GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2017

SESSION LAW 2018-50

SENATE BILL 224

AN ACT to allow landlords to recover out‑of‑pocket expenses in summary ejectment cases.

The General Assembly of North Carolina enacts:

SECTION 1.1.(a)  G.S. 42‑46(h)(3) reads as rewritten:

"(3)      It is contrary to public policy for a landlord to put in a lease or claim any fee for filing a complaint for summary ejectment and/or money owed other than the ones expressly authorized by subsections (e) through (g) and (i) of this section, and a reasonable attorney's fee as allowed by law."

SECTION 1.1.(b)  G.S. 42‑46 is amended by adding two new subsections to read:

"(i) Out‑of‑Pocket Expenses. – In addition to the late fees referenced in subsections (a) and (b) of this section and the administrative fees of a landlord referenced in subsections (e) through (g) of this section, a landlord is also permitted to charge and recover from a tenant the following actual out‑of‑pocket expenses:

(1) Filing fees charged by the court.

(2) Costs for service of process pursuant to G.S. 1A‑1, Rule 4 of the North Carolina Rules of Civil Procedure and G.S. 42‑29.

(3) Reasonable attorneys' fees actually incurred, pursuant to a written lease, not to exceed fifteen percent (15%) of the amount owed by the tenant, or fifteen percent (15%) of the monthly rent stated in the lease if the eviction is based on a default other than the nonpayment of rent.

(j) The out‑of‑pocket expenses listed in subsection (i) of this section are allowed to be included by the landlord in the amount required to cure a default."

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

In the General Assembly read three times and ratified this the 14^th day of June, 2018.

                                                                    s/  Philip E. Berger

                                                                         President Pro Tempore of the Senate

                                                                    s/  Tim Moore

                                                                         Speaker of the House of Representatives

This bill having been presented to the Governor for signature on the 14^th day of June, 2018 and the Governor having failed to approve it within the time prescribed by law, the same is hereby declared to have become a law. This 25^th day of June, 2018.

                                                                    s/  Karen Jenkins

                                                                         Enrolling Clerk