GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2011

H                                                                                                                                                   2

HOUSE BILL 493

Committee Substitute Favorable 5/9/11

Short Title:        Landlord Tenant Law Changes.	(Public)
Sponsors:
Referred to:

March 29, 2011

A BILL TO BE ENTITLED

AN ACT amending the laws related to landlord tenant relationships.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 42-34.1 reads as rewritten:

"§ 42-34.1.  Rent pending execution of judgment; post bond pending appeal.

(a)        If the judgment in district court is against the defendant appellant, it shall be sufficient to stay execution of the judgment during the 30-day time period for taking an appeal provided for in Rule 3 of the North Carolina Rules of Appellate Procedure if the defendant appellant posts a bond as provided in G.S. 42-34(b). If the defendant appellant fails to make rental payments as provided in the undertaking within five days of the day rent is due under the terms of the residential rental agreement, the clerk of superior court shall, upon application of the plaintiff appellee, immediately issue a writ of possession, and the sheriff shall dispossess the defendant appellant as provided in G.S. 42-36.2.

(a1)      If the judgment in district court is against the defendant appellant and the defendant appellant does not appeal the judgment, the defendant appellant shall pay rent to the plaintiff for the time the defendant appellant remains in possession of the premises after the judgment is given. Rent shall be prorated if the judgment is executed before the day rent would become due under the terms of the lease. The clerk of court shall disperse any rent in arrears paid by the defendant appellant in accordance with a stipulation executed by all parties or, if there is no stipulation, in accordance with the judge's order.

(b)        If the judgment in district court is against the defendant appellant and the defendant appellant appeals the judgment, it shall be sufficient to stay execution of the judgment if the defendant appellant posts a bond as provided in G.S. 42-34(b). If the defendant appellant fails to perfect the appeal or the appellate court upholds the judgment of the district court, the execution of the judgment shall proceed. The clerk of court shall not disperse any rent in arrears paid by the defendant appellant until all appeals have been resolved."

SECTION 2.(a)  G.S. 42-25.9(d)  reads as rewritten:

"(d)      If any tenant abandons personal property of five hundred dollar ($500.00) seven hundred fifty dollars ($750.00) value or less in the demised premises, or fails to remove such property at the time of execution of a writ of possession in an action for summary ejectment, the landlord may, as an alternative to the procedures provided in G.S. 42-25.9(g), 42-25.9(h), or 42-36.2, deliver the property into the custody of a nonprofit organization regularly providing free or at a nominal price clothing and household furnishings to people in need, upon that organization agreeing to identify and separately store the property for 30 days and to release the property to the tenant at no charge within the 30-day period. A landlord electing to use this procedure shall immediately post at the demised premises a notice containing the name and address of the property recipient, post the same notice for 30 days or more at the place where rent is received, and send the same notice by first-class mail to the tenant at the tenant's last known address. Provided, however, that the notice shall not include a description of the property."

SECTION 2.(b)  G.S. 42-25.9(h) reads as rewritten:

"(h)       If the total value of all property remaining on the premises at the time of execution of a writ of possession in an action for summary ejectment is less than one hundred dollars ($100.00), five hundred dollars ($500.00), the property shall be deemed abandoned five days after the time of execution, and the landlord may throw away or dispose of the property. Upon the tenant's request prior to the expiration of the five-day period, the landlord shall release possession of the property to the tenant during regular business hours or at a time agreed upon."

SECTION 3.  G.S. 42-26  reads as rewritten:

"§ 42-26.  Tenant holding over may be dispossessed in certain cases.

(a)        Any tenant or lessee of any house or land, and the assigns under the tenant or legal representatives of such tenant or lessee, who holds over and continues in the possession of the demised premises, or any part thereof, without the permission of the landlord, and after demand made for its surrender, may be removed from such premises in the manner hereinafter prescribed in any of the following cases:

(1)        When a tenant in possession of real estate holds over after his term has expired.

