Read the full stored bill text
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
SESSION LAW 2025-75
HOUSE BILL 992
*H992-v-7*
AN ACT TO CREATE A T IMESHARE TRUSTEE FOR ECLOSURE PROCESS FOR
CERTAIN DELINQUENT A SSESSMENTS FOR TIMES HARES LOCATED IN THI S
STATE AND TO CHANGE THE PROCESS FOR ESTA BLISHING PATERNITY O F
CHILDREN BORN OUT OF WEDLOCK.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 93A-62 reads as rewritten:
"§ 93A-62. Delinquent assessments; developer guarantee.
(a) Delinquent assessments may bear interest at the highest rate permitted by law or at
some lesser rate established by the managing entity. In ad dition to interest, the managing entity
may charge a reasonable administrative late fee for each delinquent assessment. Any costs of
collection, including reasonable collection agency fees and reasonable attorney's fees, incurred
in the collection of a delinquent assessment shall be paid by the owner and shall be secured by a
lien in favor of the managing entity upon the timeshare with respect to which the delinquent
assessment has been incurred.
(b) The managing entity may deny the use of the timeshare uni ts or facilities, including
the denial of the right to make a reservation or the cancellation of a confirmed reservation for
timeshare periods, to any owner who is delinquent in the payment of any assessments made by
the managing entity against the owner for common expenses, in accordance with the following:
(1) The managing entity must, no less than 30 days after the date the assessment
is due, notify the owner in writing of the total amount of any delinquency
which then exists, including any accrued inter est and late charges permitted
to be imposed under the terms of the timeshare program or by law and
including a per diem amount. The notice shall be sent to the owner at the
owner's known address as recorded in the books and records of the timeshare
program.
(2) The notice shall clearly state that the owner will not be permitted to use the
owner's timeshare, that the owner will not be permitted to make a reservation
in the timeshare program's reservation system, or that any confirmed
reservation may be canc eled until the total amount of such delinquency is
satisfied in full or until the owner produces satisfactory evidence that the
delinquency does not exist.
(3) The notice shall be effective to bar the use of the owner and those claiming
use rights under the owner, including the owner's guests, lessees, and persons
receiving use rights in the timeshare through an exchange program; provided,
however, that (i) a managing entity desiring to deny the use of the timeshare
to persons receiving use rights in the delinquent owner's timeshare through an
exchange program that has an affiliation agreement with the managing entity
shall notify the affiliated exchange company in writing of the denial of use at
the time that the notice was sent to the owner and (ii) any pe rson claiming
through the affiliated exchange program who has received a confirmed
Page 2 Session Law 2025-75 House Bill 992
assignment of the delinquent owner's use rights from the affiliated exchange
company prior to the expiration of 48 hours after the receipt by the affiliated
exchange company of the written notice from the managing entity shall be
permitted by the managing entity to use the owner's use rights.
(4) Any costs reasonably incurred by the managing entity in connection with its
compliance with the requirements of this section may be assessed by the
managing entity against the delinquent owner and collected in the same
manner as if those costs were common expenses of the timeshare program
allocable solely to the delinquent purchaser.
(5) A managing entity may not enforce the denial of use against any one owner
or group of owners without similarly enforcing it against all owners, including
all developers.
(c) In addition to the denial of use pursuant to subsection (b) of this section, the managing
entity may give further notice to the d elinquent owner that the managing entity may rent the
delinquent owner's timeshare, or any use rights appurtenant thereto, in accordance with the
following:
(1) A further notice of intent to rent must be given no less than 30 days after the
date the assess ment is due and must be delivered to the purchaser in the
manner required for notices under subsection (b) of this section.
(2) The notice shall state that unless the owner satisfies the delinquency in full, or
unless the owner produces satisfactory evidence that the delinquency does not
exist, the purchaser will be bound by the terms of any rental contract entered
into by the managing entity with respect to the owner's timeshare or
appurtenant use rights.
(3) The notice shall state that the owner will rema in liable for any difference
between the amount of the delinquency and the net amount produced by the
rental contract and applied against the delinquency, and the managing entity
shall not be required to provide any further notice to the owner regarding any
residual delinquency.
(4) The managing entity's efforts to secure a rental shall not commence on a date
earlier than 10 days after the date of the notice of intent to rent.
