FREQUENTLY ASKED QUESTIONS

LEARN ABOUT

About AMS

Association Powers and Decision Making

Association Structure and Funds

Common Interest Developments (aka Homeowner Associations)

Common Interest Development (aka Homeowner Associations)

a

What is a Common Interest Development (CID)?

The term “Common Interest Development” (or “CID”) describes a form of real estate. This is where each owner holds exclusive rights to portions of the property called a unit or lot, and shared rights to portions of the property called the common area or common elements. The most numerous forms of CIDs are the condominium and the planned development. The two other types of CIDs, the stock cooperative and the community apartment, are far less common and are not discussed here.
a

What is in the Declaration of Covenants, Conditions and Restrictions (sometimes called the Declaration or the CC&Rs)?

CC&Rs describe the rights and obligations of the homeowners’ association and of each owner. CC&Rs are recorded with the county recorder of the county where the property is located, and automatically bind anyone who becomes an owner of the property after the CC&Rs are recorded. CC&Rs vary widely in content and length, but usually cover some of the following topics:

  • The boundaries of the common area and of each unit or lot;
  • The legal description of the property;
  • The allocation of association operating costs among the owners
  • The mechanism for collecting owner payments;
  • Allocation of owner voting rights;
  • Any restrictions on alienation of units; and
  • The rights and protection of mortgage lenders.
a

What is the difference between a condominium project and a planned unit development?

The determination of whether a property is developed as a condominium project or a planned unit development is usually based on the physical characteristics of the buildings. Projects with only vertically-stacked units are always condominiums. Projects with only detached homes are almost always planned unit developments. Projects involving horizontally attached homes, or a combination of different home types, can be formed as either condominiums or planned unit developments. The most significant difference between condominium projects and planned unit developments is the distinct nature of the individually owned and group owned portions of the property. The individually owned portion of a condominium is called the unit and typically consists of interior space within a defined set of walls, floors, and ceilings. Condominium owners also frequently have exclusive use of decks, patios, and parking areas. The individually owned portion of a planned development is called the lot and typically consists of a piece of land and everything on it. Condominiums have common elements, which are usually all the structural elements of the building(s) housing the units, and all land and exterior areas. The common areas in a planned development are usually streets, open space, and recreational facilities.
Condominium projects and planned unit developments also differ with respect to the form of joint ownership of common area or common elements. Title to the common elements in a condominium must be held by the owners in percentage shares of undivided interest. By contrast, title to the common area in a planned unit development is almost always held by the homeowners’ association.

Director Election and Term

Enforcement and Disputes

Insurance and Liability

A

Under what circumstances can an owner be held liable for personal injuries that occur in another home or in the common area?

If the personal injuries were caused by a property condition and not by the actions of a person, and if the association is incorporated, an individual owner should not be responsible for personal injuries that occur in another owner’s home or in the common area. If the association is unincorporated, an individual owner can be held responsible only if the association is responsible and unable to satisfy the claim, and then only if the association does not carry liability insurance meeting the statutory minimums.

Maintenance, Alteration, and Defects

Meetings and Decisions

Mortgages and Liens

Officers, Managers, and Committees

Owner Assessments

Ownership and Possession

Ownership and Possession

a

Does an owner have to give the HOA access to their home?

Most CC&Rs state that the homeowners’ association has the right to enter any unit or lot whenever necessary to fulfill the association’s duties. Among the duties that would justify entry are common area maintenance, verification of an owner’s compliance with owner maintenance requirements or alteration restrictions, and pet rules. Often, the CC&Rs will require that the association provide advance notice of the entry except in an emergency. When the CC&Rs are silent on these issues, both the right of entry, and the requirement for advance notice, would be implied.

a

What do the terms percentage interest and common interest mean?

The terms “percentage interest” and “common interest” are used only when the shared area is jointly owned by the individual owners (rather than by the association). In these cases, terms “percentage interest” and “common interest” refer to the percentage share of the common area/common element owned by an owner. An owner’s “percentage interest” or “common interest” does not necessarily determine that owner’s usage rights or cost responsibilities.

a

Who owns the common area in a homeowner association?

Title to the common area can be held by the homeowners’ association in a planned unit development or by the owners of percentage shares in a condominium. The decision is made by the developer at the time the governing documents are prepared and is very difficult to change later. To determine who owns the common area in an association, refer to the CC&Rs. The method of common area ownership has no significant consequences in a properly insured association. Note that in condominium projects, title to the common elements must be by undivided interest to all owners. The percentage held by each owner does not necessarily determine that owner’s usage rights or cost responsibility.

Use of Common Area

Use of Common Area

a

Are an HOA homeowner’s guests and tenants allowed to use common area recreational facilities?

An owner’s guests and tenants have the same common area usage rights as the owner unless the governing documents specifically provide otherwise. The owner is responsible for ensuring that his guests and tenants comply with all applicable association rules and can be liable for violations by his guests or tenants.

a

Is each owner entitled to use the common area, regardless of their ownership and assessment percentage?

Each owner in a condominium project or planned development is equally entitled to use all common area (other than Limited Common Elements) regardless of ownership or assessment percentage. However, governing documents may contain more specific requirements and limitations.

Scroll to Top