(2)        When the tenant or lessee, or other person under him, has done or omitted any act by which, according to the stipulations of the lease, his estate has ceased.

(3)        When any tenant or lessee of lands or tenements, who is in arrear for rent or has agreed to cultivate the demised premises and to pay a part of the crop to be made thereon as rent, or who has given to the lessor a lien on such crop as a security for the rent, deserts the demised premises, and leaves them unoccupied and uncultivated.

(b)        An arrearage in costs owed by a tenant for water or sewer services pursuant to G.S. 62-110(g) shall not be used as a basis for termination of a lease under this Chapter. Any payment to the landlord shall be applied first to the rent owed and then to charges for water or sewer service, unless otherwise designated by the tenant.

(c) 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."

SECTION 4.  G.S. 42-51 reads as rewritten:

"§ 42-51.  Permitted uses of the deposit.

(a)        Security deposits for residential dwelling units shall be permitted only for the following:

(1) The tenant's possible nonpayment of rent and costs for water or sewer services provided pursuant to G.S. 62-110(g), G.S. 62-110(g).

(2) damage Damage to the premises, including damage to or destruction of smoke detectors or carbon monoxide detectors.

(3) nonfulfillment of rental period,Damages as the result of the nonfulfillment of the rental period, except where the tenant terminated the rental agreement under G.S. 42-45, G.S. 42-45.1, or because the tenant was forced to leave the property because of the landlord's violation of Article 2A of the General Statutes or was constructively evicted by the landlord's violation of G.S. 42-42(a).

(4) any Any unpaid bills that become a lien against the demised property due to the tenant's occupancy, occupancy.

(5) The costs of re-renting the premises after breach by the tenant, including any reasonable fees or commissions paid by the landlord to a licensed real estate broker to re-rent the premises.

(6) The costs of removal and storage of the tenant's property after a summary ejectment proceeding orproceeding.

(7) court costs in connection with terminating a tenancy. Court costs.

(8) Any fee permitted by G.S. 42-46.

(b)        The security deposit shall not exceed an amount equal to two weeks' rent if a tenancy is week to week, one and one-half months' rent if a tenancy is month to month, and two months' rent for terms greater than month to month. These deposits must be fully accounted for by the landlord as set forth in G.S. 42-52."

SECTION 5.  G.S. 42A-11(b) reads as rewritten:

"(b)      The vacation rental agreement shall contain provisions separate from the requirements of subsection (a) of this section which shall describe the following as permitted or required by this Chapter:

(1)        The manner in which funds shall be received, deposited, and disbursed in advance of the tenant's occupancy of the property.

(2)        Any processing fees permitted under G.S. 42A-17(c).

(2a) Any cleaning fee permitted under G.S. 42A-17(d).

(3)        The rights and obligations of the landlord and tenant under G.S. 42A-17(b).

(4)        The applicability of expedited eviction procedures.

(5)        The rights and obligations of the landlord or real estate broker and the tenant upon the transfer of the property.

(6)        The rights and obligations of the landlord or real estate broker and the tenant under G.S. 42A-36.

(7)        Any other obligations of the landlord and tenant."

SECTION 6.  G.S. 42A-17 is amended by adding a new subsection to read:

"(d) A vacation rental agreement may include a cleaning fee, the amount of which shall be provided in the agreement, reasonably calculated to cover the costs of cleaning the residential property upon the termination of the tenancy."

SECTION 7.  The General Statutes Commission shall study and recommend to the 2012 Regular Session of the 2011 General Assembly changes to the General Statutes to provide for the orderly and expeditious removal by a landlord of the personal property of a deceased tenant where the heirs are not readily identifiable or available to take possession of that personal property. 

SECTION 8.  Section 7 of this act is effective when it becomes law.  The remainder of this act becomes effective October 1, 2011, and applies to all actions for summary ejectment filed on and after that date and to all residential rental agreements entered into on or after that date.