(5) The managing entity must apply the proceeds of any rental, net of any rental
commissions, cleaning charges, travel agent commissions, or any other
commercially reasonable charges reasonably and usually incurred by the
managing entity in securing rentals to the delinquent owner's account.
(6) A managing entity may make a reasonable determination regarding the
priority of rentals of timeshares and, if the delinquent owner whose timeshare
is rented cannot be specifically determined due to the structure of the
timeshare program, the managing entity may allocate any net rental proceeds
in any reasonable manner.
(7) In securing a rental, the managing entity shall not be required to obtain the
highest nightly rental rate available, nor any particular rental rate, and the
managing entity shall not be required to rent the entire timeshare or
appurtenant rights; however, the managing entity must use reasonable efforts
to secure a rental that is commensurate with other rentals of similar timeshares
or use rights generally secured at that time.
(d) For timeshare estates located in this State, the managing entity shall have a lien on a
timeshare for any assessment levied against that timeshare from the date such assessment
becomes due. The managing entity shall also have a lien on a timeshare estate of any owner for
the cost of any maintenance, rep airs, or replacement resulting from an act of the owner or the
House Bill 992 Session Law 2025-75 Page 3
owner's guest or lessee that results in damage to the timeshare property. All of the following
apply to a lien imposed under this section:
(1) The managing entity, or the holder of the lien, ma y bring a judicial action in
its name to foreclose the lien in the nature of an action to foreclose a mortgage
or deed of trust and may also bring an action to recover a money judgment for
the unpaid assessments without waiving any claim of lien. As an alt ernative
to initiating a judicial action, the managing entity entity, or the holder o f the
lien, may initiate a nonjudicial timeshare trustee foreclosure proceeding
pursuant to G.S. 93A-62.1 to foreclose the assessment lien.
(2) The lien is effective from the date of and shall relate back to the recording of
the original timeshare declaration, or, in the case of lien on a timeshare located
in a phase timeshare program, the last to occur of the recording of the original
timeshare declaration or amendment cre ating the timeshare. However, as to
first mortgages of record, the lien is effective from and after filing of the claim
of lien in the office of the clerk of superior court in the county where the
timeshare estate is located.
(3) The claim of lien shall st ate the name of the timeshare program and identify
the timeshare for which the lien is effective, state the name of the owner, state
the assessment amount due, and state the due dates. The claim of lien shall be
signed and acknowledged by an officer or agent of the managing entity or the
holder.holder of the lien. The claim of lien shall contain the following
statement in print that is in boldface, capital letters , and no small er than the
largest print used elsewhere in the document:
"THIS DOCUMENT CONSTITUTES A LIEN AGAINST YOUR PROPERTY, AND IF
THE LIEN IS NOT PAID, THE ASSOCIATION MAY PROCEED WITH FORECLOSURE
AGAINST YOUR TIMESHARE IN THE NATURE OF AN ACTION TO FORECLOSE A
MORTGAGE OR DEED OF TRUST OR A TIMESHARE TRUSTEE FORECLOSURE
UNDER NORTH CAROLINA LAW."
(4) The lien shall expire upon the earlier of:
a. The date it is satisfied.
b. Five years from the date the claim of lien is filed unless an action to
enforce or foreclose the lien is commenced within that time.
(5) A claim of lien for assessments may include assessments which are due when
the claim is recorded and all assessments that subsequently become due and
are delinquent. Upon full payment, the person making the payment is entitled
to receive a satisfaction of the lien.
(6) A judgment in any judicial action or suit brought to foreclose the claim of lien
may include costs and reasonable attorney's fees for the substantially
prevailing party. For a timeshare trustee foreclosure brought pursuant to this
section, the managing entity or the holder of the lien shall be entitled to
recover its costs, including reasonable attorney's fees and trustee's fees.
