Covenants in NC

[James Jordan]

I AM NOT GIVING LEGAL ADVICE. CHECK YOUR SITUATION CAREFULLY BEFORE TAKING ACTION. 

Dealing with another situation I came across a loophole resulting from the passage of a statute called the Marketable Title Act. Sounds reasonable enough. 
But in my opinion the result of some compromises among lobbying interests, here’s what happened in the statute and the case law. 
Restrictive covenants which are 30 or more years old and not ratified by the members, or formed an HOA before 2022 ARE UNENFORCEABLE no matter what!
Automatic renewal—nope. Architectural committees—toothless tigers. 
The exception is a subdivision that had a HOA by 2022 which is perpetual. They get a free pass and can do what they want. However, There are hundreds of subdivisions and thousands of houses in North Carolina which have for all practical purposes unenforceable covenants. If you’re in one, or looking to buy, this might be your chance to grow some aluminum. You still have building permits and potential nuisance issues to deal with, but you would be surprised at how many of these subdivisions exist. 
73,
Jim K4QPL 


Sent from my iPhone