When the short session of the North Carolina General Assembly adjourned earlier this month (July 10) legislators had adopted a $19 billion budget, signed into law by Governor Beverly Purdue on June 30.
In her periodic legislative briefing, Kathleen Riely, Wilmington Regional Association of Realtors Government Affairs Director, noted that the new budget did not target the real estate industry or tap Realtors with any new taxes or fees, however, several bills were passed affecting real estate transactions.
The first, SB 35, a Ban on Private Transfer Fees introduced by Sen. Hoyle (D-Gaston), would prohibit the reconveyance of fees upon the sale, gift, conveyance, assignment, inheritance or other transfer of an ownership interest in real property to third parties. A transfer fee, which may be a fixed amount or a percentage of the sale price, is usually paid by the seller. The Governor signed this bill into law on July 1.
A second bill, SB 829, introduced by Sen. Clark Jenkins (D-Edgecombe) would Regulate Appraisal Management Companies effective
Jan. 1 and require that appraisal management companies register with the North Carolina Appraisal Board before directly or indirectly advertising, engaging or attempting to engage in business as an appraisal management company. Governor Purdue signed the bill into law on July 22.
Four bills that passed both the House and Senate remain on the Governor’s desk for signature. Three of these address current foreclosure issues. The first outlaws foreclosure scheme rescue scams in which a transferor is induced to sell property for less than 50 percent of its fair market value.
The Homeowner and Homebuyer Protection Act, SB 1015, introduced by Sen. Josh Stein (D-Wake) also regulates installment sales contracts (sometimes called contracts for deeds) and lease options. Though it passed through the Senate in 2009, Riely qualified that passage with the understanding that the bill required more discussion. It was presented for the Governor’s signature on July 8.
An extension to the North Carolina Banking Commissioner’s Emergency Foreclosure Program was also granted through SB 1216 introduced by Sen. Dan Blue (D-Wake). The bill which originally expired Oct. 31, 2010 has been extended to May 31, 2013. The bill was also presented to the Governor for signature on July 8.
And finally, SB 1400, introduced by Sen. Ron Davis (D-Greene, Pitt and Wayne) prohibits foreclosures while the mortgagors or trustors are on active military duty. The No Foreclosures/Soldiers on Active Duty bill passed both House and Senate and was presented to the Governor for signature on July 10.
The fourth bill awaiting signature will extend Building and Development Permits, SB 831 introduced in 2009 by Sen. Dan Clodfelter (D-Mecklenburg).This legislation removed the requirement that builders/developers of projects that had not commenced or been completed submit to a second approval process.
Riely noted that the approval is not only time consuming but expensive with no guarantee of positive outcomes. The Senate recently approved HB 683 (Permit Extensions), introduced by Rep. Jim Crawford (D-Granville), which will continue the extensions for another year. The bill was presented to the Governor for signature on July 10.
Last but not least, the Terminal Groin Legislation did not pass during the short session, even though it passed the Senate, House Speaker Hackney did not allow a vote on the House floor.
The North Carolina General Assembly remains adjourned until Jan. 26, 2011.
