As you may be aware, North Carolina signed Residential Inspection Bill SB 683 (the "Bill") into law in June 2011 in large part due to the efforts of the Apartment Association of North Carolina and it's regional branches like the Triangle Apartment Association. Unfortunately the Bill was not passed as it was originally written due to negotiations at the General Assembly and it is neither as clear nor as useful as the original proposed draft.
In light of the passage of SB 683 many North Carolina municipalities are now trying to amend their inspection ordinances or to pass new ordinances. These municipalities include Raleigh, Durham, Fayetteville, Wendell, and Charlotte, and they are having varying degrees of success. I will discuss and update you on their progress in upcoming posts.
If a municipality you have a rental property in passes a new inspection ordinance you should not assume that it complies with the Bill. When assessing whether the municipalities are complying with the Bill, key areas include:
1) Does the ordinance in question discriminate between rental and owner occupies housing?
2)Are they charging a rental inspection fee to all landlords? If so, where they doing it before June 1, 2011?
3) Are all landlord's required to take a landlord training course?
4) Do the fees charged exceed the statutory authority granted in the Bill?
If your local proposed ordinance is not legal or desirable you may be able to shape the process by voicing your opinion at the appropriate time before your local municipal council. This can be particularly effective if you involve other landlords and property managers.
If you find out about a municipality, other than those listed above passing an inspection ordinance please let me know, and I will try to get it in front of the right people to evaluate it and determine whether it is legal or not, and I will also make everyone who read these posts of the potential ordinance.
Norm Praet, Esq.
Praet Law Firm, PLLC
(919) 627-7261
Monday, February 6, 2012
Sunday, October 30, 2011
WHO CAN MANAGE RESIDENTIAL PROPERTY IN NORTH CAROLINA?
Where would you even look to find the answer to this question?
Other than asking a knowledgeable landlord tenant attorney, or reading this blog (published by a knowledgeable landlord tenant attorney), the Real Estate Commission website has a lot of information for anyone who is interested in the regulation of real estate in North Carolina.
First Question: What is Property Management?
According to the NC Real Estate commission, the term "property management" encompasses a broad range of complex activities, it may in its simplest form be said to consist of (1) procuring suitable tenants for rental property, (2) collecting rents/security deposits, (3) providing for the care and maintenance of the leased premises, and (4) maintaining records regarding the property.
Second Question: Who Can Manage Real Property?
The list is pretty short: 1) a licensed realtor; 2)the property owner; 3) employees of the property owner; 3)a manager in the owner's limited liability company (the manager means in the formal LLC sense, but they do not have to also be a member); and clerical, maintenance or janitorial personnel or other person~ who are not involved in the renting' or leasing of real estate.
Third Question: Who Is An Employee of the Owner?
To determine whether persons are regular employees of the property owner (as opposed to agents or independent contractors), the Real Estate Licensing Board applies the following tests:
Does the property owner personally exercise strict control and supervision over such persons?
Does the property owner compensate these persons on a salary basis rather than on a commission or transactional basis?
Does the property owner pay social security taxes on their earnings?
If the answer to any of these questions is "no", then a presumption is raised that the person is not, in fact, an employee of the property owner, and therefore a real estate license would be required in order for this person to handle real estate transactions for the owner.
Fourth Question: Can a Real Estate Broker Form a Management Company And Employ Unlicensed Individuals to Manage Property Under His Supervision?
In a word, NO.
Fifth Question: Is It Really A Big Deal If I Manage A Property Without Authority?
To act as an agent in the leasing or renting of real estate without the required license(s) is a criminal offense.
When employing a management company you should confirm that they are licensed to manage property in North Carolina. As a final thought, not all management companies are equally knowledgeable and effective. Make sure that they are experienced and keep abreast of the constantly changes laws and ordinances that affect your property and your tenants.
Norman D. Praet, Esq. - Assisting owners and managers of rental property.
Other than asking a knowledgeable landlord tenant attorney, or reading this blog (published by a knowledgeable landlord tenant attorney), the Real Estate Commission website has a lot of information for anyone who is interested in the regulation of real estate in North Carolina.
First Question: What is Property Management?
