News + Insights

Construction Conversations: Rapid Fire Legal Update

Written By E. Bradley Evans and Devon D. Williams

Three Ward and Smith attorneys shared critical insights on an array of legal topics impacting the construction industry, including updates on the shifting landscape of employment regulations, the nuances of North Carolina'…

Highlights of North Carolina Construction Legend's Fireside Chat

Written By William S. Durr, Merrill G. Jones, II, and Emily G. Massey

In a forthright discussion moderated by Hank Harris, Director of Consulting for Ward and Smith's Business Consulting team, two of the North Carolina construction industry's most respected leaders shared candid insights and…

How to Handle Pet Disputes in Community Associations

Written By Adam M. Beaudoin and Hunter D. Cornelius

Earlier this year, in Red Rover, Red Rover, Come on Over? Understanding Pet Policies in Community Associations, we discussed the various types of pet policies in community associations. However, creating pet policies is o…

House Bill 47 Delays Effective Date for North Carolina's New Building Code

Written By James W. Norment and Luke C. Tompkins

Recent media coverage of the Hurricane Helene Mountain Recovery Bill left out a critical piece of news for construction industry stakeholders. House Bill 47 ("H47") was signed into law (Session Law 2025-2) by Governor Ste…

Understanding Community Association Authority: Regulating Parking on Community Streets in North Carolina

Written By Hunter D. Cornelius and Madeline Lipe Williams

As a community association manager or board member, few issues generate more headaches than parking regulations. When residents call to complain about their neighbor's vehicle blocking the street or a commercial truck par…

Navigating Wetlands in Coastal North Carolina Real Estate Development

Written By Amy P. Wang

The landscape of coastal real estate development in North Carolina has undergone a seismic shift following major regulatory changes over the last few years. For developers eyeing coastal properties, understanding the rece…

Maintaining Harmony: Best Practices for Enforcing Community Rules and Covenants

Written By Madeline Lipe Williams

One of the most important roles a community association serves is garnering resident compliance for both community rules and declarations of covenants, conditions and restrictions ("Covenants"). If done well, enforcement …

Owning Real Property Near Military Bases: Considerations for Buying, Selling, and Developing Land in an AICUZ

Written By Clifford P. Parson and Emily B. Sullivan

You have found the perfect spot for a new neighborhood, office complex, or retail center—only to discover it's within an Air Installations Compatible Use Zone (AICUZ). Suddenly, noise levels, building heights, and s…

Red Rover, Red Rover, Come on Over? Understanding Pet Policies in Community Associations

Written By Adam M. Beaudoin and Hunter D. Cornelius

Many community associations have restrictions that limit and/or prohibit pets. In general, as long as such restrictions are drafted clearly, the North Carolina Courts will uphold their enforcement; however, there are seve…

Community Associations Legislative Update: 2023 - 2024 Legislative Session

Written By Adam M. Beaudoin and Madeline Lipe Williams

The North Carolina General Assembly finally concluded an extremely busy 2023-2024 legislative session on December 13, 2024. Several bills introduced during this session had the potential to significantly impact the commun…

Some, But Not All: How the North Carolina Planned Community Act affects Pre-1999 Planned Communities

Written By Justin M. Lewis

In 1999, the North Carolina General Assembly enacted the North Carolina Planned Community Act ("Act") as Chapter 47F of the North Carolina General Statutes.  The Act was intended to establish certain rights for prope…

What's in a Name Anyway? Trademark Basics for Community Associations

Written By Erica B. E. Rogers

This article explores the essentials of trademark rights, their relevance for community associations, and the balance between protecting these trademarks versus respecting the free speech of homeowners. I. What is a Trade…

Navigating the Skies: Why Drone Land Surveys May Violate Licensing Statutes, Not First Amendment Rights

Written By Alexandra E. Ferri and Evan M. Musselwhite

It is widely understood that to engage in the practice of land surveying in North Carolina, one must have an appropriate license. Less widely understood is what really constitutes the "practice of land surveying." The eve…

When is a General Contractor's License Required for Emergency Remediation Services?

