WHAT KIND OF LEGAL POWER DO
HOAS HAVE TO ENFORCE THEIR
RULES?
or sometimes you can get a copy from the get payment. When conducting meetings, it is
estate agent who sold the home. recommended that the board use a guide like
Robert’s Rules of Order. This will allow orderly
The main source of legal authority allowing Home owners who disagree with a rule should participation of HOA members, and assist
an HOA to enforce its rules comes from the address concerns to the board. Rules can be the board in reaching decisions on important
recorded MOI, and is bound by the Companies amended or revoked if they are unreasonable, issues.
Act. Because the documents are recorded unnecessary or simply unwanted by most with the registrar, property owners become owners. revocation It is not uncommon for volunteer board
legally bound by the valid provisions of will require a member vote at an AGM or a members to have little experience in running
these documents when they purchase their properly constituted special general meeting. an HOA. For this reason, it is important that all
properties. provide Voting requirements are usually found in the directors become familiar with the governing
additional legal authority not contained in the documents. If owners disagree with a rule, documents.
HOA’s documents. HOA actions are usually and are unsuccessful in getting it amended or outline the steps necessary for proper action,
upheld in court if the authority is provided in revoked after following the proper procedures some situations may require guidance from
the documents, or by statute, and the board within the HOA, the owners can always bring a someone with more experience. Most HOAs
acts reasonably in carrying out the authority. legal action to declare the rule unenforceable. employ a management team to assist with
However, this could become very expensive. administrative duties. Experienced attorneys
HOA
rules
may
also
HOW DO I KNOW THE RULES IF I
The
amendment
or
While
the
documents
often
also provide the necessary assistance in
BUY PROPERTY IN AN ESTATE WHAT ARE SOME OF THE The MOI and rules are recorded documents DIRECTORS? that buyers should obtain and read before Rule creation and enforcement are areas of buying. These articles permit the HOA to make concern. Owners will need – and deserve – Finally,
rules and regulations governing the conduct adequate notice of any alleged rule violation, harmony can be sustained by encouraging
of the members and the use of the common including an opportunity to be heard, before open
property. The HOA should have copies of all any penalties are imposed. When owners fail between owners and the board.
its current documents available for review, to pay levies, the board often struggles to
GOVERNED BY AN HOA?
COMMON PROBLEMS FACED BY
interpreting and amending documents, levy
collection, internal dispute resolution and
other complex issues.
and
perhaps
communication
most
and
importantly,
cooperation
Pinnacle Point Estate — Clubhouse
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