute must be addressed to the executive board and delivered by at least one of the following methods:
(1)	Delivering a copy to the executive board by handing it to a member of the executive board or by leaving it at the executive board's office with a member of the executive board or a managing employee of the unit owners' association.
(2)	Mailing a copy to the authorized attorney's mailing address provided in the notice of intent.
(3)	Sending a copy by facsimile to the authorized attorney's facsimile number provided in the notice of intent, as evidenced by a facsimile receipt confirmation.
(d)	Any unit owner or beneficiary of a deed of trust or mortgagee of a condominium unit in the condominium objecting or disputing the petition shall have standing to participate in the reformation proceedings before the clerk of superior court. No reformation pursuant to this section shall affect the rights, priority of the lien, or otherwise materially impair or affect any condominium unit as collateral for a deed of trust or mortgage, or affect a beneficiary of a deed of trust or mortgagee's right to foreclose on a condominium unit as collateral without the duly acknowledged written consent of the beneficiary of the deed of trust or mortgagee."
SECTION 4.  This act is effective when it becomes law.