Written By Evan M. Musselwhite

(Ed. Note: This article was originally published on January 10, 2020, and has been updated.) North Carolina has seen an increase in the need for building repair services following the damage caused by recent hurricanes, i…

Political Season is Upon Us: Guidance for Navigating Political Sign Display in Community Associations

Written By Adam M. Beaudoin and Hunter D. Cornelius

With federal and state elections less than forty-five days away, political signs are popping up in yards everywhere.  Many community associations have restrictions in their declaration or covenants, conditions, &…

Amending Your Planned Community's Declaration

Written By Justin M. Lewis

The most common question community associations in planned communities (i.e., single, family homes) pose is, "How can we amend our declaration?"   Of course, this question includes many layers: (1) What is the p…

Risk Reduction Strategies for Construction Contractors in North Carolina

Written By Jeffery I. Stoddard

An ounce of prevention is worth a pound of cure. Today's construction environment demands a lot from contractors who are pulled in multiple directions and whose responsibilities may seem limitless. Beyond performing good …

Recent Case Law Does Not Doom All Rental Restriction Amendments

Written By Alexander C. Dale

The North Carolina Court of Appeals recently released two cases that raise the question of whether a covenant amendment containing rental restrictions may be adopted by a condominium association or homeowners association. …

A Few Things You Should Know in Case of Windstorm Damage to Your Home or Building

Written By Michael J. Parrish and Amy H. Wooten

North Carolinians are on high alert, tracking weather patterns and prepping their homes and other structures for potential storms. Many know the importance of having a plan and the peace of mind that comes with owning a g…

Commercial Real Estate Sellers: Hire Your Own Attorney!

Written By J. Drake Brinkley

Does a seller of commercial real estate really need an attorney?  I get asked this question often, and the resounding answer is "yes!" Often, sellers of commercial real estate assume they can rely on the buyer's atto…

What Landowners Need to Know About Solar Farm Leases in North Carolina

Written By Clifford P. Parson

In 2007, the North Carolina General Assembly established the Renewable Energy Efficiency Portfolio Standards ("Standards"), which required that all investor-owned utilities in the state obtain 12.5% of their energy needs f…

Leaving the Nest: Healthy Community Association Transition

Written By Dana M. Lingenfelser and Allen N. Trask, III

In North Carolina, private developers establish community associations by planning, building infrastructure, developing lots, and organizing property owners or associations. Initially, developers have substantial control …

Navigating Easement Disputes in North Carolina

Written By Ryal W. Tayloe and Luke C. Tompkins

An easement is a right to make some specific use of land owned by another. Because easements involve the easement owner using land owned by someone else and because it is human nature to value and protect property, it is …

Top 10 Most Popular Articles of 2023

Written By Joanne H. Badr and Joseph A. Schouten

As we approach the New Year, it's time to reflect on the articles that have most resonated with readers throughout 2023. Ward and Smith attorneys have provided valuable insights into various legal considerations. Here are…

Five Reasons Not to Sign a Real Estate Contract (Without Consulting an Attorney First)

Written By Kristin D. Mitcham

Buying and selling commercial real property is expensive, starting with the price of the property and then adding the fees for inspections, insurance, recording, and commissions, if any.  Buyers and sellers might be …

WOTUS Whiplash 4.3: The Revision to the Revised Definition of "Waters of the United States"

Written By Amy P. Wang

The third major development of 2023 for defining "Waters of the United States" ("WOTUS") has arrived.   First, in early 2023, the United States Environmental Protection Agency ("EPA") and the United States Army Corps…

Disasters Take Many Forms – Preparing your Community Association for the Unexpected

Written By Madeline Lipe Williams

Disasters, natural or otherwise, are usually unexpected and leave little time for advance action. Hurricanes, named storms, floods, fire, and even crime, are types of disasters that communities across North Carolina may e…

Federal Dollars are Nice to Get, but Owners, Designers, and Builders Need to Watch Out for Those Strings

Written By Alexandra E. Ferri and James W. Norment

North Carolina statutes permit State agencies and local governments (the "government") to use alternatives to traditional bid-build approaches to construction.  Two popular options are construction manager at risk an…

