Questions and answers on condos & townhouses. - Page 1 |
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may govern your conduct. This can substantially affect your ability to use your property. It could even restrict your ability to rent your unit to others. Before you purchase a townhouse or condo, you should carefully read the rules governing the project and consult your attorney if you have any questions. Q: What should I do if I disagree with the association’s rules? A: If a dispute arises between you and the association over any of the association’s rules, it may be necessary to resolve the matter in court. Just because a provision appears in the bylaws or rules does not automatically mean that it is enforceable. But in most cases, a rule will be upheld by the courts if it is considered “reasonable.” You may try to change the rules. Any change in the bylaws or rules and regulations of the homeowners’ association requires approval by the members of the association or its executive board. Each homeowner is entitled to vote. Q: What happens if I do not abide by the restrictive covenants, bylaws, or rules and regulations? A: In any condominium or townhouse development, an owner or the association may seek relief in court against another owner who violates the association’s covenants, bylaws, rules or regulations. In addition, company to take care of maintenance, collect dues and assessments, and carry out other day‑to‑day responsibilities of the homeowners’ association. The members of the association’s executive board and the staff of management companies are NOT required to be licensed by the N.C. Real Estate Commission or any other state agency so long as their management activities do not involve the sale or rental of units. However, licensed real estate brokers who manage homeowners’ associations must adhere to the N.C. Real Estate License Law and related rules. This includes keeping the collected funds of others in a trust account, and maintaining records of all collections and disbursement of these funds. Q: Can the homeowners’ association do anything about a developer who is causing problems in the development? A: If the developer is still in control of the association, it is unlikely that the association will be able to effectively take action against the developer; however, the individual homeowners may be able to take legal action against a controlling developer. If the developer is not in control, the association can treat the developer just as it would any other homeowner. The North Carolina Real Estate Commission P.O. Box 17100 Raleigh, North Carolina 27619-7100 919/875-3700 Web Site: www.ncrec.gov 15,000 copies of this public document were printed at a cost of $.XXX per copy. REC 3.31 12/1/11 owners in some condominiums and townhouses may be fined by the association in accordance with either the Planned Community Act or the Condominium Act. These Acts give associations fining authority over the owners of condominiums created on or after October 1, 1986, the owners of townhouses created on or after January 1, 1999, and owners of older condominiums and townhouses whose associations have properly subjected themselves to portions of the applicable Act. Even if an association has the right to impose a fine, no fine can be imposed until the owner is given notice of the alleged violation and an opportunity to defend against the charge at a hearing before the executive board of the association or a panel designated by the board. Once a violation is found and not corrected, the association may impose a fine up to $100.00 per day for each day the violation continues. And, if the owner fails to pay the fine and other charges assessed, the association can file a lien against the property of the offending owner and then sell the unit through a foreclosure process. Some problems may not be addressed by the covenants, bylaws, or rules and regulations. In such cases, you may have to contact a local law enforcement official or your own attorney for assistance. Q: What if I don’t pay my dues, assessments, fines, or other changes? A: If an owner fails to pay dues, fines, assessments or other lawfully imposed charges, the owner’s property is subject to foreclosure by the homeowners association (even if the owner’s property is fully paid for). Q: Can the homeowners’ association employ a management company to assist in managing my condo or townhouse complex? A: Yes. A homeowners’ association, through its executive board, will often employ a management over time. You should find out who has the authority to establish fees and assessments, whether there are any limits on the amount that can be charged, and the financial stability of the association. Are there sufficient dues/reserves to pay for larger expenditures in the future? Are there any pending or proposed assessments of property owners?. You are less likely to be shocked by fee increases if you have read this information prior to signing a purchase agreement. Q: Can an owner avoid paying assessments for the common expense of the property? A: No. All owners of condos (including the developer) must pay their share of common expenses. The same would also be true of townhouse owners if there is a clear and definite statement in the restrictive covenants specifying the purpose of the assessment and the authority of the homeowners’ association to collect the assessment. Q: Can the homeowners’ association tell me what I can and cannot do on my own property? A: To some degree. The law allows you great freedom to tailor the use of your property to your particular lifestyle. However, this freedom is not unlimited and is subject to certain restraints. A homeowners’ association (or the developer) may be authorized by the declaration to adopt bylaws or other rules and regulations which Questions and Answers on: Condos & TownHouses enforces the restrictive covenants. A homeowners’ association is usually established when the project is created. The association will have an elected executive board which will manage the association and perform such tasks as enforcing the rules and regulations and collecting the homeowners’ dues. The developer, however, usually remains in control of the association until the developer no longer owns a majority of the units (or no longer has the majority of the votes in the association), or until a predetermined deadline has passed. Q: Can my homeowners’ dues be increased? A: Yes. The common expenses of your development may include grounds’ upkeep, building maintenance, insurance premiums, property taxes and management fees, among other things. When these expenses go up, the cost is usually passed on to the property owners in the form of increased dues and assessments. The legal authority to increase dues and to assess homeowners should be set forth in the documents which govern the development. Prior to signing a contract to purchase a condominium or townhouse, you should examine the governing documents to determine the amount of maintenance fees and assessments you will be obligated to pay and whether they may increase
