Condominium Association Rules & Regulations
- In addition to owning an individual unit, each owner owns a percentage of the common areas, such as hallways. The percentage of common area ownership cannot be sold separately. The owner of each unit has one vote at a meeting of the unit owners. As the condo association is a governing board, unit owners vote on any change to bylaws, special assessments, repairs or replacement.
- Each condo association has a set of rules and regulations. The attorney-prepared documents include the declaration of the condominium building, a description of the property or parcel on which it is situated and a description of the common elements. In addition, it defines common expenses, insurance parameters, duties and powers of the association board and unit owners rules.
- The bylaws of an association are the rules that each owner must adhere to. Since there are multiple owners, the bylaws serve to keep the property safe and a continuity within the building itself. The bylaws regulate voting rights, association meetings, assessment allocation, use of property and common elements, stipulations on selling and renting and parameters for construction. As each unit is a reflection on the entire property, bylaws may also have regulations on cleaning, if a service is not retained for it. Other items often regulated in bylaws are window treatments, noise regulation, pets and parking.
- Assessments are the monthly fees associated with condominium ownership. Generally the assessments will include exterior maintenance, snow removal, cleaning and maintenance of common areas and water. About a third of the annual dues should be in a savings account for emergencies. Depending on the condition and age of the building, the condo association may impose a special assessment that will be earmarked for a specific repair, such as tuck pointing or roofing. Your association should have a collection policy that outlines what steps will be taken in the event of nonpayment of dues. The healthier the association, the better the building will function and the easier for mortgage institutions to approve the building for new buyers.
- Condominiums should also have an annual budget and a reserve study. While the budget will outline the upcoming year funds allocation, the 30-year reserve study is a maintenance and funding plan for large items, such as roofs, sidewalks and streets. The study will determine the age and life expectancy, and a cost for replacement. The reserve study will also include a time line for repair or replacement and a plan for having enough money available to pay for it.
