AN ACT to clarify the effect of marketable record title upon restrictive covenants in the marketable title act.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 47B‑3 reads as rewritten:

§ 47B‑3.  Exceptions.

Such marketable record title shall not affect or extinguish the following rights:

(1)        Rights, estates, interests, claims or charges disclosed by and defects inherent in the muniments of title of which such 30‑year chain of record title is formed, provided, however, that a general reference in any of such muniments to rights, estates, interests, claims or charges created prior to such 30‑year period shall not be sufficient to preserve them unless specific identification by reference to book and page of record be made therein to a recorded title transaction which imposed, transferred or continued such rights, estates, interests, claims or charges.

…

(12)      Rights, estates, interests, claims or charges with respect to any real property registered under the Torrens Law as provided by Chapter 43 of the General Statutes of North Carolina.

(13)      Covenants Restrictive covenants applicable to a general or uniform scheme of development which restrict the property to residential use only, single‑family or multifamily residential development, provided said covenants are otherwise enforceable. The excepted covenant may restrict the property to multi‑family or single‑family residential use or simply to residential use. Restrictive covenants other than those mentioned herein which limit the property to residential use only in this subdivision are not excepted from the provisions of Chapter 47B.this Chapter.

(14)      Notwithstanding anything in this section to the contrary, provisions contained in any declaration of covenants that are applicable to any of the following:

a.         A condominium created under Chapter 47A or 47C of the General Statutes of North Carolina.

b.         A cooperative, as defined in G.S. 47F‑1‑103(8).

c.         A planned community, other than a planned community in which all lots are restricted exclusively to nonresidential purposes, whenever created, to which any of the provisions of Chapter 47F of the General Statutes of North Carolina apply; provided, however, that if such planned community was created prior to January 1, 1999, this exemption shall not apply unless it is governed by an owners' association in existence as of July 1, 2022.

SECTION 2.  This act is effective when it becomes law.