§ 42A-19. Transfer of property subject to a vacation rental agreement.
§ 42A‑19. Transfer ofproperty subject to a vacation rental agreement.
(a) The grantee ofresidential property voluntarily transferred by a landlord who has entered intoa vacation rental agreement for the use of the property shall take title to theproperty subject to the vacation rental agreement if the vacation rental is toend not later than 180 days after the grantee's interest in the property isrecorded in the office of the register of deeds. If the vacation rental is toend more than 180 days after the recording of the grantee's interest, thetenant shall have no right to enforce the terms of the agreement unless thegrantee has agreed in writing to honor those terms, but the tenant shall beentitled to a refund of payments made by him or her, as provided in subsection(b) of this section.
Prior to entering into anycontract of sale, the landlord shall disclose to the grantee the time periodsthat the property is subject to a vacation rental agreement. Not later than 10days after transfer of the property, the landlord shall disclose to the granteeeach tenant's name and address and shall provide the grantee with a copy ofeach vacation rental agreement. In lieu of providing the grantee a copy of eachvacation rental agreement, where the landlord or the landlord's agent utilizesa standard form vacation rental agreement, the landlord may provide the granteewith a copy of the part of each vacation rental agreement that containsinformation unique to the tenancy, the amount to be paid by the tenant, and theparties' signatures, along with one copy of the rest of the standard formvacation rental agreement. However, the landlord shall not be required toprovide the grantee with copies of the vacation rental agreements if inanticipation of acquiring the property the grantee has engaged the landlord'srental agent to continue to manage the property after the transfer and thelandlord authorizes the rental agent to provide the information to the granteeand the grantee approves. Not later than 20 days after transfer of theproperty, the grantee or the grantee's agent shall:
(1) Notify each tenantin writing of the property transfer, the grantee's name and address, and thedate the grantee's interest was recorded.
(2) Advise each tenantwhether he or she has the right to occupy the property subject to the terms ofthe vacation rental agreement and the provisions of this section.
(3) Advise each tenantof whether he or she has the right to receive a refund of any payments made byhim or her.
Notwithstanding any otherprovision of this section, if the grantee engages as the grantee's broker andrental agent for the property the broker who procured the tenant's vacationrental agreement for the landlord, the grantee shall have no obligation undersubdivisions (1), (2), and (3) of this subsection with regard to those tenantswhose vacation rental agreements must be honored under this section or withregard to those tenants whose vacation rental agreements the grantee has agreedin writing to honor.
(b) Except as otherwiseprovided in this subsection, upon termination of the landlord's interest in theresidential property subject to a vacation rental agreement, whether by sale,assignment, death, appointment of receiver or otherwise, the landlord or thelandlord's agent, or the real estate broker, shall, within 30 days, transferall advance rent paid by the tenant, and the portion of any fees remainingafter any lawful deductions made under G.S. 42A‑16, to the landlord'ssuccessor in interest and thereafter notify the tenant by mail of such transferand of the transferee's name and address. For vacation rentals that end morethan 180 days after the recording of the interest of the landlord's successorin interest, unless the landlord's successor in interest has agreed in writingto honor the vacation rental agreement, the landlord or the landlord's agent,or the real estate broker, shall, within 30 days, transfer all advance rentpaid by the tenant, and the portion of any fees remaining after any lawfuldeductions made under G.S. 42A‑16, to the tenant. Compliance with thissubsection shall relieve the landlord or real estate broker of furtherliability with respect to any payment of rent or fees. Funds held as a securitydeposit shall be disbursed in accordance with G.S. 42A‑18.
(c) Repealed by SessionLaws 2000‑140, s. 41, effective July 21, 2000.
(d) The failure of alandlord to comply with the provisions of this section shall constitute anunfair trade practice in violation of G.S. 75‑1.1. A landlord whocomplies with the requirements of this section shall have no furtherobligations to the tenant. (1999‑420, s. 1; 2000‑140, s. 41; 2005‑292,s. 2.)