Licensing and Permitting for Solar Panel Projects in North Carolina

Written By Evan M. Musselwhite

Solar panel systems on residential homes have greatly increased in popularity over the last several years with the boom in renewable energy.  This brought questions and a degree of confusion regarding both licensing …

Biden Administration Revitalizes and Advances the Federal Government's Commitment to Environmental Justice

Written By Amy P. Wang

On April 21, 2023, the eve of Earth Day, President Biden continued his Administration's spotlight on environmental justice issues by signing Executive Order 14096, entitled "Revitalizing Our Nation's Commitment to Environm…

WOTUS Whiplash 4.0: The Revised Definition of "Waters of the United States"

Written By Amy P. Wang

It's that song in your head that you can't stop hearing.  On March 20, 2023, the 500-plus page final Revised Definition of "Waters of the United States" ("2023 WOTUS Rule" or "Rule") went into effect, published joint…

Final(ly) Adoption by the US EPA of Revised Standards and Practices for All Appropriate Inquiries

Written By Mary V. Cavanagh and Amy P. Wang

The United States Environmental Protection Agency ("EPA") adopted an updated standard of practice for Phase I Environmental Site Assessments on December 15, 2022.  The updated standard adds more refined investigation …

Deed Warranties and Why They Should Matter To You

Written By Dana M. Lingenfelser

You're negotiating to buy a piece of real estate and your attorney tells you that the seller is proposing to give you a "Special Warranty Deed" in exchange for all of the money you will pay.  Special Warranty Deed - …

When 2 Minus 1 Still Equals 2: Combining Lots in a Planned Community

Written By Dana M. Lingenfelser and Kristin D. Mitcham

"I will just combine my two lots into one, then I only have to pay one assessment but I'll still have two votes, right?" NOT NECESSARILY! Owners of adjoining lots in subdivisions often decide to combine them for a va…

Installation and Use of Solar Power Systems in North Carolina

Written By Eric J. Remington

Approximately twenty-five percent of North Carolinians live in a planned community where the restrictive covenants are administered by a homeowners association ("HOA").  If you live in North Carolina, you likely have…

The Intersection of the Bipartisan Infrastructure Law and Davis-Bacon Act Requirements for Federal Contractors and Subcontractors

Written By X. Lightfoot and Devon D. Williams

On November 15, 2021, President Joe Biden signed the $1.2 trillion Infrastructure Investment and Jobs Act into law, which is popularly known as the Bipartisan Infrastructure Law ("BIL").  The BIL is estimated to crea…

New Law Limits Broad Form Lien Waivers in Construction Projects

Written By Evan M. Musselwhite

Lien rights can be one of a contractor's most important means of securing payment on any private construction project in North Carolina.  Under Chapter 44A of the North Carolina Statutes, contractors that contract di…

Community Association Restrictions Last Forever … Right? Community Association Restrictions and the Confusion Surrounding Tax Sales

Written By Dana M. Lingenfelser, Kristin D. Mitcham, and Thomas C. Wolff

It may be hard to believe, but community associations ("Associations") occasionally deal with property owners who do not think they are required to pay assessments.   The reasoning for these beliefs can range from "I…

When Is a Deal a Deal?

Written By Isabelle M. Chammas and E. Bradley Evans

Oftentimes, individuals attempt to negotiate deals on their own without the benefit of legal advice and assistance. At best, this can lead to certain pitfalls. At worst, this can lead to the complete invalidity of the att…

North Carolina Licensing for General Contractors: Licensure of Joint Ventures

Written By E. Bradley Evans and Evan M. Musselwhite

Joint ventures are a common method of undertaking construction projects in North Carolina. Through a joint venture, two companies can pool their resources and expertise to complete a project.  Joint ventures are unin…

The Application of North Carolina's Economic Loss Rule to Commercial Construction Projects

Written By Luke C. Tompkins

This article addresses recent developments in North Carolina law regarding the economic loss rule, explores the application of the economic loss rule to commercial construction projects in light of those developments, and …