(e) A Except in the event of a timeshare trustee foreclosure conducted in accordance with
G.S. 93A-62.1, a successor in interest, regardless of how the timeshare has been acquired,
including a purchaser at a judicial sale or foreclosure trustee sale, is jointly and severally liable
with their predecessor in interest for all unpaid assessments against the predecessor up to the time
of transfer of the timeshare to a successor, without prejudice to any right a successor in interest
may have to recov er from their predecessor in interest any amounts assessed against the
predecessor and paid by the successor; provided, however, a first mortgagee or its successor or
assignee who acquires title to a timeshare as a result of the foreclosure of the mortgage or by
deed in lieu of foreclosure of the mortgage shall be exempt from liability for all unpaid
assessments attributable to the timeshare or chargeable to the previous owner which came due
Page 4 Session Law 2025-75 House Bill 992
prior to acquisition of title by the first mortgagee. In the event of a timeshare trustee foreclosure,
owners who do not object to use of the timeshare trustee foreclosure procedure, as provided in
G.S. 93A-62.1(e), shall not be subject to a deficiency judgment even if the proceeds from the
sale of the timeshare are insufficient to offset the amounts secured by the lien, and any successor
to the owner that acquires title to a timeshare as a result of a timeshare trustee foreclosure under
G.S. 93A-62.1 shall be exempt from liability for all unpaid assessments attributable to the
timeshare or chargeable to the previous owner that came due prior to acquisition of title by the
successor.
(f) If the developer agrees to guarantee the level of assessments for the timeshare
program for any period of time, the developer may be excused from the payment of the
developer's share of the assessments that otherwise would have been assessed against
developer-owned timeshares during the guarantee period, provided that the developer guarantees
that (i) during the guarantee period the assessments against owner timeshares will not increase
over the dollar amount stated in the adopted, good-faith budget of the timeshare program and (ii)
the developer will pay any amount by which all common expenses incurred during the guarantee
period exceed the total revenues of the timeshare program during the guarantee period."
SECTION 2. Article 4 of Chapter 93A of the General Statutes is amended by adding
a new section to read:
"§ 93A-62.1. Procedure for timeshare trustee foreclosure of assessment liens.
(a) This section is intended to provide, as an alternative to judicial foreclosure, a simple
and inexpensive method of enforcing payment of assessments, to the knowledge of all persons,
and recognize, in authorizing this timeshare trustee foreclosure proceeding, that all persons
owning a timeshare know or should know that the assessment lien on their timeshare may be
foreclosed and the timeshare sold for failure to pay assessments.
(b) A claim of lien complying with the requirements of G.S. 93A-62(d)(3) and subsection
(d) of this section must be filed in the office of the clerk of the superior court of the county in
which the timeshare is located in the manner provided in this section.
(c) No fewer than 15 days prior to filing the claim of lien, the managing entity or the
holder of the lien shall mail a statement of the assessment amount due by first -class mail to the
owner's address as recorded in the books and records of the timeshare program. If the record
owner is a corporation or limited liability company, the statement shall also be sent by first-class
mail to the mailing address of the registered agent for the corporation or limited liability
company. Notwithstanding any provision of this Chapter to the contrary, there shall be no
requirement that notice under this subsection be mailed to an owner's timeshare unit or otherwise
posted at the timeshare project. The managing entity or the holder of the lien shall make diligent
efforts to ensure that its records contain the unit owner's mailing address.
(d) The person signing the c laim of lien on behalf of the holder shall attach to and file
with the claim of lien a certificate, that has been signed and sworn to or affirmed before a notary
public, certifying that notice of the lien was sent to the record owner and those entitled to receive
notice, pursuant to both of the following methods: (i) by registered or certified mail, return receipt
requested, or by designated delivery service pursuant to 2 6 U.S.C. § 7502(f)(2) with a delivery
receipt requested and (ii) by mailing a copy of the lien by regular, first-class mail, postage prepaid
to the owner's known address as recorded in the books and records of the timeshare program. As
used in this section, "delivery receipt" includes an electronic or facsimile receipt.
