Tag Archives: hoa

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

Posted on November 25, 2017 | Leave a comment

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.

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What to remember when considering an HOA property

Posted on November 2, 2016 | Leave a comment

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.

disclaimer: for information and entertainment purposes only

HOA Super lien pose perils for home buyers

Posted on June 1, 2015 | Leave a comment

Could some of the nearly 67 million Americans who live in communities governed by homeowner associations — condominiums, master-planned developments, cooperatives and others — face much tougher underwriting and higher interest rates when they apply for a mortgage?

That is the looming threat from the mortgage industry in areas where state laws give community associations “super-priority” liens on dwellings whose owners have not paid their assessments.

Super-priority liens give a community association the power to initiate foreclosures and get first crack at the proceeds from the sale of a delinquent dwelling unit, ahead of the traditional first-lien position held by the mortgage lender. Twenty-two states plus the District of Columbia currently have authority for super liens on their books, and all 50 states recognize homeowner association liens.

Homeowner associations argue that, like property taxes for local governments, assessments or dues on units fund the essential operations of the community. They are crucial to maintain the community’s buildings, roadways, parks, recreation centers and other amenities. When unit owners fail to make the payments, the shortfall must be made up by the rest of the owners, often through higher assessments.

Disclaimer: for information and entertainment purposes only

Tag Archives: hoa

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

What to remember when considering an HOA property

HOA Super lien pose perils for home buyers

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