Environmental Justice 101: Leveling the Playing Field in the Permitting Process

Written By Amy P. Wang

The concept of "environmental justice" (or "EJ" among environmental practitioners) is not new.  It developed in response to the inordinate number of industrial facilities and contaminated sites located near underrepr…

Community Association Building Blocks: Community Drainage and Flooding and Architectural Control Parameters

Written By Eric J. Remington and Amy P. Wang

Many homeowners in North Carolina experience issues with excessive surface water flow and localized nuisance flooding after rain events.  How communities deal with these problems was the focus of Ward and Smith's lat…

Land Use and Zoning Basics for Community Associations

Written By Clint H. Cogburn

Recently, I detailed a variety of land use laws and land use regulations pertinent to community associations and community association managers. The webinar, which is part of Ward and Smith’s Community Association B…

State Stormwater Program Amendments Significant for Those Affected by Post Construction Stormwater Permits

Written By Amy P. Wang

Extensive changes to North Carolina's stormwater runoff statute went into effect on September 16,2021 as part of Session Law 2021-158. The Stormwater Program amendments are embedded in an environmental omnibus b…

Use Clarity to Avoid Contempt in Bankruptcy

Written By Lance P. Martin

This is a story about contempt and clarity.  It comes to us from a July 2021 North Carolina district court decision reversing a $115,000 sanctions order by a North Carolina bankruptcy court.  The story offers a …

Taking License Liberties Based on Affiliation

Written By Evan M. Musselwhite

Questions regarding general contractor licensure requirements often arise among affiliated or related companies, namely, which entities are required to have a license. The issue often arises where a licensed general contr…

Common Mistakes to Avoid When Appealing a North Carolina Occupational Licensing Board Decision

Written By Eric J. Remington and Amy H. Wooten

Ed. Note: This is the third in a series of three articles examining disciplinary and appeals processes in front of North Carolina professional and occupational licensing boards. See the first article here and the seco…

What Community Associations Should Know from HOA Attorneys

Written By Adam M. Beaudoin

Maintenance, repairs, upkeep, and enforcement of rules are all in a day's work for a community association – now one of the most common housing arrangements in North Carolina. To date, nearly 27% of the state's popu…

North Carolina Occupational Licensing Boards: Disciplinary Hearings and Appeals, 101

Written By Eric J. Remington and Amy H. Wooten

Ed. Note: This is the first in a series of three articles examining disciplinary and appeals processes in front of North Carolina professional and occupational licensing boards. In North Carolina, a significant number of …

Restrictive Covenants: What Are They And Why Should You Care?

Written By Justin M. Lewis

Restrictive covenants have a significant and substantial impact on the use and value of property; yet they are often ignored entirely or not considered until the end of the due diligence period before purchasing the proper…

Joint Check Agreements in Construction: Use with Caution

Written By Luke C. Tompkins

Construction projects involve a tiered relationship, which consists of (a) the project owner, (b) a general contractor hired by the owner who manages the construction project as a whole, (c) first-tier subcontractors hired…

What Do You Mean I Can’t Place the List of Delinquent Homeowners on the Clubhouse Door? Community Association Pitfalls: State and Federal Collection Laws

Written By Thomas C. Wolff

Whether you are a board member or a property manager for a community association ("Association"), you have probably dealt with owners that fail to pay their assessments, and whose accounts need to be referred for collectio…

Short-Term Rentals Regulations: Not Always a Day at the Beach for Municipalities

Written By Clint H. Cogburn

The explosion of short-term rental properties through North Carolina – from mountain cities to coastal destinations, and cities and towns in between – has resulted in increased scrutiny and regulation by munici…

Serving on Your Community Association’s ARC, ACC, or ARB? Take Note to Whom Your Fiduciary Duties Are Owed

Written By Allen N. Trask, III and Amy H. Wooten

Residents of planned communities often must obtain approval prior to making any modifications to their homes and lots.  Through their declaration of covenants, conditions, and restrictions - commonly referred to as t…

WOTUS Encore: The Fate of the Navigable Waters Protection Rule and Implications for Groundwater

