So, you've decided to buy a condominium. Here are some facts you should know about homeowners association documents:
1. What are CC&Rs? The covenants, conditions and restrictions (CC&Rs) are the governing documents that dictate how the homeowners association operates and what rules the owners -- and their tenants and guests -- must obey. These legal documents might also be called the bylaws, the master deed, the houses rules or another name. These documents and rules are legally enforceable by the homeowners association, unless a specific provision conflicts with federal, state or local laws.
Want to give your home a new look? Find advice and inspiration in our decorating section.
2. Suppose I don't like the rules. Can they be changed? Most rules are easy to accept, but some may strike a nerve. Such issues as pets, parking spaces, recreational facilities and subleasing can prove quite controversial.
The procedure for changing the rules should be explained in the governing documents. A majority vote or, in some cases, a super-majority, will be required. Changing existing rules is rarely easy. "Attendance is always a problem at [association] meetings," warns Michael J. Wolfe, president of Midboro Management, Inc., a residential property management company in New York City. "There is always a group of people who care and show up and another group [of people] who do not care and say they are too busy. A lot of times, there isn't enough attendance at a meeting to change a rule, even if 100 percent of the attendees [want to change it]."
3. What are the consequences of breaking a rule? Penalties might include fines, forced compliance, a lawsuit by the association, the misery of being at odds with your neighbors and emotional distress. For example, suppose an owner attempts to sneak a large dog into a condominium unit despite a rule specifying a maximum weight for pets. He or she might be forced to get rid of the dog in addition to facing fines and a lawsuit. Read the rules thoroughly before you buy an association-governed home.
4. What are the most important provisions in the governing documents? Review the association's operating budget and make sure the complex isn't losing money. Ask for copies of any engineering, architectural or structural inspection reports. Pay attention to provisions governing the election of board members, subleasing and restrictions on remodeling your own unit.
5. Do I need an attorney to explain the CC&Rs to me? It's always a good idea to seek legal counsel if you have questions about the governing documents or rules. Wolfe suggests reading the documents yourself and preparing a list of questions, then asking your attorney to interpret anything you don't understand.
So, you've decided to buy a condominium. Here are some facts you should know about homeowners association documents:
1. What are CC&Rs? The covenants, conditions and restrictions (CC&Rs) are the governing documents that dictate how the homeowners association operates and what rules the owners -- and their tenants and guests -- must obey. These legal documents might also be called the bylaws, the master deed, the houses rules or another name. These documents and rules are legally enforceable by the homeowners association, unless a specific provision conflicts with federal, state or local laws.
Want to give your home a new look? Find advice and inspiration in our decorating section.
2. Suppose I don't like the rules. Can they be changed? Most rules are easy to accept, but some may strike a nerve. Such issues as pets, parking spaces, recreational facilities and subleasing can prove quite controversial.
The procedure for changing the rules should be explained in the governing documents. A majority vote or, in some cases, a super-majority, will be required. Changing existing rules is rarely easy. "Attendance is always a problem at [association] meetings," warns Michael J. Wolfe, president of Midboro Management, Inc., a residential property management company in New York City. "There is always a group of people who care and show up and another group [of people] who do not care and say they are too busy. A lot of times, there isn't enough attendance at a meeting to change a rule, even if 100 percent of the attendees [want to change it]."
3. What are the consequences of breaking a rule? Penalties might include fines, forced compliance, a lawsuit by the association, the misery of being at odds with your neighbors and emotional distress. For example, suppose an owner attempts to sneak a large dog into a condominium unit despite a rule specifying a maximum weight for pets. He or she might be forced to get rid of the dog in addition to facing fines and a lawsuit. Read the rules thoroughly before you buy an association-governed home.
4. What are the most important provisions in the governing documents? Review the association's operating budget and make sure the complex isn't losing money. Ask for copies of any engineering, architectural or structural inspection reports. Pay attention to provisions governing the election of board members, subleasing and restrictions on remodeling your own unit.
5. Do I need an attorney to explain the CC&Rs to me? It's always a good idea to seek legal counsel if you have questions about the governing documents or rules. Wolfe suggests reading the documents yourself and preparing a list of questions, then asking your attorney to interpret anything you don't understand.