Are you familiar with and understand the unique role of the legal documents pertaining to your HOA or condo? An association’s governing documents define the framework, rules, and standards for your association and all its members. But what exactly are these documents, and how do they relate to one another? Let’s break down the key documents that regulate community associations and explain how they affect both the association and individual homeowners.
The Main Legal Documents
Plat: All subdivisions require the preparation, approval and recording of a plat. The plat for a community association will identify the lots/units subject to separate ownership and the common area.
Declaration of Covenants, Conditions and Restrictions (“CC&Rs”): The CC&Rs are the enabling documents that create the covenants and restrictions that run with the land and are binding on all current and successive owners. This document is recorded with the county recorder’s office before an owner purchases a lot/unit in a community association.
Articles of Incorporation: The articles of incorporation establish the association as a legal entity with the Arizona Corporation Commission. It is advisable to incorporate a community association to limit the liability of individual members for the acts of the association by incorporating.
Bylaws: The bylaws are used for the internal government and operation of the association. The bylaws typically define composition, election and appointment of the board of directors, and the “how to” run the association specifics.
Rules and Regulations: The board is usually empowered in the CC&Rs or bylaws to adopt rules and regulations regarding the community association’s common areas and/or behavior by residents within the community. If rules and regulations conflict with the CC&Rs or bylaws, the rules and regulations are unenforceable. Rules and regulations must be reasonable, easy to understand and consistent with the authority given regarding rule-making in the CC&Rs and/or Bylaws.
How These Documents Work Together (The Hierarchy)
Conflicts or ambiguities sometimes arise between documents. The general hierarchy is:
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Plat
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CC&Rs
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Articles of Incorporation
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Bylaws
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Rules and Regulations
Whenever uncertainty occurs—for example, a rule about pets that seems at odds with something in the CC&Rs—the higher-ranking document prevails. Use this hierarchy to guide your decisions and resolve disputes so that your actions remain legally compliant.
Our firm suggests that all board members take a quick spin (15-20 minute read) through all the association documents for their community at least once a year to familiarize themselves with the documents (so they know where to look when questions arise).
If you have any questions regarding association documents, the hierarchy of association documents or if you need help interpreting your association’s documents, please contact Beth Mulcahy, Esq. at Mulcahy Law Firm, P.C. at info@mulcahylawfirm.com.