Written By Amy P. Wang

It seems like yesterday, but it was actually last summer when the United States Environmental Protection Agency and Army Corps of Engineers published the Navigable Waters Protection Rule, effective June 22, 2020 (the "Ru…

More Breathing Room for Commercial Tenants in Bankruptcy

Written By Lance P. Martin

The Consolidated Appropriations Act of 2021 ("CAA") took effect on December 27, 2020.  The mammoth spending and COVID-19 pandemic relief bill contains provisions related to commercial real estate leases in bankruptcy…

The Economic Loss Rule - Recently Refined or Redefined by the North Carolina Supreme Court

Written By Evan M. Musselwhite and Amy H. Wooten

Recently, the North Carolina Supreme Court issued a decision impacting the application of the economic loss rule in commercial settings, particularly construction.  This article provides a refresher on the economic l…

Who is the Declarant? And Why Does it Matter?

Written By Samuel B. Franck

The concept and designation of the "Declarant" arise from the formation of a planned community or a condominium.  When the developer declares land to restrictions described in a "Declaration" for a planned community …

Industry Veteran Delivers Economic Forecast, Advice for N.C. Construction Firms

Written By Luke C. Tompkins

On October 8, 2020, Hank Harris, the director of Ward and Smith Business Consulting and a senior chairman at FMI Corporation, delivered the keynote address at Ward and Smith's 2020 Virtual Construction Conference.  H…

The Role of the Community Association Attorney

Written By Allen N. Trask, III

People often view Community Associations as simple collections of rule-obsessed homeowners that do little more than debate the color of the flowers under the monument signs leading into the community.  But at their b…

Issues Impacting Enforceability of Liquidated Damages in Construction Contracts

Written By Luke C. Tompkins

Liquidated damages are a sum specified in a contract as the measure of recovery in the event of a breach of the contract.  Liquidated damages provisions are common in construction contracts to guard against damages t…

Claims of Lien For Community Associations: How to Effectively Utilize them to Compel Payment

Written By Thomas C. Wolff

Many community association managers know that a lien can be placed on a delinquent owner's lot as a method of securing repayment of assessments.  In many cases, the mere threat of having a lien placed against the own…

CDC Enacts New Residential Eviction Moratorium

Written By X. Lightfoot and Hayley R. Wells

On September 2, 2020, the Centers for Disease Control and Prevention ("CDC"), which is under the Department of Health and Human Services ("DHHS"), issued a temporary Order ("Order") halting certain residential evictions to…

Call of [Fiduciary] Duty: How Good Faith, Due Care, and Loyalty Guide Community Associations' Boards

Written By Allen N. Trask, III and Amy H. Wooten

Nearly 30 percent of North Carolina's population lives in a community association of some sort, be that a condominium or single-family community.  Yet, confusion among the general population about the nature of …

Your HOA Got Served: Now What?

Written By Allen N. Trask, III and Amy H. Wooten

The unfortunate reality for many community associations and their boards of directors is that at some point in their existence they will be sued.    When that happens, there are a number of basic but import…

Commercial Owners Associations/Residential Owners Associations The Same — But Different

Written By Justin M. Lewis

What are commercial owners associations, and are they really that different from residential owners associations?  Commercial owners associations are nonprofit corporations that govern planned communities, condominiu…

Wave Goodbye to the Waiver Defense in Some Landlord/Tenant Disputes

Written By Norman J. Leonard

On May 1, 2020, in Winston Affordable Housing, LLC v. Roberts, the North Carolina Supreme Court clarified the law surrounding a landlord's acceptance of rent after issuing a non-renewal notice because of the tenant's breac…

Heavy Is the Head That Wears the Crown: Board of Director Authority in a Community Association

Written By Adam M. Beaudoin

The Board of Directors for a Community Association functions in a very similar capacity as the Board of a standard corporation. Approximately 95% of all decisions to be made on behalf of a Community Association will be ma…

COVID-19 Eviction Moratoriums: Need-To-Know Information for NC Landlords and Tenants

Written By Eric J. Remington

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed by Congress and signed into law by President Trump on March 27, 2020.  The CARES Act provided immediate economic assistance for American worke…

Replacing the Clean Water Rule – Is the Dance Really Over?