(e) The managing entity, holder of the lien, or designated trustee filing the certificate
provided for in subsection ( h) of this section shall, at least 30 days prior to docketing the
judgment, send notice of the assessment lien foreclosure to the owner in the same manner as a
claim of lien under subsection (d) of this section to the owner at the owner 's known address as
recorded in the books and records of the timeshare program and to all lienholders with liens that
have attached after the effective date of the timeshare claim of lien filed in accordance with
subsection (b) of this section. The notice required by this subsection shall (i) state that a judgment
House Bill 992 Session Law 2025-75 Page 5
will be docketed and the proposed date of the docketing, (ii) state that the judgment will authorize
a sale of the timeshare pursuant to a timeshare trustee foreclosure proceeding, (iii) provide a brief
description of the timeshare affected, (iv) include the filing information for the claim of lien if
previously filed with the clerk of the superior court, and (v) state that the lien may be satisfied
prior to judgment being entered. The notice shall also include a n objection form that the owner
can use to object to use of the timeshare trustee foreclosure process within 30 days of receipt of
the notice by signing and returning the objection form to the managing entity, holder of the lien,
or designated trustee, and in such event the lien may thereafter only be foreclosed by filing a
judicial foreclosure action. The objection form described in this subsection shall iden tify the
owner, the timeshar e interest, and the return address of the trustee and shall state : "The
undersigned owner exercises the owner 's right to object to the use of the timeshare trustee
foreclosure procedure contained in G.S. 93A-62.1." The notice required by this subsection ma y
be combined with the notice of lien required to be given pursuant to subsection (d) of this section
and shall also contain a statement in substantially the following form:
"You may choose to sign and send to the trustee the enclosed objection form, exercising your
right to object to the use of the timeshare trustee foreclosure procedure. Upon the trustee's receipt
of your signed objection form, the foreclosure of the lien with respect to the default specified in
this notice shall be subject to the judicial foreclosure procedure only. If you do not object to the
use of the timeshare t rustee foreclosure procedure, you will not be subject to a deficiency
judgment, even if the proceeds from the sale of your timeshare interest are insufficient to offset
the amounts secured by the lien."
(f) If, within 10 days following the mailing of the notice required by subsection ( e) of
this section, a return receipt or delivery receipt has not been received by the managing entity,
holder of the lien, or designated trustee indicating receipt of the notice, then the managing entity,
holder of the lien, or designated trustee shall have a notice published in a newspaper of general
circulation in the county where the timeshare is located once a week for two consecutive weeks
directed to, and naming, all unnotified lienholders and the owner that a judgment will be docketed
against the owner.
(g) All costs of mailing and publication, plus a charge of two hundred fifty dollars
($250.00) to defray administrative costs, shall be added to the amount of assessments that are a
lien on the timeshare and shall be paid by the owner to the managing entity or holder of the lien
at the time the assessments are collected or the timeshare is sold.
(h) Except as provided in subsection (s) of this section, no sooner than six months since
the indebtedness described in the claim of lien became due and after filing the claim of lien , the
managing entity, holder of the lien, or designated trustee may foreclose the lien by filing a
certificate, that has been signed and sworn to or affirmed before a notary public, with the clerk
of the superior court, showing the following: (i) the record owner of the timeshare on which there
is a lien for unpaid assessments, together wit h the amount of assessments, including taxes,
penalties, interest, and costs that are covered by the lien , (ii) the year or years for which the
assessments are due, (iii) a description of the timeshare sufficient to permit its identification by
parol testimony, and (iv) the filing information for the claim of lien if previously filed with the
clerk of the superior court. The fees for docketing and indexing of the certificate assessed
pursuant to G.S. 7A-308(a)(11) are payable to the clerk of the superior court at the time the
certificate is filed.
(i) Immediately upon the docketing and indexing of a certificate as provided in
subsection (h) of this section, the assessments, including taxes, penalties, interest, and costs,
constitute a valid judgment agains t the timeshare described in the judgment with the priority
provided for claims of lien in G.S. 93A-62(d)(2). The judgment, except as expressly provided in
this section, has the same force and effect as a duly rendered judgment of the superior court
directing sale of the timeshare for the satisfaction of the assessment lien, and it shall bear interest
at an annual rate of eight percent (8%).
Page 6 Session Law 2025-75 House Bill 992
(j) At any time prior to the issuance of a certificate of sale in accordance with subdivision
(8) of subsection (l) of this section, any person entitled to notice under this section may appear
before the clerk of superior court and move to set aside the judgment on the ground that the
assessment has been paid or that the assessment lien on which the judgment is based is invalid.
(k) Upon payment in full of any judgment docketed under this section, together with
interest and costs accrued to the date of payment, the managing entity, holder of the lien, or
designated trustee receiving payment shall certify the fact of the payment to the clerk of superior
court and cancel the judgment.
