Governing Documents: Overview
The CID is a legal body that has as its primary obligation to preserve and protect the assets of the community. Part of this obligation is the fair and uniform enforcement of all deed restrictions as set out by the governing documents. In order to meet its obligation to maintain itself in perpetuity, the community association has the right to assess (tax) its members for these costs. This right is important, because without it the community would have no way to enforce this obligation.
First time association unit owners may not always fully understand that the rights and obligations of a community association member go beyond maintenance assessments. The rights and obligations cover areas from what color the exterior of a house can be painted to whether or not the American flag can be flown outside the owner’s unit. Members (the unit owner) typically are imposed with these rights and obligations from the moment they buy the property, which do not cease for so long as the member owns property.
Membership in the CID is both a right and a responsibility. For residential CIDs, by acquiring the home or condominium a member agrees to abide by the rules of the governing documents of the development. It is the same for members in a commercial space CID, whether it is in retail space, commercial office space, or medical office buildings. All members of the CID are subject to rights and restrictions imposed on members of the community association by the governing documents.
Finally, it is very important to note that many local requirements, such as municipal or state law, will shape how the governing documents are developed and the CID is formed.
Legal Issue: Check city and state government Web sites for current legislation governing common property. Oversight of CID compliance with these laws may mean, depending on your state, checking these sites more than once annually, as these laws can be amended frequently.
Comments
Georgia does not specifically require that HOA managers be licensed, but does require that there is a broker for the firm for all 3rd-party fee management. The state does offer a Community Association Manager license to futher insulate the qualifiying broker of the company and to improve the compentency of the management community as a whole. I require all of my community managers to be licensed.
States like Nevada have very strict licensing laws for Association Managers. Be certain to check out licensing requirements before venturing into management activities.
- Lori Burger | Flag this comment for review