Tag Archives: hoa

HOA Governing documents – Learn it, know it, live it

CC&Rs — The CC&Rs document is recorded (amendments also must be recorded), and therefore is also a public document. Associations often use unrecorded, unofficial copies, but official copies can be retrieved from the County Recorder.

CC&Rs (Covenants, Conditions and Restrictions) are a long contract automatically binding all owners, and the law holds each to have read, understood, and agreed to its contents… regardless of whether the owner actually did so.

CC&Rs cover how the property is used, maintained and repaired, and very much affects living in that association. There usually will be a section called “Use Restrictions,” listing a number of prohibited activities, although restrictions can also be located elsewhere in the document. Restrictions can range from pet limits to parking to rental restrictions. In multi-story condominium buildings, they may (and hopefully do) prohibit certain flooring surfaces. CC&Rs will also usually address what the HOA maintains and repairs and what is homeowner responsibility.

CC&Rs are amendable through a vote of the membership. However, the stated percentage of votes required for amendments is usually high, making amendment more difficult.

FYI: thinking of buying a condo with a VA loan?  The complex must be VA approved.

read more at: https://www.sandiegouniontribune.com/business/economy/sd-fi-hoa-0309-story.html

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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

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What to remember when considering an HOA property

With a homeowner association, people tend to over look the fact that a lot of home maintenance issues are not their problem, in most cases. The HOA is often responsible for all the big items that single family home owners fret about: the roof, foundation, outside of the home, landscaping.

The drawback is that you pay a monthly fee. If you consider how much they take off your hands in terms of responsibility, the fee is a good thing. Another possible drawback is that you will be involved with the HOA to review projects and plans and vote on decisions.

Buyers should review with their agents the reserves in the building as well as the projections for when major systems will need replacement. In conjunction with this, buyers should read all past meetings to see what’s being discussed in the HOA and how they handle issues. Is it a smooth-running HOA or are there issues?

Another item to review is their policies on rentals. These policies are subject to change, and if you plan on renting the place out while you go on a long trip, that may not be possible.

read more at: http://www.sfgate.com/realestate/article/Sound-Off-What-to-remember-when-considering-a-9228332.php

disclaimer: for information and entertainment purposes only