HOAleader.com - Tip of the Week - March 11, 2011
Published: Fri, 03/11/11
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What's a Declaration? CC&R? Know Your HOA Governing Documents
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Quick! Do rules and regs trump your HOA's declaration? And what
if your declaration conflicts with your bylaws? This week's tip
gives critical info for understanding your governing documents.
"I see people confused about their governing documents all the
time," says Michael S. Hunter, an attorney and partner at Horack
Talley Pharr & Lowndes PA in Charlotte, N.C., who represents
associations. "People all the time talk about bylaws, saying,
'Our bylaws say this,' and what they really mean is their CC&Rs.
I know it's really more of a matter of semantics, but a lot of
board members don't grasp the concept that their association is
a corporation and needs to be operated as such."
Jenny Key also sees befuddlement over that bundle of association
legal documents. "I see confusion, particularly among
homeowners," says the Austin, Texas-based vice president of
RealManage, a San Rafael, Calif., association management firm
that oversees properties in Arizona, California, Colorado,
Florida, Louisiana, Nevada, and Texas. "Usually board members
have some understanding of the governing documents by the time
they're interested in serving on the board. But even then,
people may call the governing documents different things, like
'the documents,' 'the use restrictions,' or 'the rules and
regs.'"
To clear up confusion, here's a general overview of your CC&Rs:
CC&Rs -- "The declaration of covenants, conditions, and
restrictions (CC&Rs) are recorded with the register of deeds in
the initial phase of development of a townhome or planned
community," Hunter explains. "The CC&Rs govern what an owner
may, may not, or must do with respect to the real estate. In
them, you'll typically find things like a description of the
property covered by the CC&Rs, language establishing an HOA, a
protocol for levying annual and special assessments for common
expenses, and a description of the common areas and amenities."
For an overview of bylaws and rules and regs, and to learn which
governing documents trump the others, see our new article:
http://www.hoaleader.com/members/551.cfm
Best regards,
Matt Humphrey
President
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