What is a Condominium Association?
A condominium is generally defined as a type of joint ownership of real property in which center portions of the property are commonly owned (the common elements), and other portions are individually owned (the units). A condominium is created upon the recordation of a declaration, bylaws, and a condominium plat in the Local County or municipal land records.
What is a Homeowners Association (HOA)?
A Homeowners’ Association (HOA) is a legal entity created by a real estate developer for the purpose of developing, managing and selling a community of homes. It is given the authority to enforce the covenants, conditions & restrictions (CC&Rs) and to manage the common amenities of the development. It allows a developer to end their responsibility over the community, typically by transferring ownership of the association to the homeowners after selling. Generally as voluntary associations of homeowners gathered together to protect their property values and to improve the neighborhood, a large percentage of U.S neighborhoods where free standing homes exist have an HOA. Most homeowners’ associations are nonprofit organizations and are subject to state statutes that govern non-profit corporations and homeowners’ associations.
What is a Community Association?
A community association is a nongovernmental association of participating members of a community, such as a neighborhood, village, condominium, cooperative, or group of homeowners or property owners in a delineated geographic area. Participation may be voluntary, require a specific residency, or require participation in an intentional community. Community associations may serve as social clubs, community promotional groups, service organizations, or quasi-governmental groups.
What are the differences in a Condominium Association and Homeowners Association?
Condominium Association, an Individual owns his or her living unit and an undivided interest in the common elements of the community. Each owner owns a percentage of the common elements – which consist of everything except the living units; for example, a pool or lobby. The Community association itself owns no real estate as an association.
Homeowners Association, an Individual owns his or her Lot and living unit. The Association owns any common areas, such as pools and roads for the use and benefit of the lot owners.
What is the Board of Directors?
The Association is most often (not always) a corporation by law, and therefore a governing body is needed to oversee the business of the Corporation. The Board of Directors is the elected governing body of the Corporation or a non-incorporated association. These Directors oversee and create the rules and regulations for enforcement within the community, oversee that funds are being properly budgeted and have the duty to enhance, maintain, and protect the property values and interests of the Association. The Board of Directors usually organizes several committees to aid in the decision making. Examples would be Architectural and Election Committees.
What is a managing agent?
The managing agent is a company that is engaged by the Board of Directors to manage the affairs of the Association under the policies and instructions of the Board. Boothby Realty’s sole responsibility is serving the Association as the Managing Agent.
What is the managing agent’s authority?
The managing agent has no authority except as advised by the Board of Directors. The managing agent does not make decisions; it implements the decisions of the Board.
What does a management company do?
A management company is contracted by the Board of Directors or community to provide such services as: collection of assessments, supervision of subcontractors, obtaining estimates for subcontracted services, advisement on legal & property matters and providing financial statements/information and income and expense reports. Also, a management company is a general clearing house for problem resolution, communications with homeowners and the Board of Directors and to serve in an advisory capacity. The management company reports directly to the Board and/or a designated member of the Board.
Why is my Property Manager not always available when I call the management office?
Our Property Managers perform many tasks for your Association, as well as other Associations. There are times when the tasks require them to be away from the office. These duties may include property inspections, property errands, or meeting with vendors, Board Members or homeowners. There are also times when a Property Manager is in the office but is unavailable due to being on the phone conducting business with other homeowners, vendors and/or Board Members.
Boothby Realty, Inc. takes pride in having a well trained staff that may be able to assist you in the event that your Property Manager is unavailable. If you are able to leave your request or question with the administrative assistant for your Property Manager, they can often get back to you before a manager is available!
If your question is regarding your personal account; you should ask for our accounting department.
What are your Association’s responsibilities?
An Association is a non-profit corporation managed by a Board of Directors and elected by the owners or by a developer appointed Board. The Board is responsible for the management of the Association’s funds, the enforcement of covenant restrictions, maintenance of common areas and establishing and implementing rules for the Association.
Who is responsible for what in an association?
The Organizational hierarchy of an association:
- Board of Directors (BOD) will establish policies and procedures.
- Management Company executes the policies and procedures as established by the Board of Directors.
- Committees research and make recommendations to the Board of Directors who then makes the final decision, i.e. Newsletter Committee, Architectural Committee, Rules Committee and Grounds Committee.
- Sub-Contractors are professionals employed to perform services for the association. The Management Company oversees the sub-contractors.
What is a Proxy?
An individual appointed to act or vote on behalf of another person by representing them at a meeting of the Association. The title can also refer to the written piece of paper granting that power.
What is a Quorum?
A Quorum is the minimum number of owners required to hold an official meeting of the Association. The number of owners required can vary greatly according to the corresponding Association’s governing documents.
What is a Common Area?
Any area of improved real property intended for shared use by the members/owners of an Association.
Do I have to follow the rules of the association?
Yes. When you purchase a home in a covenant restricted community you are obligated to comply with the restrictions then in place or that are properly established.
Do you need to get permission to make Architectural changes to your home?
Yes. All exterior changes must go through the Architectural Committee for approval before any changes should be made. Otherwise, you will not be in compliance of the covenant standards in place.
Why do I have to pay Association fees?
A Community Association is a nongovernmental Association made-up of mandatory members that reside within the Community. These communities can consist of neighborhood homes such as condominiums, townhomes, cooperatives and single-family homes.
Depending on what Common Areas your Community has, they typically pay for common area landscape maintenance, repair and maintenance of pools, playgrounds and equipment, and they provide for improvements desired by the Association and for services to the owners. In townhome and condominium developments, they sometimes pay for water and sewer service, insurance on the building and trash collection. This is detailed in your Association’s annual budget.
To whom do I make my check payable?
Always make your check payable to your Association.
Where do I send payment by check?
If you have a coupon book, the payments should be mailed along with a coupon to the bank’s address shown on the coupon. Please note: The bank cannot accept payments without a coupon. If you do not have a coupon book, checks can be mailed to your association at 4 Office Park Circle, Suite 106, Birmingham, AL 35223.
How do I pay with credit card?
Credit card payments may be made online. Please note we cannot take credit cards payments over the phone.
How much will it cost to pay with a credit card?
There is a $2.95 flat fee + a percentage depending on what type of card you use.