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Title | Questions and answers on condos & townhouses. - Page 1 |
Full Text | may govern your conduct. This can substantially affect your ability to use your property. It could even restrict your ability to rent your unit to others. Before you purchase a townhouse or condo, you should carefully read the rules governing the project and consult your attorney if you have any questions. Q: What should I do if I disagree with the association’s rules? A: If a dispute arises between you and the association over any of the association’s rules, it may be necessary to resolve the matter in court. Just because a provision appears in the bylaws or rules does not automatically mean that it is enforceable. But in most cases, a rule will be upheld by the courts if it is considered “reasonable.” You may try to change the rules. Any change in the bylaws or rules and regulations of the homeowners’ association requires approval by the members of the association or its executive board. Each homeowner is entitled to vote. Q: What happens if I do not abide by the restrictive covenants, bylaws, or rules and regulations? A: In any condominium or townhouse development, an owner or the association may seek relief in court against another owner who violates the association’s covenants, bylaws, rules or regulations. In addition, company to take care of maintenance, collect dues and assessments, and carry out other day‑to‑day responsibilities of the homeowners’ association. The members of the association’s executive board and the staff of management companies are NOT required to be licensed by the N.C. Real Estate Commission or any other state agency so long as their management activities do not involve the sale or rental of units. However, licensed real estate brokers who manage homeowners’ associations must adhere to the N.C. Real Estate License Law and related rules. This includes keeping the collected funds of others in a trust account, and maintaining records of all collections and disbursement of these funds. Q: Can the homeowners’ association do anything about a developer who is causing problems in the development? A: If the developer is still in control of the association, it is unlikely that the association will be able to effectively take action against the developer; however, the individual homeowners may be able to take legal action against a controlling developer. If the developer is not in control, the association can treat the developer just as it would any other homeowner. The North Carolina Real Estate Commission P.O. Box 17100 Raleigh, North Carolina 27619-7100 919/875-3700 Web Site: www.ncrec.gov 15,000 copies of this public document were printed at a cost of $.XXX per copy. REC 3.31 12/1/11 owners in some condominiums and townhouses may be fined by the association in accordance with either the Planned Community Act or the Condominium Act. These Acts give associations fining authority over the owners of condominiums created on or after October 1, 1986, the owners of townhouses created on or after January 1, 1999, and owners of older condominiums and townhouses whose associations have properly subjected themselves to portions of the applicable Act. Even if an association has the right to impose a fine, no fine can be imposed until the owner is given notice of the alleged violation and an opportunity to defend against the charge at a hearing before the executive board of the association or a panel designated by the board. Once a violation is found and not corrected, the association may impose a fine up to $100.00 per day for each day the violation continues. And, if the owner fails to pay the fine and other charges assessed, the association can file a lien against the property of the offending owner and then sell the unit through a foreclosure process. Some problems may not be addressed by the covenants, bylaws, or rules and regulations. In such cases, you may have to contact a local law enforcement official or your own attorney for assistance. Q: What if I don’t pay my dues, assessments, fines, or other changes? A: If an owner fails to pay dues, fines, assessments or other lawfully imposed charges, the owner’s property is subject to foreclosure by the homeowners association (even if the owner’s property is fully paid for). Q: Can the homeowners’ association employ a management company to assist in managing my condo or townhouse complex? A: Yes. A homeowners’ association, through its executive board, will often employ a management over time. You should find out who has the authority to establish fees and assessments, whether there are any limits on the amount that can be charged, and the financial stability of the association. Are there sufficient dues/reserves to pay for larger expenditures in the future? Are there any pending or proposed assessments of property owners?. You are less likely to be shocked by fee increases if you have read this information prior to signing a purchase agreement. Q: Can an owner avoid paying assessments for the common expense of the property? A: No. All owners of condos (including the developer) must pay their share of common expenses. The same would also be true of townhouse owners if there is a clear and definite statement in the restrictive covenants specifying the purpose of the assessment and the authority of the homeowners’ association to collect the assessment. Q: Can the homeowners’ association tell me what I can and cannot do on my own property? A: To some degree. The law allows you great freedom to tailor the use of your property to your particular lifestyle. However, this freedom is not unlimited and is subject to certain restraints. A homeowners’ association (or the developer) may be authorized by the declaration to adopt bylaws or other rules and regulations which Questions and Answers on: Condos & TownHouses enforces the restrictive covenants. A homeowners’ association is usually established when the project is created. The association will have an elected executive board which will manage the association and perform such tasks as enforcing the rules and regulations and collecting the homeowners’ dues. The developer, however, usually remains in control of the association until the developer no longer owns a majority of the units (or no longer has the majority of the votes in the association), or until a predetermined deadline has passed. Q: Can my homeowners’ dues be increased? A: Yes. The common expenses of your development may include grounds’ upkeep, building maintenance, insurance premiums, property taxes and management fees, among other things. When these expenses go up, the cost is usually passed on to the property owners in the form of increased dues and assessments. The legal authority to increase dues and to assess homeowners should be set forth in the documents which govern the development. Prior to signing a contract to purchase a condominium or townhouse, you should examine the governing documents to determine the amount of maintenance fees and assessments you will be obligated to pay and whether they may increase |