Power to Create a Common-Interest Community Association
A common-interest community is a real-estate development with lots that are under an obligation to pay certain fees. The obligation may be to share costs for use and maintenance of common property or to pay fees to an association that basically manages the neighborhood. The document that creates the community and describes the obligations is a declaration. Sometimes, however, the circumstances of creating the community may imply an obligation. A common-interest community may create an association, unless the declaration does not allow it. The association manages the common property and enforces the obligations. Once an association is created, all members of the community automatically become members of the association.
The developer may create an association. However, the other lot owners should be able to prevent or control the creation of an association if they relied on its absence when they bought the lots, or if the developer wants some unfair advantage. The owners of the majority lots (excluding the developer) may also create an association on their own. In addition, the owners of less than a majority of lots may petition a court to allow for an association. The court will authorize the creation of an association if it finds the association necessary for the management of common property. A government body may also petition a court to permit an association. But, the government body must either benefit from the owners’ obligations or be responsible if the owners do not fulfill them. For example, a city approves the creation of a common-interest community, but requires that the developer attach an obligation to pay a road-maintenance fee to each lot. The owners then refuse to pay the fees and claim that the city should take care of the roads. The city may then petition for, and the court may authorize, the creation of an association to manage the maintenance of the roads.
This site and any information contained herein is intended for informational purposes only and should not be construed as legal advice. Seek a competent attorney for advice on any legal matter.
The developer may create an association. However, the other lot owners should be able to prevent or control the creation of an association if they relied on its absence when they bought the lots, or if the developer wants some unfair advantage. The owners of the majority lots (excluding the developer) may also create an association on their own. In addition, the owners of less than a majority of lots may petition a court to allow for an association. The court will authorize the creation of an association if it finds the association necessary for the management of common property. A government body may also petition a court to permit an association. But, the government body must either benefit from the owners’ obligations or be responsible if the owners do not fulfill them. For example, a city approves the creation of a common-interest community, but requires that the developer attach an obligation to pay a road-maintenance fee to each lot. The owners then refuse to pay the fees and claim that the city should take care of the roads. The city may then petition for, and the court may authorize, the creation of an association to manage the maintenance of the roads.
This site and any information contained herein is intended for informational purposes only and should not be construed as legal advice. Seek a competent attorney for advice on any legal matter.
Posted by Ryan McCabe at 2/4/2009 9:04 PM 
Categories: Common-Interest Community Association, Creating an Association
Categories: Common-Interest Community Association, Creating an Association
Comments