What Makes Them Think They Can Do THAT? : The Gene Molloy Real Estate Blog

The Gene Molloy Real Estate Blog

Jun. 6, 2008 - What Makes Them Think They Can Do THAT?

Many a disgruntled new homeowner, having just moved into a community association with out being made aware of what they are getting into, has lamented over that question. Hopefully there is someone around who can answer that, but if not, let me give it a try.

If a community is being run properly most of the decisions made by its Board of Directors are not as arbitrary as they may seem. A community has certain legal obligations that are derived from many different sources. First and foremost there are federal, state and local statues and regulations that must be adhered to. There is a whole body of case law that attests to that. If you do not want to take my word for it just google court decisions regarding community associations. Then there are legal documents that are specific to each community association that bind the association and the owners. These documents would include declarations and by laws, rules and regulations, board resolutions, etc, etc.

As if that was not enough, there are lender requirements to contend with. Some lenders will balk at giving mortgages in a residential community that has too high of a percentage of non owner occupied, or investor owned unit. Getting an FHA loan in a community that has a first right of refusal built in to the declaration can sometimes be problematic.

Sometimes the decisions are based around standards that are set by other professional associations, like the American Institute of Certified Public Accountants for instance.

There are many outside sources that define the existence, activities, and actions of a community association and that, my friends, is what makes them think they can do THAT.

As always, if you have found yourself receiving my blog postings via e-mail, it is because I have either blogged about you personally, blogged about something I know is of interest to you, or I consider you to be a person of deep thinking and intellect and I would love to have you occasionally commenting on my blog. If you would like to be removed from the list simply send me an e-mail saying so.

Comments (0) :: Post A Comment! :: Permanent Link

Write a Comment

Your Name:

RealTown Members: Click here to login

Your E-Mail:

Your Website:

Subject:

Your Comment:

Notifications:

Notify me by email when new comments have been posted to this entry.

Privacy:

Private Comment - Do not publish this comment to the public.

Verification:

To verify that you are a human and not a script, please enter the verification word from the image into the box on the right.

Here you will find thoughts, opinions, rantings, ravings, news, views and other things I think you may find useful. I will publicly answer questions here, so that many may benefit from the curiosity of my visitors, community created content if you will. I am trying to attract "experts" in various fields to comment on different topics of interest, we will see.