A Condominium is a type of property, usually attached, where owners own their unit and a portion of private land that sits on the facilities such as swimming pools, surrounding landscape and clubhouses. All Condo buildings have associations policies governing the condominium project, allocation of routine maintenance costs, and collect monthly, quarterly or annual association dues. The “assessments” that each owner pays goes to the payment for the construction, insurance and maintenance of the community. All condo owners are members of the Association.
Covenants, Conditions and Restrictions of the Condominium Association
Everyone who buys a Condominium will receive a set of Covenants,Conditions and Restrictions(CC &Rs). Before signing the contract, the selling agentmust disclose what the rules and regulations of the Association encompass. There may be restrictions on pets roaming free, parking for overnight guests, or types of landscaping owners can put on their patios or balconies just to mention a few.
Structure of the Association
All Condos have a Homeowners Association that enforces the CC & Rs. The Homeowners Association is a legal entity that has enforcement powers to collect fees, enforce rules and regulations, or put liens on homes or even initiate foreclosure should owners become delinquent in paying Association dues. Residents who want to make an exception to the CC & Rs have to ask permission. If they want to alter the appearance of the unit from street view.
The Board of Directors
The Condominium Association has a Board of Directors whose members are owners of units within the Community. In the case of a project under construction, the builder includes the majority of the Board until all units are sold. The unit owners elect the members of the Board at the Annual meeting, and Associations must have a President, Secretary and Treasurer under Articles of Incorporation.
Professional Property Management
Most Condo projects use external vendors (Property Management) to oversee the maintenance of landscaping services, pool suppliers, and construction in order to maintain the exteriors and roofs of the buildings. Many Condominium Associations choose to turn all the management of Association over to a property management company that chooses, monitors, and pays vendors to maintain the property. The management company reports directly to the Board of Directors and attends Board meetings as specified by the contractual agreement between the Property Management Company and the Condominium Association.
Reserve Funds
All community owners have to pay monthly or annual fees to cover the costs associated with maintaining the property. Associations also have accounts known as “reserves”. These funds are used in an emergency and for routine updating according to the Reserve Study. An Association can anticipate overhead cost, but have no control over emergency situations such as storm damage, legal action for damages, or accidents that may damage a unit and cost extra money to repair.
For more information on how Beacon Management Services can assist your Homeowners Association or Condominium Association in the Atlanta area, please call: (404) 907-2112 or email Lisa Simmons at lsimmons@beaconmanagementservices.com. Our complete list of services is available at: www.beaconmanagementservices.com.
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