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28 Cards in this Set
- Front
- Back
three defining characteristics of a community association
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1. membership is mandatory/automatic
2. certain documents bind all owners to be governed 3. mandatory lien-based assessments are levied t |
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other names for a community association
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CIC = common interest community
CIRA = common interest realty association CID = common interest development |
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three types of residential comm assocs
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1. planned community (most)
2. condominium 3. cooperative |
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characteristics of a planned community
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- owner owns his unit
- community owns common areas such as tennis courts, roads, etc. - other names include HOA, OA, Townhouse association, Property owners association (POA) or PUD (planned unit development) |
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characteristics of a condominium
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- individual owns his or unit
- individual has an undivided interest in the common elements of the community; each owns a percentage of the common elements - the comm assoc itself owns no real estate |
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characteristics of a cooperative
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- individual owns stock or membership in the cooperative
- holds a proprietary lease or occupancy agreement for unit |
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proprietary lease/occupancy agreement
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defines members right in relations to the unit; the comm assoc owns all of the real estate as a non-profit
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associations can exist by themselves or be grouped in what two clusters
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- master/umbrella association
- mixed use development |
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master/umbrella association
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consists of more than one residentail community association
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mixed use development
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consists of a mixture of res/commercial/industrial
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sources of legal obligations for a CA
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-federal, state and local statutes
- legal docs for CA - lender requirements (i.e. set by mortgage institutions) - standards set by professional bodies (i.e. auditing standards) |
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three types of state statutes
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- general
- specific - uniform |
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general state statutes
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applies to CAs as well as other types of organizations
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specific state statutes
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applies only to one or more types of CAs (i.e. a condominium act which provides for est. and operation of condos as legal entitites)
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uniform state statutes
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an attempt to standardize specific state statutes that apply to CA's
ex: uniform condominium act |
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governing documents
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define rights and obligations of owners and CA; create binding relationship between the two; establish mechanism for governing and funding
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hierarchy of governing documents
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- recorded map, plat, or plan
- declaration, CC&Rs, master deed, proprietary lease/occupancy agreement - articles of incorporation (if) - bylaws - board resolutions |
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recorded map, plat, or plan
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recorded in County Recorder's office before any units are sold to show the precise location of each and the common areas; helps define owner's title to property
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declaration, cc&rs, master deed
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covenants/deeds defines the bundle of rights of each owner; attach to the land no matter who owns it
rather than draw it up for each individual unit, it is a chain of title for each piece of real estate |
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what do the dec, cc&R, master deed DO
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= defines portions of devleopment owner by owners/CA
= creates relationships binding owners to one another and hte CA = est. protective standards, restrictions, obligations = creates admin framework for operation and management (specific details pselled out in bylaws) = provides for a transition of control of CA from developer to owners |
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proprietary lease/occupancy agreement - in terms of governing doc hierarchy
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= defines member's rights and obligations in relation to the living unit (in a coop, this serves same purpose as declaration)
ex): defines terms of lease and rent, defines events which would result in termination of lease |
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articles of incorporation
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helps limit liability of individual owners; entitles CA to the rights granted to all corporations under law (helpful for obtaining insurance, brining suit against another party)
indicates whether there will be a board of directors |
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bylaws
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= formally adopted governing regs for administration and managemetn of a CA
address things such as requirements for membership, voting rights, procedures for electing board, general powers and duties of board |
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indemnify - definition
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exempt an individual or entity from responsibility for claims made against the organization and reimburse them for damages/expenses incurred as a result of such claims
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resolutions
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resolutions establish rules and regs = they're a motion that follows a set format and is formally adopted by the board
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four types of resolutions
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- policy (affect owners rights and obligations)
- administrative (address internal operations) - special (apply rule to a specific situation) - general (involve routine events i.e. adoption of annual budget) |
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book of resolutions
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orderly, indexed record of resolutions
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public offering statement
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not a governing document it is a disclosure statement that provides info on CA to prospective buyers mandated by state statute
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