Written By Amy P. Wang

On April 21, 2020, the United States Environmental Protection Agency ("EPA") and Army Corps of Engineers ("Corps") completed step two of the two-step "repeal and replace" process ordered by President Trump in 2017 by publi…

North Carolina Extends Certain Real Property Development Approvals

Written By Samuel B. Franck and Kristin D. Mitcham

This week the General Assembly of North Carolina provided some relief to developers with active development approvals.  Pursuant to Senate Bill 704, signed into law on May 4, 2020 (the "Act"), the expiration of those…

Economic and Financial Uncertainty: How a Homeowners Association Can Protect Itself

Written By Tyler J. Russell and Thomas C. Wolff

In a short period of time, COVID-19 has changed the way we live and conduct business.  Sadly, the pandemic seems as though it will cause (or already has caused, depending on who you ask) a devastating impact on our l…

ARC Approval – Gotta Have It

Written By Ryal W. Tayloe and Allen N. Trask, III

Ward and Smith's Community Associations attorneys have successfully defended a Wilmington area Community Association in the North Carolina Court of Appeals. On April 21, 2020, the North Carolina Court of Appeals…

HOA Boards and the Coronavirus

Written By Adam M. Beaudoin

We are seeing the emails already. "We have a Board Meeting and need to award the contract for the pool, but we shouldn’t be in the same room. How do we do this?" "We have a Membership meeting scheduled for April bu…

When a Condominium Falls Down

Written By Samuel B. Franck and Kristin D. Mitcham

Buildings do not last forever.  Eventually, gravity and time will prevail over concrete, steel, wood, and glass.  The risks associated with that life span are captured well in transactions related to single-fami…

Two Pairs of Eyes Are Better Than One: Why Community Associations and Developers Should Have Separate Legal Counsel

Written By Allen N. Trask, III

North Carolina has the third most planned communities in the United States after California and Florida.  All of these planned communities typically evolve in a similar three-step process.  First, a real estate …

The Member’s Role in a Community Association

Written By Adam M. Beaudoin

Congratulations!  You just purchased your first home in a planned community and became a member of a community association.  For a detailed understanding of what a community association is all about, please clic…

NC Anti-Indemnity Statute Update, New Changes Now in Effect

Written By William S. Durr and Evan M. Musselwhite

On July 8, 2019, Governor Roy Cooper signed into law HB 871, significantly altering North Carolina's anti-indemnity statute, N.C. Gen. Stat § 22B-1 ("Anti-Indemnity Statute"), particularly as it relates to indemnity a…

The Accidental Construction Owner: A Checklist of Considerations for HOAs Engaging in Construction

Written By Jason T. Strickland

Homeowners associations ("HOAs") do not typically act as construction owners.  HOAs are set up as entities to maintain and manage planned unit communities.  The most important and common role of the HOA is to ma…

Construction Conference Insights: Industry Expert Lays Out Prospects for Growth

Written By Amy P. Wang

Wondering about the outlook for the construction industry in 2019 and beyond? Chris Daum, president and CEO of Raleigh-based FMI Corp., has a forecast. Daum told attendees at Ward and Smith’s 2019 Construction …

Can I Get Sued Over a Court-Authorized Foreclosure?

Written By Lance P. Martin

If a Clerk of Court authorizes a foreclosure sale and the trustee sells the property, can a borrower or other aggrieved party later sue to nullify the foreclosure sale or recover damages caused by the foreclosure?  I…

Avoiding Commercial Lease Disputes – Clearly Reflecting the Intent of the Parties is Key!

