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ChrisD9 (Illinois)
Posts: 3
Posted:
So Im curious as to any laws governing the distribution of HOA Rules & Regulations. We have occassional situations where for what ever reason a home owner has lost or never received a copy of the HOA's Rules and Regs. In an effort to foster a community atmosphere it was suggested we distribute them to the resident directly in these cases. However it was noted that this may not be legal or is not legal and that the attourney must be the one to distribute them to the home owner.

I have a hard time understanding this if this ineed is the case and would like to get some insight or clarification on the subject. I've looked through the Illinois Statues and haven't seen anything specifically but am relatively new to this and thought I'd pose the question here.

Thanks!

JeanneK3 (Maryland)
Posts: 562
Posted:
Chris:
Where did you get that idea? The rules and regs should be distributed by the board often, put on the community web site and reminders put in community newsletters.
Jeanne
CarolR11 (Colorado)
Posts: 2,563
Posted:
Welcome to HOATalk, Chris. Along with Jeanne, I can't possibly imagine why your Rules & Regs can't be distributed by anyone. Who in the world told you that?

I do believe that easy access to them cuts down on violations and also helps ward off confusion & uncertainty among residents.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
However it was noted that this may not be legal or is not legal and that the attourney must be the one to distribute them to the home owner.


LOL. Who told you that? Your lawyer? Scumbag.

I recommend giving all new owners in your condo/hoa/poa a copy of the CCR/Bylaws as soon as you see them. The cost of giving someone a copy of this paperwork will be much less than a legal fight with them later. You can do this via website, hand deliver, mail, whatever. If you want someone to follow rules, its in your best interest to give them a copy of the rules.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
CC&R's and Articles of Incorporation are PUBLIC documents. The CC&R's are on file at the local courthouse in the records department. The by-laws or "Regs" usually do not need to be filed but often are with the CC&R's. Those are "Internal" documents of the HOA. Along with Archectual Control Committee (ACC) if you have one. The Articles of Incorporation are STATE level filed and should be free to view online.

It is not viewed as the responsibility of the HOA, lawyer, Real Estate agent, mortgage company, or the seller to be responsible for giving the buyer the documents. However, a few states do make it so the seller has to provide them at closing. The court considers them PUBLIC documents and the responsibility of the buyer to be informed. A fact many people are unaware of until AFTER they buy into a HOA.

As far as financials or other HOA documents... Think of it this way. A POTENTIAL buyer is NOT a HOA member. They are just someone walking down the street who thinks a house is "pretty". They have no right to internal HOA documents as non members. Just like renters are not HOA members. It is a courtesy of the HOA if they do release this information to those buyers are truly interested. It's a fine line there and up to your HOA to define.

The cost of providing the documents and in what form is on the HOA. It must consider that providing a copy of the documents may cost upwards to $10 or more with supplies (stamps, envelops, copy paper etc..) That comes out of the HOA overall budget. It is then up to the HOA if they want to charge for copies or give them for free. Otherwise there are copies available at the courthouse.

Former HOA President
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Its board members with attitudes such as MelissaP1 that assume people can just figure out the rules is the reason why so many HOA's have issues. Just give people a copy of the rules when they move in for goodness sakes. Its really quite simple.
CarolR11 (Colorado)
Posts: 2,563
Posted:
I sooo agree with you Steve. Why not make it easy for new neighbors and help them become a part of the community?

How are new naive HOA buyers supposed to know about the names of the docs that they should have?? How do perspective buyers know that some are "public" and many are not? How should they know where to look for them?

(Unless they're in a state that requires the seller, to, often via the title or escrow co., give the buyer the docs prior to the close of escrow.)

Melissa keeps repeating her above over & over in numerous posts as if it's silly to be genuinely welcoming to new owners!
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I am stating the FACTS NOT my opinion. Honestly, I had no idea about the whole "HOA" documents situation when I bought my house. The information I post is what I found out. It is the SAME thing for many people who bought a house in a HOA who claim "ignorance" or "XXX responsibility". Is this system fair? Heck no. However, according to the LAW it is fair. By having the documents filed as PUBLIC there is no one to blame and less lawsuits.

Now as far as my HOA is concerned. I developed a brochure that was available at our entrance area. It did not have the documents, but stated the resources where to find them. It also had the general rules, pool hours, contact information of the HOA, and what you got for your $50 monthly dues. Just enough information to make a buyer informed but without having to hand out multiple copies of documents.

