Associations are corporations formed by a real estate developer for marketing, managing, and selling homes and lots in a residential subdivision. After reaching a certain threshold of sales, the developer relinquishes its control of the association to its members. Usually, the association is formed by filing certain documents in the public records of the state and county in which the association is situated. State oversight of homeowner associations is usually fairly minimal, but this trend is changing, and the government increasingly regulates associations.
Associations initially exist under a standard set of legal documents: the Declaration of Covenants, Conditions, and Restrictions (CC&Rs), Bylaws of the Board of Directors, Articles, and Rules and Regulations. These documents are usually recorded in the local county public records.
A Homeowner's Association (HOA) is a type of corporation that owns real property and enforces the rules for a geographic area.
The developer incorporates a homeowners association before the initial sale of homes, and the Covenants, Conditions, and Restrictions (CCRs) are created. These documents outline the purpose of the homeowners association, membership requirements, and what types of rules residents need to adhere to.
Legal action of the homeowners association may be enforced through the threat and levying of fines and private legal action under civil law.
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