According to the NC Real Estate commission, the term "property management" encompasses a broad range of complex activities, it may in its simplest form be said to consist of (1) procuring suitable tenants for rental property, (2) collecting rents/security deposits, (3) providing for the care and maintenance of the leased premises, and (4) maintaining records regarding the property.
Second Question: Who Can Manage Real Property?
The list is pretty short: 1) a licensed realtor; 2)the property owner; 3) employees of the property owner; 3)a manager in the owner's limited liability company (the manager means in the formal LLC sense, but they do not have to also be a member); and clerical, maintenance or janitorial personnel or other person~ who are not involved in the renting' or leasing of real estate.
Third Question: Who Is An Employee of the Owner?
To determine whether persons are regular employees of the property owner (as opposed to agents or independent contractors), the Real Estate Licensing Board applies the following tests:
Does the property owner personally exercise strict control and supervision over such persons?
Does the property owner compensate these persons on a salary basis rather than on a commission or transactional basis?
Does the property owner pay social security taxes on their earnings?
If the answer to any of these questions is "no", then a presumption is raised that the person is not, in fact, an employee of the property owner, and therefore a real estate license would be required in order for this person to handle real estate transactions for the owner.
Fourth Question: Can a Real Estate Broker Form a Management Company And Employ Unlicensed Individuals to Manage Property Under His Supervision?
In a word, NO.
Fifth Question: Is It Really A Big Deal If I Manage A Property Without Authority?
To act as an agent in the leasing or renting of real estate without the required license(s) is a criminal offense.
When employing a management company you should confirm that they are licensed to manage property in North Carolina. As a final thought, not all management companies are equally knowledgeable and effective. Make sure that they are experienced and keep abreast of the constantly changes laws and ordinances that affect your property and your tenants.
Norman D. Praet, Esq. - Assisting owners and managers of rental property.
Wednesday, September 21, 2011
Blogger Speaking at Triangle Apartment Affairs Meeting on September 22, 2011
What: Triangle Apartment Association: Independent Rental Owners Committee Meeting
Subject: Landlord Liability
When: September 22, 2010
Where: 3739 National Dr # 202
Raleigh, NC 27612-4844
(919) 782-1165
Norman D. Praet, Esq. presents the following:
LANDLORD LIABILITY; A property owner has a duty to provide their tenants a reasonably safe environment. This duty comes from a number of areas: 1) statutory law; 2) contract law; and 3) negligence law. Examples of statutory law are the landlord’s duties to provide fit premises as set out in N.C. Gen. Stat. 42-42. Contract law liability is based on the representations in your lease, and the implied warranties that surround the lease. Negligence claims (you had a duty and you breached it) include property defects, safety, and hiring. With all of these potential areas of liability a landlord must stay informed. I will address the potential legal pitfalls in these three areas and what you can do to avoid them.
Subject: Landlord Liability
When: September 22, 2010
Where: 3739 National Dr # 202
Raleigh, NC 27612-4844
(919) 782-1165
Norman D. Praet, Esq. presents the following:
LANDLORD LIABILITY; A property owner has a duty to provide their tenants a reasonably safe environment. This duty comes from a number of areas: 1) statutory law; 2) contract law; and 3) negligence law. Examples of statutory law are the landlord’s duties to provide fit premises as set out in N.C. Gen. Stat. 42-42. Contract law liability is based on the representations in your lease, and the implied warranties that surround the lease. Negligence claims (you had a duty and you breached it) include property defects, safety, and hiring. With all of these potential areas of liability a landlord must stay informed. I will address the potential legal pitfalls in these three areas and what you can do to avoid them.
Friday, August 12, 2011
Impact Fees for New Apartment Construction in Cary
The town of Cary is considering imposing impact fees on new multi-family construction despite Wake County's repeal of such fees because they stifle growth. You can read the Cary News article on the issue here.
If you are involved in the multi-family industry in Cary you should consider letting the Cary Town Council know what you think about these fees. You can find information about the Cary Town Council here. Just remember, if you don't try to make a difference you can't complain about the results.
If you are involved in the multi-family industry in Cary you should consider letting the Cary Town Council know what you think about these fees. You can find information about the Cary Town Council here. Just remember, if you don't try to make a difference you can't complain about the results.
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