Former HOA President
SharonH9 (Virginia)
Posts: 216
Posted:
How are you supposed to "follow the rules" if you don't know what they are?
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Exactly Sharon... I didn't make up this system... I just live in it... This is what happens when people want to have more government in their HOA's... It's all free information... IF you know where to find it...

Former HOA President
SharonH9 (Virginia)
Posts: 216
Posted:
Quote:
Posted By MelissaP1 on 07/09/2013 5:02 PM
Exactly Sharon... I didn't make up this system... I just live in it... This is what happens when people want to have more government in their HOA's... It's all free information... IF you know where to find it...

I don't know what system you are talking about but in my HOA the only place to get the rules and regs is from the Board. They are not filed at the courthouse, we have no newsletter, no club house, no website, no place to post information. The members get to attend an annual meeting. You know what that means, once a year. That's it. I suspect there are other HOA's like mine. So where do I get the rules and regs? From a board member.

MelissaP1 (Alabama)
Posts: 13,836
Posted:
A HOA is a legal corporation. The paperwork and restrictions must be filed. CC&R's are attached to your DEED. Which means in order to enforce the rules, they have to be file with the county. In order to be a incorporated, the Articles of Incorporation have to be filed with the state. It is what makes it incorporated.

Just because you get your rules from the Board member does not mean those documents aren't on file. If they are not, then you may not be the HOA you all think you are. There are legalties involved and that does take official paperwork filed.

Former HOA President
SharonH9 (Virginia)
Posts: 216
Posted:
Quote:
Posted By MelissaP1 on 07/09/2013 5:50 PM
A HOA is a legal corporation. The paperwork and restrictions must be filed. CC&R's are attached to your DEED. Which means in order to enforce the rules, they have to be file with the county. In order to be a incorporated, the Articles of Incorporation have to be filed with the state. It is what makes it incorporated.

Just because you get your rules from the Board member does not mean those documents aren't on file. If they are not, then you may not be the HOA you all think you are. There are legalties involved and that does take official paperwork filed.

The CC&R's are filed at the courthouse. The Articles of Incorporation are filed with the Iowa Secretary of State. The bylaws and rules and regs remain with the board member who keeps all the HOA info. The CC&R's have expired but that has been discussed a number of times on this forum. Not getting into that again. Giving the rules and regs to people is the prudent thing to do as others have posted.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Look it seems like "common sense" to give out this information. I completely agree. However, looking at the legal standpoint it makes the most sense to make it the buyer's responsibility to be informed. It is the reason why it is this way. It is only those states where HOA members went to their legislatures to have the seller's responsible.

Look at it this way... The ONLY people who need to know the rules and live by them are the owners. You are NOT a member until you are an owner. The Realtor, bank, and closing attorney are NOT members. So why should they be responsible? The HOA and seller do have some kind of roles. However, the HOA only needs to give it's information to it's members. A buyer is NOT a member. A seller is an owner/member. It is just not always a requirement in each state for them to provide the information at sale.

So you can see this area kind of falls through the cracks. The court then considers the documents as PUBLIC and thus the potential buyer's responsibility to be informed if they are such. It helps lighten their case load of people suing others involved in the sales of houses.

Seriously, it is one of the hardest lessons learned when moving into a HOA. An area once you learn, you don't repeat it... Nor do you keep it a secret...

Former HOA President
FredS7 (Arizona)
Posts: 927
Posted:
> It is not viewed as the responsibility of the HOA, lawyer, Real Estate agent, mortgage company, or the seller to be responsible for giving the buyer the documents.

As has been noted before, this is highly state-dependent. In many cases there IS a legal obligation for either the seller or HOA to provide this information.

The ONLY reason I can think of to be careful when distributing documents is to make sure you distribute the current version, in cases where multiple versions exist.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
This issue has been debated before with answers ranging from it is a legal duty of the HOA to provide all information to let the buyer beware.

It is not the legal duty of the HOA to provide such (might vary in a few states). That said, any HOA that is not proactive in helping the buyer obtain a copy of the documents is setting themselves up for future potential aggravation and in some cases, unnecessary legal action.

The action could be as simple as informing them where the docs reside or an online copy. Maybe even a hard copy. Well worth the few bucks it would cost to produce.

Be smart, help, make nice, be open, etc. This will go a long way is establishing a positive relationship with new owners.

SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
The action could be as simple as informing them where the docs reside or an online copy. Maybe even a hard copy. Well worth the few bucks it would cost to produce.


It almost comical that people are arguing over getting a copy of the rules to a new owner. Even a simple one page of paper with a link. If you have a problem with this, you are not fit to be an officer or board member. Period.

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