What are HOA CC&Rs; and other associations governances and why you should know before you buy

Associations typically have five different documents that very much affect association living and governance. In addition to CC&Rs ( Covenants, Conditions, and Restrictions), most associations have Articles of Incorporation, bylaws, operating rules and either a condominium plan or subdivision map. Unfortunately, most homeowners in common interest communities do not read these documents before they close escrow.

A corporation is created when articles of incorporation are filed with the state. In earlier years, articles of incorporation often contained significant limitations on association and board powers. However, all common interest development associations are not incorporated, and those will not have articles. Not all incorporated associations use their legal name. The bylaws will usually on the first page state the association’s correct name and indicate whether it is a corporation. The Secretary of State can provide a duplicate copy of articles, and its web site will indicate if the corporation is still in good standing – visit www.businesssearch.sos.ca.gov.

Bylaws, unlike articles of incorporation, are not filed with any public agency. Bylaws address governance topics such as the powers and limitations of the board, information on membership meetings, and board eligibility. Bylaws should not address the property, but how the corporation governs.

read more at: http://www.sandiegouniontribune.com/business/economy/sd-fi-hoa-1125-story.html

disclaimer: for information and entertainment purposes only

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s