2012 Landlord Tenant Law Changes or How to Accept Partial Payment and Still Evict

On June 11, 2012, the Governor signed House Bill 493 into law as Session Law 2012-17, appropriately entitled "Landlord Tenant Law Changes." Although signed on June 11, 2012, the Law is not effective until October 1, 2012.

The Law passage is due in large part to the efforts of the Apartment Association of North Carolina and the North Carolina Realtors. The Law changes aspects of several different areas of landlord-tenant law. A summary of the changes is set forth below:

1.     APPEALS: Clarifies that tenant is required to pay rent during pendency of case appealed to district court;

2.      ABANDONED PROPERTY:

a.       Donate raised from $500 to $750

b.      Discard raised from $100 to $500

3.       PARTIAL PAYMENT OF RENT:

a.       In an action for ejectment based upon G.S. 42-26(a)(2), the lease may provide that the landlord's acceptance of partial rent or partial housing subsidy payment does not waive the tenant's breach for which the right of reentry was reserved, and the landlord's exercise of such a provision does not constitute a violation of Chapter 75 of the General Statutes.

4.    SECURITY DEPOSIT: Clarifies that upon termination

a.       You may deduct commission to realtor/property manager for reletting if tenant breaches lease.

5.       DEATH OF A TENANT: Streamlines process for removal of tenant possessions and reletting home if tenant passes away.

  The provision that will likely be of greatest interest is the"Partial Payment" provision. It is important to note that that in order to gain the benefit of the statute you must have the language required by the Law included in your lease.







Legal Disclaimer This site is intended for general informational purposes only and does not provide any legal advice nor create any attorney-client relationship. Statutes and case law vary from jurisdiction to jurisdiction. Information presented here may not be applicable to any individual situation. You should consult a licensed attorney in your jurisdiction for legal advice relating to your specific situation. The opinions expressed herein are those of the author and not of Praet Law Firm, PLLC. All material in this blog copyright 2009-2012.

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NC RESIDENTIAL INSPECTION LAW

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

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 if the owner is a corporation; 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.