Written By Eric J. Remington

A commercial lease symbolizes a consensual relationship between parties that can be enduring and rewarding, or short-sighted and emotionally and financially taxing. Entering into a clearly drafted lease agreement at the o…

Rental Rebellion: New Bill Would Change the Leasing Landscape in Planned Communities

Written By Allen N. Trask, III

The battle between "pesky, disrespectful, transient tenants," and "overbearing, Big Brother community associations" may be heating up in North Carolina, thanks to a bill filed at the General Assembly this week. The abilit…

Brownfields Redevelopment Receives Boost Under the BUILD Act

Redevelopment of environmentally-damaged property has seen steady growth in North Carolina and nationwide.  The attraction to dense, urban communities offering work/live/play opportunities and away from suburban livi…

When a Chapter 11 Plan is Absolutely Dead on Arrival

Written By Lance P. Martin

Recently, we discussed In re CHL, a case involving a real estate developer in Chapter 11. We focused on the importance of the Disclosure Statement as a prerequisite to a debtor's ability to move forward with a plan of reo…

New Coastal Stormwater Program Variances May Benefit Community Associations

Written By Amy P. Wang

In the latest version of what appears to be an annual exercise, the North Carolina General Assembly passed a regulatory reform bill over the Governor's veto that includes relaxation of environmental provisions.  This…

Trademarks and Community Associations: Maintaining Your Community's Brand

Written By Norman J. Leonard

Your community association ("Association") probably invests substantial resources in protecting and maintaining its green spaces, facilities, and other common elements. But what about its good name?  If your communit…

Meeting Street: Safely Traveling the Road to Community Association Annual Meetings

Written By Allen N. Trask, III

Annual membership meetings are an essential thread of the fabric of community associations.  Indeed, North Carolina law requires that all community associations hold a meeting of the association's members at least on…

The Reach of the Clean Water Act Takes a Dive into Groundwater

Written By Amy P. Wang

Can the law that protects the quality of the nation's waters seep into groundwater below the surface? According to the United States Court of Appeals for the Fourth Circuit, which includes North Carolina in its jurisdicti…

Construction Law: Final Payment by Owner, Avoiding Lien Claims

A contractor has finished work on a construction project in North Carolina and submitted a written request for final payment to the owner of the real property that has been improved by the construction.  The owner is…

Construction Arbitration: The Pros and Cons

Written By Jason T. Strickland

It's an unfortunate fact that many construction projects end in disputes, driving the parties into some form of dispute resolution. Many of these construction disputes are resolved through arbitration, which is a process …

Pre-Closing Due Diligence with Commercial Real Estate Helps Avoid Post-Closing Remorse

Written By Joanne H. Badr

Your business has taken off, and you've been searching for that perfect 7,500 square foot building on an acre of land close to town, with parking and a view, and you've finally found it.  Mission accomplished, right?…

Real Property: More Than Meets the Eye

Written By Samuel B. Franck

Each parcel of real property is a unique asset. It is typically well understood that location is paramount, and that size, elevation, and other physical characteristics are other important factors.  Nonetheless, ther…

Focus on Military Readiness Means More Construction Work on Military Bases

Written By James W. Norment

The United States military is the most powerful warfighting force in world history. But Secretary of Defense Jim Mattis made a stark observation in the 2017 National Defense Strategy: Without sustained and predictable in…

"ITIN Contractors" – What North Carolina Construction Companies Need to Know to Minimize Risk

Written By Lee C. Hodge

As explained in an earlier article, the North Carolina Department of Revenue (the "NCDOR") has aggressively audited North Carolina construction companies on the issue of whether they are properly withholding with respect t…

The 2018 North Carolina Chamber Environmental Compliance Conference

Written By Amy P. Wang

The North Carolina Chamber hosted its annual Environmental Compliance Conference on February 1, 2018, in Durham. North Carolina leaders were on hand to provide updates and advice on environmental compliance regarding air, …

Exclusive Use Provisions in Commercial Leases

Written By Justin M. Lewis

Exclusive use provisions are common in commercial leases, especially in large shopping centers with many tenants. An exclusive use provision essentially allows a tenant to use its premises for an intended specific use (for…

Muddy Waters: Stormwater Permits Not Meant to Control Flooding or Flood Losses

Written By Amy P. Wang

Those living in communities subject to North Carolina Stormwater Permits or local stormwater management easement agreements are increasingly alarmed as rainy weather, even without a named storm, causes property to saturate…

Issues to Consider in Rights of First Refusal

People often talk about giving or getting a Right of First Refusal ("ROFR") in real estate transactions.  But what is a ROFR?  A simple definition might be: If the owner of the property decides to sell the prope…

