State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_93A > GS_93A-57

§93A‑57.  Release of liens.

(a)        Prior to anyrecordation of the instrument transferring a time share, the developer shallrecord and furnish notice to the purchaser of a release or subordination of allliens affecting that time share, or shall provide a surety bond or insuranceagainst the lien from a company acceptable to the Commission as provided forliens on real estate in this State, or such underlying lien document shallcontain a provision wherein the lienholder subordinates its rights to that of atime share purchaser who fully complies with all of the provisions and terms ofthe contract of sale.

(b)        Unless a time shareowner or a time share owner who is his predecessor in title agree otherwisewith the lienor, if a lien other  than a mortgage or deed of trust becomeseffective against more than one time share in a time share project, any timeshare owner is entitled to a release of his time share from a lien upon paymentof the amount of the lien attributable to his time share. The amount of the paymentmust be proportionate to the ratio that the time share owner's liability bearsto the liabilities of all time share owners whose interests are subject to thelien. Upon receipt of payment, the lien holder shall promptly deliver to thetime share owner a release of the lien covering that time share. After payment,the managing agent may not assess or have a lien against that time share forany portion of the expenses incurred in connection with that lien. (1983,c. 814, s. 1; 1985, c. 578, s. 12.)