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All condominium associations are led by boards of directors, because the association is a corporation.
Some board members -- and too many owners -- fail to read the governing documents established to guide the business of the association. As a result, the board may not act in leadership mode, which can be a pitfall.
When owners fail to read their governing documents, or for whatever other reason, fail to pay their monthly assessments, the association may not have enough money to pay its communal bills. These services might include, sewer, water and other utilities, master policy insurance premiums, landscape expenses, preventative maintenance items, and so forth.
As a result, the condominium association can find itself in a crisis, whether caused by poor management or by a natural disaster, and have no guidance for surviving the crisis.
When an owner considers buying into a condominium, due diligence includes reading the governing documents, and the last three years worth of board meeting minutes and association financial reports.
A condominium association in crisis or on its way to a crisis caused by poor management can be easy to spot, and therefore avoid. Such an association would also be one to avoid, because it might not be able to recover from a natural disaster.
Finally, depending on the location of the condominium, -- state laws apply -- a new development's association can be in danger, because the association is not well formed, or is formed by the developer and does not effectively represent new owners.
Another Perspective
In many cases the association isn't sustained and no one is in charge. Many have been abandoned by their developers before a strong until owners association was established. No entity collects the common fees, no one is in charge of maintenance and upkeep, no one enforces the rules and regulations and no one is in charge of repairs. This has happened with many condo projects that were not completed before the market crashed in many regions. Also, many associations attract people who like to be in charge as an ego booster but do not follow through on their responsibilities.
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Are condominiums considered master associations?
No. A master association may contain multiple, separate condominium associations.
What has the author Robert I Shapiro written?
Robert I. Shapiro has written: 'Florida condominium law and practice' -- subject(s): Condominium associations, Condominiums, Forms, Law and legislation
What is the legal interest rate in NJ for condominium associations?
Your governing documents could specify the interest rate.
What has the author William D Clarke written?
William D. Clarke has written: 'The young pathfinder's book of oceans, streams, and glaciers' -- subject(s): Glaciers, Juvenile literature, Ocean, Rivers 'Field data for the Isaacs-Kidd Midwater trawl collections of Scripps Institute of Oceanography' -- subject(s): Isaacs-Kidd Midwater Trawl (Ship), Monsoon Expedition, Trawls and trawling
What has the author Marilyn Z Rutledge written?
Marilyn Z. Rutledge has written: 'Providing services to common interest realty associations' -- subject(s): Accounting, Condominium associations, Cooperative Housing, Homeowners' associations, Housing, Cooperative
Can you find property manager email addresses that deal with condominium associations in the US?
There are organizations in the US that specialize in community associations. Here are two:Community Associations NetworkCommunity Associations InstituteProperty managers that specialize in partnering with condominium associations are usually affiliated with an organization that treats owned communities differently from apartment complexes, because the property management processes and financial reporting formats are substantially different.There is no general email address list, but you may be able to find several in your locale by using the links, below.
Can a court appointed receiver create the condo association if the property is in ligation?
This is a complex question that will be best answered by an attorney licensed to practice in the state where the condominium is located, and/or where the property is in litigation. You can find an attorney who specializes in handling condominium associations -- as opposed to one that specializes in creating governing documents for new condominium projects for developers -- by contacting your state/ region's chapter of Community Associations Institute (CAI).
How do you contact Condominium Associations directly?
A condominium association is the business entity involved in condominium ownership. The condominium association is usually a non-profit corporation, and is listed with the Secretary of State in the state where the condominium community is located.The Secretary of State's records are usually public records.As well, residents and owners of a condominium community should know who sits on the association's board of directors, and their contact details.You can also contact a condominium association through its property manager.
Do condominium associations need workers comp?
Check your state laws, all states are different when it comes to worker's comp regulations.
What is the new insurance law for condo associations?
The answer depends on the state where the condominium is located.You can follow the link, below, and find the state you want.
Do Condominium associations have to have A Board of directors?
Yes, many (and maybe all) condominium associations have boards of directors. This style of real estate ownership -- an association -- is a business. The business is properly registered with the Secretary of State (the location of the community) as a corporation, usually a non-profit. Business require boards of directors in order to operate the business of the association.
What has the author Wayne S Hyatt written?
Wayne S. Hyatt has written: 'Protecting Your Assets' 'Protecting your assets while dancing with the gorilla' -- subject(s): Law and legislation, Homeowners' associations, Condominium associations
