How do I form an HOA

Started by DavidL12 • 2 replies • 1054 views

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DavidL12 (New Jersey)
Posts: 2

Posted:

I recently moved into a brand new condo building and there are 14 units. 13 units have been sold and I have brought up the subject of now starting an HOA. Are we basically starting a legal corporation ie; XYZ LLC... I would appreciate any help! And does how does it affect the builder who still owns the last and largest condo in the building?

JoeW1 (New York)
Posts: 728

Posted:

DavidL12 - Check with your builder, an association has probably been formed of which the builder makes up all members. Did you get any closing documents with bylaws? Who do you make your monthly maintenance payments to? Call them to see if there's a condo assoc. first.

DaneC (California)
Posts: 210

Posted:

You should review the bundle of paperwork that was given to you through various stages of your purchase process. As a condominium building, there are common elements, so you must have an Association to manage the building.
The CC&R's may give you some guidance, as well as the By-Laws. Perhaps the developer may have already formed the Corporation. You will also need to investigate the finances of your group, since the developer may have had to fund some of the monthly assessments for unsold units for a period of time.

Depending on your State statutes, you may have the option to either Incorporate, or be an Unincorporated Association. Most likely, you may be able to find information about Incorporation at the website of your Secretary of State. (Which State are you in?)

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