Condo owners’ associations may be required to adhere to different legal requirements based on common interest ownership acts or other state or local laws. A management team helps a condo owners’ association (COA) navigate acts and other regulations pertaining to condominium communities. Here is more information about understanding the legal aspects of condo association management:
Creating a Budget
Depending on state laws, a condo association operates as a non-profit organization. Legal requirements include having the association form a budget detailing future expenditures. This shows what the association plans to spend, and this income is typically generated from homeowner assessments.
A condo association management team is able to help the board create the budget; this includes identifying expenses, predicting expenditures, and analyzing past spending. A financial advisor offers guidance on necessary expenditures. Condo associations are responsible for maintenance requirements. They also create a community budget that includes costs for reserve projects, landscaping, and utilities.
Once the budget is created, state laws may require it to be ratified by the condo owners in the community. Adhering to the law includes providing notice of the proposed budget and meeting date by a specific deadline. A management team is able to help with community communication by sending meeting notices to condo owners.
Adhering to Governing Documents
The governing documents of a community detail operations and legal requirements; they include rules for common spaces and maintenance responsibilities. The community may need to follow documents that legally define the association as a corporation. The declaration goes over the homeowner and association responsibilities, and the rules and regulations review guidelines for noise complaints, parking, and home modifications.
Both condo owners and board members are required to follow the governing documents, and the association is responsible for enforcing compliance in the community. If the condo owner is in violation of the documents, such as being tardy in paying assessments, the board is required to notify the owner and offer an opportunity to resolve the issue. If the problem goes unresolved, the owner may be subject to a fine. Amendments are able to be made to the governing documents to clarify verbiage and reflect the current needs of the community. A condo management team can provide legal counsel or help your board find the appropriate attorneys.
Following Local Laws
State laws and local ordinances take precedence over governing documents. These laws help protect the rights of condo owners, and they require the board to operate fairly and allow community members to live peaceably. Board members are responsible for making sure that community rules and association actions comply with state and local laws and the governing documents. A condo management company can help the board navigate the state legal requirements and stay informed about changes to local laws.
Find Condo Association Management Services
Adhering to legal requirements helps prevent fines and other consequences; it also makes community management a smoother process. A condo management team is able to help the board navigate insurance requirements and address other legal questions. You can hire a company for complete management services or on an as-needed basis. Find a condo association management company today.
