A. CREATION
An owners' association shall be established to fulfill requirements of the NC Condominium Act, NC Planned Community Act, or to accept conveyance and maintenance of all common elements (common areas) within a development. The owners' association shall be in legal existence prior to the conveyance, lease-option, or other long-term transfer of control of any unit or lot in the development.
B. CONVEYANCE
Where developments have common elements serving more than one dwelling unit, these areas shall be conveyed to the owners' association, in which all owners of lots in the development shall be members. All areas other than public street rights-of-way, other areas dedicated to the town, and lots shall be designated as common elements. In a condominium development the common elements shall be platted in accordance with the NC Condominium Act. In other developments, the fee-simple title shall be conveyed by the subdivider or developer to the owners' association prior to the sale of the first lot.
C. SUBDIVISION OR CONVEYANCE OF COMMON ELEMENTS
Common elements shall not subsequently be subdivided or conveyed by the property owners' association unless a revised final plat showing such subdivision or conveyance have been submitted and approved.
D. MINIMIZE NUMBER OF ASSOCIATIONS
Developments, whether including different land uses, different types of housing, or simply different sections, shall hold the number of owners' associations to a minimum. An association may establish different categories of membership, different budgets for the categories, and different rates of assessment when different kinds of services are provided to different categories. Smaller associations under an umbrella (master) association are permitted.
E. EXEMPTION FROM OWNERS' ASSOCIATION REQUIREMENT
A development involving only two units attached by a party wall (or two separate walls back-to-back) shall not be required to have common elements or an owners' association. Such developments without an owners' association shall establish a binding agreement between owners to govern any party walls and to ensure reciprocal easement rights needed for maintenance.
(Ord. passed 2-14-2017; Ord. passed 2-15-2022)