hoa legal responsibilities

Legal Responsibilities of Home Owner Associations

Typically the rules regarding when a first meeting should occur will depend on when the first sale of a unit in the community is completed. Usually, it is within a certain amount of time, such as 3 or 6 months after the first sale. Having a lawyer working with the HOA is the easiest way to ensure these deadlines are met, and all aspects comply with state laws. 


How The Voting of The HOA Board is Done

Another aspect of how an HOA is run and state law requirements is in the voting of HOA board members. Typically the state will have regulations on how ballots are written and submitted, and who will count the votes and announce them. 


The Liability of HOA Directors

One of the things that HOA board members and directors may not realize is their personal liability in taking on the role. It’s important that they perform their responsibilities in good faith and take into account the betterment of the community as a whole. 


Of course, it is good for the directors to listen and gain advice from other HOA officers, professionals in certain fields, and any HOA committees. 


However, failing to do this can result in personal financial liability. This is governed by state law and is only implemented to ensure honesty and integrity with the power that comes in being a director of an HOA. 


An HOA Boards Powers, Duties and Legal Responsibilities

An HOA is responsible for the management of the association and all aspects relating to staying in compliance with local and state regulations. Luckily, it can delegate some of these responsibilities to management companies and groups that focus on ensuring the seamless running of the association. 


Some of the legal responsibilities that an HOA is responsible for include: 

  • Enforcing the laws and any declarations of the HOA and ensuring the proper ownership and management of the community. 
  • Paying any taxes and fees that if ignored, could become a “lein” on the community. 
  • Finding and contracting for any insurance for the HOA and/or community.
  • Delegating powers of the board, members, and the HOA in regards to insurance. 
  • Preparing and handling financial statements, ensuring their accuracy and sending any of these reports to the proper individuals. 
  • Forming and implementing any rules and regulations on the proper procedures and running of the association. 
  • Handling any disciplinary measures against community members that are not staying compliant with rules and regulations that have been set forth and implemented. 


Above is a concise list of some of the most essential legal responsibilities that an HOA has. By having a management group like CSM oversee these operations can take the stress out of running an HOA. With our years of experience and knowledge of state rules and regulations can save hours and days of research for a new association being formed. 


HOA Management Companies Help With Legal Responsibilities

Give our office a call, and we can help get you and your HOA on the right track, staying in compliance with state laws, and giving your HOA the peace of mind that all aspects are being handled without needing to micromanage and add more duties to you and your HOA boards plate. 


Give us a call today at (865) 315-7505, or contact us online!