Sunday, March 10, 2013

how to establish condo association? NEED DESPERatE HELP?

Question by aamer_84: how to establish condo association? NEED DESPERatE HELP?
i live in a building with 4 condos, I own one condo. There is no condo mgmt or association. How can we establish condo assoc/ or a hire a mgmt company to take care of bill disputes, cleaning etc..
We just split the bills as they are due but they pay me late and then we get late charges etc, can we hire a third party company to take care of all this and then the condo owners are liable to the 3rd party? NEED DESPERatE HELP
joseph thanks for your answer,
the thing is this is only a ONE 4 unit (condo) building, not like a big development etc etc so no like 3rd party intermediary which is making it a lot more complicated, No one wants to get together for meetings, let alone meet to establish a condo assoc.

Best answer:

Answer by Joseph K
Your situation is quite common among new small condo associations and I can appreciate the overwhelming feeling you are experiencing right now. Unfortunately, the questions you asked are just the tip of the iceberg, as there are many others that you probably are not even aware of. I would offer the following advice: first, your governing documents will define how your Association Board of Directors (BoD) is elected, normally at the first Annual meeting. That meeting, along with the Developer turnover of responsibility is typically the birth of your new association. This transfer includes the acceptance of governance, common property (including the maintenance repair responsibilities), and the financial responsibility for the association. Now, you work is just beginning.

You should recognize that an association’s BoD is not simply a group of neighbors getting together to make decisions about their condos in a social setting. Rather, it is a legal entity that is guided by the by-laws and other governing rules and regulations. Failure to meet any of these obligations has serious implications, as lawsuits are not uncommon in condo associations, particularly if poorly run or neglected.

While management companies can simplify things for a condo Board, they do not replace the condo Board. The Board still must meet to set priorities, review the budget, vote on major expenditures, evaluate the management company, and help address problems between neighbors. In addition, the Board will probably take the lead in selecting new paint colors for the common area, new plants for the garden, and other similar matters.

Generally, small associations (i.e. – less than 30-40) do not hire management companies and do it all themselves. There are not enough units to support the fees for a management company or to hire a separate site manager. In many cases, the association BoD will only hire a management company or qualified accountant to handle the billing of the monthly assessments and the payment of basic bills.

But, to self manage your “business” (and it is a business), you have to have the necessary time and skills within your BoD. An association is a legal entity and similar to other corporations — it is governed by a Board of Directors elected by the members and a set of rules called by-laws. Books and records of financial transactions must be kept, taxes paid, and certain services must be provided to members.

I strongly encourage you to visit the website www.condopresident.com under the Contents section to get a list of all the things that have to be considered in setting up your new association. Trust me when I tell you that you can spend an enormous amount of time (weeks and months), effort, and cost trying to figure this stuff out yourself, using a piecemeal approach. This simple to follow To-Do list provides a concise course of action to follow. It not only tells you what to do, but when do it.

Good Luck
JoeK

Additional – “I feel your pain” when you say that no one wants anything to do with the new association. This probably is the number one reason for considering the job, particularly with a small association. Most members have “day jobs”, other interests, family priorities, or feel that they lack the experience to properly perform the job. After all, isn’t one of the main attractions of belonging to a condo association that you don’t have to do work like cutting the lawn or fixing things up? But, when nobody is volunteering and everyone is saying “Not Me”, what do you do? The association has to be managed by a Board, as defined in the by-laws. Bills have to be paid. Services have to be provided. Who is supposed to do all of this? This is usually the situation the most prospective president candidates find themselves and it sounds like you are in that situation. Finally, even though you are 4 units in one building, the eventual Board members still have certain lbusiness and legal obligations to fulfill.

Know better? Leave your own answer in the comments!


how to establish condo association? NEED DESPERatE HELP?

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