(l) At any time after 30 days and before one year from the indexing of the judgment as
provided in subsection (h) of this section, at the request of the managing entity or holder of the
lien, the timeshare shall be sold by a trustee in a public auction held in the county in which the
timeshare project is located on the date, location, and starting time desi gnated in the noti ce of
sale sent in accordance with this subsection. The trustee's sale shall occur at a location consistent
with G.S. 45-21.4. The timeshare trustee foreclosure sale shall be conducted in accordance with
the following:
(1) The managing entity or the holder of the lien shall appoint a trustee, who shall
conduct the sale and act as the auctioneer. The appointment of the trustee shall
be included in the claim of lien or the certificate. The managing entity or the
holder of the lien, at its option, may from time to time remove a trustee
previously appointed and appoint a successor trustee by filing a substitution
of trustee with the clerk of superior court. Counsel for the managing entity or
for the holder of the lien may be appointed by the managing entity or by the
holder of the lien to serve as the trustee and may serve in that capacity as long
as the owner does not contest the obligation to pay the amount of any sums
due the managing entity or the holder of the lien, or the validity, enforcement,
or foreclosure of the claim of lien as provided in subsection (e) of this section.
A trustee appointed pursuant to this subsection shall have the same fiduciary
duties and obligations as a trustee in the foreclosure of a deed of trust and is a
neutral third party. While serving as trustee in the foreclosure proceed ing, a
trustee may not advocate for the managing entity or the holder of the lien or
the owner of the timeshare subject to foreclosure. The trustee shall be entitled
to a commission for services rendered which shall include fees, costs, and
expenses reasonably incurred by the trustee in connection with the timeshare
trustee foreclosure procedure, whether or not a sale is held. The trustee 's
commission shall be paid without regard to any limitations on compensation
otherwise provided by law, including, without limitation, the provisions of
G.S. 45-21.15. The trustee may use a third party to conduct the sale on behalf
of the trustee and the trustee is liable for the conduct of the sale and the actions
of the third party with respect to the conduct of the sale.
(2) At least 30 days prior to the day fixed for the timeshare trustee foreclosure,
the trustee shall send notice by registered or certi fied mail, return receipt
requested, or by designated delivery service pursuant to 26 U.S.C. §
7502(f)(2) with a delivery receipt requested, to the owner at the owner 's
known address as recorded in the books and records of the timeshare program,
in lieu of personal service, and to all lienholders that received notice under
subsection (e) of this section . If within 10 days following the mailing of the
notice of the sale a return receipt or delivery receipt has not been received by
the trustee indicating receipt of the notice, then the trustee shall have notice
published in a newspaper in the same manner as described in subsection (f) of
this section.
(3) The notice of sale shall contain at least all of the following:
House Bill 992 Session Law 2025-75 Page 7
a. The name and address of the owner and any junior interest holders.
b. The legal description of the timeshare.
c. The name and address of the trustee.
d. A description of the default that is the basis for the judgment.
e. The filing information for the claim of lien and judgment.
f. The amounts secured by the lien and a per diem amount to account for
further accrual of the amounts secured by the lien.
g. The date, location, and starting time of the trustee's sale.
h. The right and method by which the owner may cure the default and the
right of any junior interest holder to redeem its interest up to the date
the trustee issues a certificate of sale in accordance with subdivision
(8) of this subsection.
(4) The trustee shall add to the amount of the judgment as costs of the sale any
postage or advertising expenses incurred by the managing entity, holder of the
lien, or designated trustee in foreclosing under this section.
(5) The managing entity, holder of the lien, and any other person other than the
trustee may bid at the sale. In lieu of participating in the sale, the lienholder
may send the trustee written bidding instructions that the trustee shall
announce as appropriate during the sale.
(6) The trustee may postpone the sale from time to time. In such case, notice of
postponement must be given by the trustee at the date, time, and location
contained in the notice of sale. The notice of postponed sale shall be given in
accordance with subdivision (2) of this subsection.
(7) The highest bidder at the sale shall pay the price bid to the trustee in cash or
certified funds on the day of the sale. If the managing entity or holder of the
lien is the highest bidder, the lienholder shall receive a credit up to the amount
set forth in the notice of sale, as described in subdivision (3) of this subsection.