Your Foreclosure Hearing Just Got More Crowded

Written By Lance P. Martin

On August 30, 2017, an amendment to North Carolina’s foreclosure statutes took immediate effect.  The amended statute, Section 45-10, concerns substitute trustees under a deed of trust.  As amended, Section…

Well, Isn't That a Special Use? Navigating the Special Use Permit Process in North Carolina

Written By Clifford P. Parson

North Carolina statutes provide that cities and counties may issue special use permits in accordance with the principles, conditions, safeguards, and procedures specified in their zoning regulations.  A special use pe…

What NC Community Associations Need to Know about Fair Debt Collection

Written By Norman J. Leonard

Nearly all Community Associations ("Associations") must cope with owners who fail or refuse to pay their periodic assessments (also known as "Dues").  When this happens, the Association, typically acting through its p…

New Stormwater Rules Effective January 1, 2017

Written By Amy P. Wang

Stormwater management is a concern across the country.  The United States Environmental Protection Agency renewed municipal stormwater as one of its National Enforcement Initiatives.  North Carolina is no differe…

The Basics of 1031 Exchanges - Part One

Written By Lee C. Hodge

This is part one of a two-part series on Internal Revenue Code Section 1031 Tax-Deferred property exchanges.  This first article will provide an overview of the rules that govern 1031 exchanges.  Part two will de…

Wet Weather Regulations Now More Expensive Under EPA's Industrial Stormwater Settlement Penalty Policy

Written By Amy P. Wang

Heavy and consistent rainfall this summer, even before Tropical Storms Hermine and Julia and Hurricane Matthew, produced a tremendous amount of stormwater.  Grass swales were too saturated to allow infiltration, and r…

Just Compensation for Contaminated Land

Written By Eric J. Remington

When a government agency or private party involuntarily takes your property (a proceeding called eminent domain or condemnation), you are entitled to receive "just compensation" for the property.  In North Caroli…

The Benefits of Using Multiple "Single-Asset" Limited Liability Companies for Investment Properties

Written By Joanne H. Badr

Practicing real estate law means that I’m constantly talking with all types of clients, including large scale developers as well as individuals simply looking to do a little investing in real estate.  Interestin…

TAKEN! Historic Eminent Domain Decision: NCDOT Must Pay When it Files a Transportation Corridor Protection Map

Written By Ryal W. Tayloe and Jeremy M. Wilson

On June 10, 2016 the North Carolina Supreme Court affirmed the decision of the North Carolina Court of Appeals in the case of Kirby v. North Carolina Department of Transportation. The North Carolina Supreme Court unanimou…

North Carolina General Assembly Makes Public-Private Development Agreements More Available And Attractive

Written By Clifford P. Parson

Background Before 2005, North Carolina's laws on vested rights offered developers some protection, but not enough, for the large, multi-phased, multi-year, mixed use developments that are becoming the norm.  Develope…

North Carolina Construction Companies – Have You Covered Your Bases on Your Payments to Your "ITIN Contractors"?

Written By Lee C. Hodge

If you are like many North Carolina construction company owners and managers, the phrase "ITIN contractor withholdings" is one with which you are unfamiliar.  However, the North Carolina Department of Revenue (the "NC…

Can't Find Enough Cash Flow In the Stock Market? Maybe a "Triple-Net Lease" Is Your Answer

Written By J. Drake Brinkley

Maybe you are getting your finances in order for retirement.  Maybe you own real estate that requires a lot of oversight and you would prefer to be invested in an asset that requires less hands-on attention.  May…

Real Estate Developers - Proper Planning is Key to Maximizing The After-Tax Return on a Development Project

Written By Lee C. Hodge

Before starting a new development project, residential and commercial real estate developers should focus on properly structuring the acquisition and development of the property to minimize taxes.  Proper planning on …

Supreme Court of North Carolina Recognizes Compensable Right in Approved Subdivision Development Plan

Written By Jason T. Strickland

Introduction The power of eminent domain, or "condemnation," is the power of the government and certain regulated public utilities to take private property for public use.  Constitutional protections require …