Chapter 1 Q & A Flashcards
Define a community association and its three key characteristics
Mandatory/automatic membership
Documents bind owners to be governed under the comm. Assoc.
Charges/assessments are levied on each owner to support association operations.
What is the purpose of a community association?
Provide governance, business, and community to association
maintain/enhance residential real estate development
Define the three basic types of residential community associations in terms of ownership rights.
Planned Community - most common; owners own lot/unit; association owns common areas
Condominium - owners owns unit; undivided interest in common elements
Cooperative - Individual owns stock; individuals holds lease/occupancy agreement for
Unit
What sources create legal obligations for community associations?
Fed, State, Local - statutes, regulations, laws
Legal documents (assoc.)
Lender requirements (as set by mortgage)
Professional Standards
Explain the difference between general, specific, and uniform state statutes and give an example of each.
General: Apply to organizations broadly
Specific: Applies ONLY to comm. Assoc. ; regulates development & sale; provides protection to owners and tenants; regulates operation
Uniform: Standardizing of comm. Assoc. Statues only applying to these communities
What is the purpose of governing documents for a community association?
Define rights, obligations
Create a binding relationship with owners
Establish mechanisms for governing/funding assoc. Rules/standards to protect, enhance, and promote quality living
List the basic governing documents for a community association.
Map, plat, plan Declaration, CC&R;s, Master Deed, Lease, Occup. Agreement Articles of Inc. Bylaws Board Resolutions
What is the purpose of a recorded map, plat, or plan in terms of the legal rights and obligations of owners and the community?
Help define owner’s vs. communities title to property
How does this document affect a community assoc.?
ID who is responsible for maintaining aspects of property
Determine if property improvement is properly located
What purpose does a declaration, CC&Rs or a master deed serve for a condominium or planned community?
Declaration: ALL Brings community into existence
CC&R: provide/limit owner rights
Master Deed: condominium document, chain of title for piece of real estate.
What is the purpose of a proprietary lease or occupancy agreement in cooperative?
COOPERATIVE - defines the member or stockholders rights and obligations in relation to living unit.
How does this document affect a cooperative’s activities?
IDs exclusive occupancy premises
Defines term of lease for rent
Empowers board of directors
Defines details of lease termination
What is the purpose of articles of incorporation?
Corporation into existence
Define basic purposes and powers
Indicate stock if available
IDs board
What are the benefits to incorporating a community association?
Limit liability of owners actions towards comm. Assoc.
Entitles comm. Assoc. To have rights as corporations
Allows for ease in dealing with outside parties
What areas of community association activity do bylaws typically address?
Membership, Meetings, Voting, Procedures (board), Procedures (elections), Powers (board), Indemnification in the event of negligence or misconduct