(8) On the date of sale and upon receipt of the cash or certi fied funds due from
the highest bidder, the trustee shall issue to the highest bidder a certificate of
sale stating that a foreclosure conforming to the requirements of this section
has occurred. The certificate shall include the time, location, and date o f the
sale, that the timeshare was sold, the amounts secured by the lien, and the
amount of the highest bid. A copy of the certificate shall be mailed by
first-class mail to the owner's address as recorded in the books and records of
the timeshare program. Upon issuance of a certificate of sale, all rights of
redemption are foreclosed and shall terminate.
(m) A sale conducted under this section releases the owner from liability for all amounts
secured by the lien. The managing entity or holder of the lien h ave no right to a deficiency
judgment against the owner after a sale of the owner's timeshare under this section.
(n) Within 10 calendar days after the trustee conducts a sale under this section, the trustee
shall execute and file with the clerk of superior court, a certificate of compliance that has been
signed and sworn to or affirmed before a notary public . In furtherance of the execution of the
certificate of compliance required under this subsection, the trustee is entitled to rely upon an
affidavit or certification from the managing entity or holder of the lien as to the facts and
circumstances of default and failure to cure the default. The certificate of compliance shall
contain the following:
(1) A confirmation of delivery of the claim of lien and notice of timeshare trustee
foreclosure.
(2) A statement that the default was not cured prior to the sale, that the trustee did
not receive any written objection under subsection (e) of this section, and that
Page 8 Session Law 2025-75 House Bill 992
the timeshare was not redeemed under sub -subdivision h. of subdivision ( 3)
of subsection (l) of this section.
(3) A confirmation that the notice of sale was delivered to the owner or published
prior to the sale.
(o) At least 10 calendar days after a sale conducted under this section , absent the prior
filing and service on the trustee of a judicial action to enjoin issuance of the trustee's deed to the
highest bidder, the trustee shall issue a trustee's deed to the highest bidder and record the trustee's
deed in the public records of the county in which the timeshare is located. The trustee's deed shall
include the name and address of the trustee, the name and address of the highest bidder, the name
of the former owner, and a legal description of the timeshare. The trustee's deed shall contain no
warranties of title from the trustee. The trustee 's deed conveys to the highest bidder all rights,
title, and interest in the timeshare that the former owner had, or had the power to convey, at the
time of the recording of the claim of lien, together with all rights, title, and interest that the former
owner or the owner's successors in interest acquired after the recording of the claim of lien.
(p) The trustee shall apply the proceeds of the sale as follows:
(1) To the expenses of the sale, including compensation of the trustee in
accordance with this section.
(2) To the amount owed and set forth in the notice of sale.
(3) If there are junior interest holders, the trustee may pay the surplus to the clerk
of superior court , naming the competing junior interest holders, and the
payment to the clerk discharges the managing entity, holder of the lien, or
trustee from liability to the extent of the amount paid. A special proceeding
may be instituted in accordance with G.S. 45-21.32 to determine who may be
entitled to the surplus.
(4) If there are no junior interest holders, or if all junior interest holders have been
paid, any surplus shall be paid to the former owner.
(q) The certificate of compliance and the trustee's deed together are presumptive evidence
of the truth of the matters set forth in them, and action to set aside the sale and void the trustee's
deed may not be filed or otherwise pursued against any person acquiring the timeshare interest
for value. The issuance and recording of the trustee 's deed is presumed valid and may be relied
upon by third parties without actual knowledge of irregularities in the foreclosure proceedings.
If for any reason there is an irregularity in the foreclosure proceedings, a purchaser becomes
subrogated to all the rig hts of the lienholder to the indebtedness that it secured to the extent
necessary to re -foreclose the assessment lien in order to correct the irregularity and becomes
entitled to an action de novo for foreclosure of such assessment lien. Any subsequent
re-foreclosure required to correct an irregularity may be conducted under G.S. 93A-62.1.
(r) The managing entity, holder of the lien, or designated trustee may combine the claim
of lien, certificate, notice of sale, certificate of compliance, published notice s and other
documents part of the timeshare trustee foreclosure procedure against timeshares of different
owners if both of the following criteria are met:
(1) All timeshares are part of the same timeshare project.
