North Carolina G.S. 47F-3-110: HOA Voting and Proxy Limits

Quick Answer

G.S. 47F-3-110 sets voting and proxy rules for planned community associations. A proxy must be dated, it ends 11 months after its date unless it states a shorter term, and an owner can revoke it only by actual notice to the person presiding. It also covers co-owners, leased lots, association-owned lots and sub-group voting.

At a Glance

What the Law Says

• Co-owners (a). If only one co-owner of a lot is present, that owner "is entitled to cast all the votes allocated to that lot." If several are present, votes are cast by agreement of a majority in interest, unless the declaration or bylaws expressly provide otherwise. Agreement is "conclusively presumed" if any one co-owner casts the votes and no other co-owner makes a prompt protest to the person presiding.
• Proxies (b). Votes may be cast by a "duly executed" proxy. Each co-owner may vote or register a protest through a proxy. An owner may revoke a proxy only "by actual notice of revocation to the person presiding over a meeting." A proxy "is void if it is not dated" and "terminates 11 months after its date, unless it specifies a shorter term."
• Lessees (c). If the declaration requires certain votes to be cast by lessees, subsections (a) and (b) apply to them, owners who leased the lot cannot cast those votes, and lessees get notice, records access and other rights on those matters. Owners must still be notified of meetings where lessees may vote.
• Association-owned lots (d). "No votes allocated to a lot owned by the association may be cast."
• Sub-group votes (e) and (f). The declaration may limit voting on specified issues to a defined subgroup only if the issue is of special interest solely to that subgroup, and all but de minimis cost is assessed solely to those voting. An issue is not of solely subgroup interest if it "substantially affects the overall appearance of the planned community" or the living conditions of other owners.

What This Means in Practice

For boards and managers

The two traps are undated proxies and expired proxies. Our reading: a proxy collected 12 months before a meeting is outside the statute's 11-month limit and should not be counted. Log the date each proxy was signed and check it against the meeting date. Co-owner disputes are resolved at the meeting, so the presiding officer should ask for any protest before counting a lot's votes.

For owners

An owner who gave a proxy and wants to vote in person should notify the presiding officer in writing or on the record. Revocation by telling the proxy holder alone is not what the statute describes.

What the law does not say

• It does not address electronic voting, mail ballots or electronic proxies. Those depend on the bylaws and other law, such as Chapter 55A. Open question: whether e-signatures satisfy "duly executed"; confirm with counsel.
• It does not set quorum, which is in G.S. 47F-3-109.

Timeline

Related North Carolina Law

• G.S. 47F-3-108 to 3-110: meetings, quorum and voting
• G.S. 47F-3-103: board, budget ratification and removal
• G.S. 47F-2-117: declaration amendments
• Chapter 55A: Nonprofit Corporation Act
• North Carolina HOA laws complete guide

Board Checklist

• Collect proxies on a form with a date line, and reject undated forms.
• Record each proxy's date and compare it to the meeting date (11-month limit).
• Check whether a shorter term is written on the proxy.
• Tell the presiding officer to ask for any co-owner protest before counting.
• Make sure no association-owned lot votes are counted.
• Check your declaration before holding any sub-group vote.
• Have counsel review any electronic voting procedure.

Frequently Asked Questions

How long is a proxy valid in a North Carolina HOA?

11 months from its date, unless it specifies a shorter term.

Is an undated proxy valid?

No. The statute says a proxy is void if it is not dated.

How does an owner revoke a proxy?

By actual notice of revocation to the person presiding over a meeting.

What if co-owners disagree on how to vote?

If several are present, votes are cast by a majority in interest, unless the documents say otherwise. If one casts the votes and nobody protests promptly, agreement is conclusively presumed.

Can the association vote lots it owns?

No.

Does this section allow online voting?

It does not address it. Check your bylaws and ask counsel.

Where We Stand

Our position: we support this law. A dated, time-limited proxy and a clear revocation rule make election results easier to defend. Tip: build the date and expiry into the proxy form and keep a proxy log with the election records. This is Association Property Managers' operating view as a management company, separate from the legal summary above, and it is not legal advice.

Where This Comes From

This page is based on the text of G.S. 47F-3-110 and G.S. 47F-1-102 in Chapter 47F on ncleg.gov. We did not read court decisions on this section or the condominium counterpart.

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Legal disclaimer: This article is general information, not legal advice. Laws change and associations differ. Confirm the current statute text and how it applies to your governing documents with a licensed North Carolina attorney before acting.