North Carolina General Statutes 47C-1-103. Definitions
In the declaration and bylaws, unless specifically provided otherwise or the context otherwise requires, and in this chapter:
(1) “Affiliate of a declarant” means any person who controls, is controlled by, or is under common control with a declarant. A person “controls” a declarant if the person (i) is a general partner, officer, director, or employer of the declarant, (ii) directly or indirectly or acting in concert with one or more other persons, or through one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing, more than twenty percent (20%) of the voting interests in the declarant, (iii) controls in any manner the election of a majority of the directors of the declarant, or (iv) has contributed more than twenty percent (20%) of the capital of the declarant. A person “is controlled by” a declarant if the declarant (i) is a general partner, officer, director, or employer of the person, (ii) directly or indirectly or acting in concert with one or more other persons, or through one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing, more than twenty percent (20%) of the voting interests in the person, (iii) controls in any manner the election of a majority of the directors of the person, or (iv) has contributed more than twenty percent (20%) of the capital of the person. Control does not exist if the powers described in this paragraph are held solely as security for an obligation and are not exercised.
Terms Used In North Carolina General Statutes 47C-1-103
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories, so called; and the words "United States" shall be construed to include the said district and territories and all dependencies. See North Carolina General Statutes 12-3
(2) “Allocated interests” means the undivided interests in the common elements, the common expense liability, and votes in the association allocated to each unit.
(3) “Association” or “unit owners’ associations” means the unit owners’ associations organized under N.C. Gen. Stat. § 47C-3-101.
(4) “Common elements” means all portions of a condominium other than the units.
(5) “Common expenses” means expenditures made by or financial liabilities of the association, together with any allocations to reserves.
(6) “Common expense liability” means the liability for common expenses allocated to each unit pursuant to N.C. Gen. Stat. § 47C-2-107.
(7) “Condominium” means real estate, portions of which are designated for separate ownership and the remainder of which is designated for common ownership solely by the owners of those portions. Real estate is not a condominium unless the undivided interests in the common elements are vested in the unit owners.
(8) “Conversion building” means a building that at any time before creation of the condominium was occupied wholly or partially by persons other than purchasers or by persons who occupy with the consent of purchasers.
(9) “Declarant” means any person or group of persons acting in concert who (i) as part of a common promotional plan offers to dispose of his or its interest in a unit not previously disposed of or (ii) reserves or succeeds to any special declarant right.
(10) “Declaration” means any instruments, however denominated, which create a condominium, and any amendments to those instruments.
(11) “Development rights” means any right or combination of rights reserved by a declarant in the declaration to add real estate to a condominium; to create units, common elements, or limited common elements within a condominium; to subdivide units or convert units into common elements; or to withdraw real estate from a condominium.
(12) “Dispose” or “disposition” means a voluntary transfer to a purchaser of any legal or equitable interest in a unit, but does not include the transfer or release of a security interest.
(13) “Executive board” means the body, regardless of name, designated in the declaration to act on behalf of the association.
(14) “Identifying number” means a symbol or address that identifies only one unit in a condominium.
(15) “Leasehold condominium” means a condominium in which all or a portion of the real estate is subject to a lease the expiration or termination of which will terminate the condominium or reduce its size.
(16) “Limited common element” means a portion of the common elements allocated by the declaration or by operation of N.C. Gen. Stat. § 47C-2-102(2) or (4) for the exclusive use of one or more but fewer than all of the units.
(17) “Master association” means an organization described in N.C. Gen. Stat. § 47C-2-120, whether or not it is also an association described in N.C. Gen. Stat. § 47C-3-101.
(18) “Offering” means any advertisement, inducement, solicitation, or attempt to encourage any person to acquire any interest in a unit, other than as security for an obligation. An advertisement in a newspaper or other periodical of general circulation, or in any broadcast medium to the general public, of a condominium not located in this State, is not an offering if the advertisement states that an offering may be made only in compliance with the law of the jurisdiction in which the condominium is located.
(19) “Person” means a natural person, corporation, business trust, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency, or other legal or commercial entity.
(20) “Purchaser” means any person, other than a declarant or a person in the business of selling real estate for his own account, who by means of a voluntary transfer acquires a legal or equitable interest in a unit other than (i) a leasehold interest (including renewal options) of less than five years, or (ii) as security for an obligation.
(21) “Real estate” means any leasehold or other estate or interest in, over, or under land, including structures, fixtures, and other improvements and interests which by custom, usage, or law, pass with a conveyance of land though not described in the contract of sale or instrument of conveyance. “Real estate” includes parcels, with or without upper or lower boundaries, and spaces that may be filled with air or water.
(22) “Residential purposes” means use for dwelling or recreational purposes, or both.
(23) “Special declarant rights” means rights reserved for the benefit of a declarant to complete improvements indicated on plats and plans filed with the declaration (N.C. Gen. Stat. § 47C-2-109); to exercise any development right (N.C. Gen. Stat. § 47C-2-110); to maintain sales offices, management offices, signs advertising the condominium, and models (N.C. Gen. Stat. § 47C-2-115); to use easements through the common elements for the purpose of making improvements within the condominium or within real estate which may be added to the condominium (N.C. Gen. Stat. § 47C-2-116); to make the condominium part of a larger condominium (N.C. Gen. Stat. § 47C-2-121); or to appoint or remove any officer of the association or any executive board member during any period of declarant control (N.C. Gen. Stat. § 47C-3-103(d)).
(24) “Time share” means a “timeshare” as defined in N.C. Gen. Stat. § 93A-41(34).
(25) “Unit” means a physical portion of the condominium designated for separate ownership or occupancy, the boundaries of which are described pursuant to (N.C. Gen. Stat. § 47C-2-105(a)(5).
(26) “Unit owner” means a declarant or other person who owns a unit, or a lessee of a unit in a leasehold condominium whose lease expires simultaneously with any lease the expiration or termination of which will remove the unit from the condominium, but does not include a person having an interest in a unit solely as security for an obligation.
(27) “Lessee” means the party entitled to present possession of a leased unit whether lessee, sublessee or assignee. (1985 (Reg. Sess., 1986), c. 877, s. 1; 2021-163, s. 2(a).)