(2) The declaration giving rise to the right of the managing entity to collect
assessments creates default and remedy obligations that are substantially the
same for each owner named in the timeshare trustee foreclosure proceeding.
(s) A claim of lien securing a debt consisting solely of fines imposed by the managing
entity, interest on unpaid fines, or attorneys ' fees incurred by the managing entity solely
associated with fines imposed by the managing entity may be enforced by judicial foreclosure ,
as provided in Article 29A of Chapter 1 of the General Statutes. In addition, any claim of lien
securing a debt consisting solely of service, collection, consulting, or administration fees may
only be enforced by judicial foreclosure, as provided in Article 29A of Chapter 1 of the General
Statutes.
House Bill 992 Session Law 2025-75 Page 9
(t) All foreclosure proceedings commenced by a managing entity or the holder of the
lien before March 1, 2026, and all sales and transfers of real property as part of those proceedings
pursuant to the provisions of this Chapter, Chapter 47A of the General St atutes, or provisions
contained in a timeshare declaration are declared to be valid unless an action to set aside the
foreclosure is commenced on or before March 1, 2026, or within one year after the date of the
foreclosure sale, whichever occurs last."
SECTION 3. G.S. 29-19 reads as rewritten:
"§ 29-19. Succession by, through and from children born out of wedlock.
…
(b) For purposes of intestate succession, a child born out of wedlock shall be entitled to
take by, through and from:
(1) Any person who h as been finally adjudged to be the father of the child
pursuant to the provisions of G.S. 49-1 through 49 -9 or the provisions of
G.S. 49-14 through 49-16;49-16.
(2) Any person who has acknowledged himself during his own lifetime and the
child's lifetime to be the father of the child in a written instrument executed or
acknowledged before a certifying officer named in G.S. 52-10(b) and filed
during his own lifetime and the child's lifetime in the office of the clerk of
superior court of the county where either he or the child resides.G.S. 52-10(b).
…."
SECTION 4. G.S. 130A-101(f) reads as rewritten:
"(f) If the mother was unmarried at all times from date of conception through date of birth,
the name of the father shall not be entered on the certificate unles s the child's mother and father
complete an affidavit acknowledging paternity which contains the following:
(1) A sworn statement by the mother consenting to the assertion of paternity by
the father and declaring that the father is the child's natural father and that the
mother was unmarried at all times from the date of conception through the
date of birth;
(2) A sworn statement by the father declaring that he believes he is the natural
father of the child;
(3) Information explaining in plain language the effect of signing the affidavit,
including a statement of parental rights and responsibilities and an
acknowledgment of the receipt of this information; and
(4) The social security numbers of both parents.
The State Registrar, in consultation with the Chil d Support Enforcement Section of the
Division of Social Services, shall develop and disseminate a form affidavit for use in compliance
with this section, together with an information sheet that contains all the information required to
be disclosed by subdivision (3) of this subsection.
Upon the execution of the affidavit, the declaring father shall be listed as the father on the
birth certificate, subject to the declaring father's right to rescind under G.S. 110-132. The
executed affidavit shall be filed wi th the registrar along with the birth certificate. In the event
paternity is properly placed at issue, a certified copy of the affidavit shall be admissible in any
action to establish paternity. The surname of the child shall be determined by the mother, except
if the father's name is entered on the certificate, the mother and father shall agree upon the child's
surname. If there is no agreement, the child's surname shall be the same as that of the mother.
The execution and filing of this affidavit with the registrar does not affect rights of inheritance
unless the affidavit is also filed with the clerk of court in accordance with G.S. 29-19(b)(2)."
Page 10 Session Law 2025-75 House Bill 992
SECTION 5. Sections 1 and 2 of this act become effective December 1, 2025, and
apply to claims of lien filed on or after that date. Sections 3 and 4 of this act become effective
December 1, 2025, and apply to the estates of decedents dying on or after that date. The remainder
of this act is effective when it becomes law.
In the General Assembly read three times and ratified this the 30th day of June, 2025.
s/ Phil Berger
President Pro Tempore of the Senate
s/ Donna McDowell White
Presiding Officer of the House of Representatives
s/ Josh Stein
Governor
Approved 10:03 a.m. this 9th day of July, 2025