differentiate legally between hoa covenants and conditions

Thus, an HOA is governed by a Board of Directors (who are elected by the members) and a set of rules called Bylaws. Since an HOA is a legal organization established to manage a private, planned community, such as Wheatland Hills, like any such organization it must have a governing body with a set of rules to follow in governing and managing the HOA. For example, if a buyer plans to purchase and run a business in a home in a community with Covenants he or she must carefully consult the Covenants to determine the conditions, if any, under which this activity is allowed. Buyers are expected to be familiar with the Covenants and make their home purchase accordingly.

In fact, most real estate transactions done through a Realtor include providing the buyer with a copy of the Covenants. In summary, it is always a good idea to become acquainted with and follow the rules of the Covenants of one's community. If you don’t abide by the Covenants, the HOA may impose penalties for any violations. For example, the Covenants may require you to keep your garage door closed or prohibit certain types of landscaping. They govern what you can, cannot, or must do with respect to your building structures, your property, common areas, and so forth. Basically, the Covenants are the rules of your neighborhood. These must also be recorded with the proper governing body, which in our case is Gallatin County (in the Clerk and Recorder's office).Īs noted above, the Covenants are a legal document that lays out the guidelines for a planned community.

A Declaration of Covenants, Conditions, and Restrictions (CC&Rs), usually just shortened to 'Covenants'.

The HOA will have its own governing documents in addition to the Articles of Incorporation in the form of If you buy a home (such as a single-family home, condo, or townhome) in any planned, covenanted community, such as Wheatland Hills, you will most likely be required to be part of a homeowners’ association (HOA), just as you are in Wheatland Hills. A discussion of Articles of of Incorporation for nonprofit entities is found here. As such there is a legal document, called Articles of Incorporation, that provides the necessary legal description of the corporation for identification, taxation (yes, we pay an accountant to handle our income tax returns each year), and other purposes as prescribed by law. Homeowners' Associations and Articles of IncorporationĪ Homeowners' Association is a legal entity, typically set up as a nonprofit corporation. (If you are not familiar with, it is a respected website for researching legal issues, as well as finding resources for doing law on your own).

Terms are often paraphrased or copied from. We hear or read the terms Homeowners' Association or HOA, Articles of Incorporation, Covenants, and Bylaws, but it may not be clear to all what they precisely mean, or what the distinctions among them are. Homeowners' Associations, Articles, Covenants, and Bylaws

Differentiate legally between hoa covenants and conditions