Article IV: The Right to Be Told of All Rules and Charges

Homeowners shall be told-before buying-of the association’s broad powers, and the association may not exercise any power not clearly disclosed to the homeowner if the power unreasonably interferes with homeownership.

Governing Documents:

Associations can only enforce the charges and rules against homeowners that are clearly stated in plain English in governing documents. All rules will be provided to homeowners upon their request and will have contact information for the ombudsperson, and the description of the ombudsperson’s role.

Disclosure to Buyers:

Before the offer to buy a home becomes binding the homeowner has a certain amount of time to provide the buyer with certain documents. The number of days will be varied depending on the current state laws. This document will have a statement of information that is prepared by the ombudsperson as well as the association’s governing documents and plans. There will be a statement that will have each existing assessment as well as any unpaid assessment that the selling owner has due. This document will also state the association’s current operating budget and financial statement. Finally, a statement of the number of lawsuits that have been filed in the past three years will be states as well as any unsatisfactory judgments and pending legal actions. A homeowner is requests this documentation is not liable for any false information in the certificate and the buyer is not liable for any past assessments of future assessment greater then stated in the certificates that hold the information. The association has 10 days to furnish this certificate upon request of the homeowner.

Limits on Default and Implied Powers:

Governing documents and any statue that governs homeowners shall be construed to favor homeowner’s free use of their home, and against anybody who seek to limit the homeowner’s rights. If there is no specific authorization in the declaration then the associations do not have power to adopt any rules that restricts the use of individually owned homes. Outside of what is provided by the statute or authorized declaration, the common interest community may not restrict the structures or landscaping on property that is privately owned. Finally, an association may borrow money subject to limits in the governing documents. But the association may not assign future revenues or create security interest without approval by a certain percentage of all the homeowners.

This rule was set up because all homeowner’s deserve to know the exact rules the association applies. It was found out that this was not the case and that is why this rule is stated. The clearer the disclosure the better it does to prevent arbitrary enforcement. Homeowners can face serious sanctions if they do not follow the rules. Handbooks stating all the relevant information can be provided to all homeowners so they understand the rules. Homeowners also find that implied power can be surprises because they did not clearly inform themselves of the rules. Instead of leaving this up to chance it was set up for all homeowner to be sufficiently informed of what they can expect and how it can be handled. If you are a homeowner then you now have no excuse to ignore the rules and charges in place.