Shared Flashcard Set

Details

Governance and Legal Issues
Laws
31
Real Estate & Planning
Professional
06/22/2011

Additional Real Estate & Planning Flashcards

 


 

Cards

Term

 

 

 

ByLaws

 

 

 

 

(2) 1

Definition

 

 

 

 

Formally adopte governing regulations for the adminstration adn mangement of a community assoication

Term

 

 

CC & R

Covenants Conditions

&

Restrictions

Definition

 

The govierning documents that dictate how the homeowners association operates and what rules the owners and their tenants and guests must obey.  These documents and rules are legally enforceable by the homeowners association, unless a specific provision conflicts with federal state or local laws

Term

 

 

 

Community Association

Definition

 

 

 

A group of owners who wish to provide a communal basis for preserving maintaining and enhancing their homes and property

Term

 

 

 

Codominium

Definition

 

 

 

A living unit fully owned by an individual with an undivided interest in the common elements of the community. The community association itself owns no real estate as an association

Term

 

 

 

Cooperative

Definition

 

 

 

 

Wherein an individual owns stock or membership in the cooperative, and holds a proprietary lease or occupance agreement for his or her living unit

Term

 

 

 

Declaration

Definition

 

 

Is used terchangeable with CC& R

Term

 

 

Governing documents

Definition

 

 

Which provide for the legal structure and operation of the community.

Term

 

 

Indemnification

Definition

 

 

 

To indemnify and hold harmless means to exempt an individual or entity from responsibility for claims made against the organization and to reimburse the individual or entity for damages or expenses incurred as a result of such claims

Term

 

 

 

Master Association

Definition

 

 

 

An organization of homeowners in a large condominium or planned unit development (PUD)which includes representatives from other, smaller homeowner organizations

Term

 

 

Mix use development

Definition

 

 

 

A development which is designed to mix two or more "uses" of land together ( i.e.) shopping center which offers office space for  dentist

Term

 

 

 

Planned Community

Definition

 

 

 

Most common type of community association, where an owner owns his or her lot and / or living unit and the community owns any common areas, such as tennis courts and roads for the use and benefit of the lot owners

Term

 

 

 

Proprietary Lease

Definition

 

 

A rental agreement between a cooperative housing corporation and a share holder allowing use of a certain unit in the premises

Term

 

 

Public Offering Statement

Definition

 

 

 

A desclosure statement prepared by a developer that contains all material facts about a property offered for sale and that must be provided to a prospective purchaser in accordance with applicable state or federal law.

Term

 

 

 

Rosolution

Definition

 

 

 

is a motion that follows a set format and is formally adopted by the nboard of directors

 

 

Term

 

 

 

Statute

Definition

 

 

 

A formal written enactment of a legislative authority that governs a county state city or county

Term

 

 

 

Umbrella Association

Definition

 

 

 

A cluster of community assocation types that can include aspects of homeowners associations condominiums and cooperatives

Term

 

 

 

Ad hoc committee

Definition

 

Used when an objective needs consideration and no standing committee within the organization can absorb that issue into its scope.  Usually these committees are used on a short term basis, such as temporary oversight of an issue or review of the standing rules of that community

 

Term

 

 

 

Board liaison system

Definition

 

 

Directors are assigned to certain committees to guide the committee on board policy and procedures and to report back to the board.

Directors serving as a liaison must distinguish their role from the role of the committee chairperson.

Term

 

 

 

Business Judgement Rule

Definition

 

 

If a board has exercised reasonable business judgement in making a decision, the court will generally not consider the board negligent in its fuducary duty, nor will the court substitute its judgement for that of the board. However, the board mujst demonstrate how it has taken care in reaching a decision.  It is up to the coourt to decide if the board has exercised reasonable business judgment

Term

 

 

Fiduciary duty

Definition

 

 

Requires directors to act in the best interests and for the benefit of the corporation thus the community as a whole.  This fiduciary duty has two components: one, the members are required to avoid conflicts of interest and acting out of self interest and two the members are also required to act as a reasonable people fin managing the association's affairs

Term

 

 

 

Management Ethics

Definition

 

 

The term Ethics refers to the specific choices to be made by an individual in his or her relationships with others.  Professional ethics are the rules or standards that govern the conduct of members of a profession.  The assumption is that the special expertise held by members of the profession holds them to a high standard of trust by others.

Term

 

 

 

Management Audit

Definition

 

Consists of a review of governing documents and existing policies and procedures, current condition of the property, owner/resident satisfaction, and fiscal operations.  This review can be done by the board and manager together, or third party management consultant can be hired.

Term

 

 

Management Plan

 

Definition

 

A statement of goals and objectives approved by the board it includes the yearly cycle of tasks that management should perform on the community association's behalf

Term

 

 

 

Standing committee

Definition

 

 

Continued existence and are not relate3d to the accomplishment of a specific once only task.  Budget and nomination committees are examples of standing committees.

Term

Key Terms

 

Rule Development and Enforcement

 

Alternative dispute resolution

Definition

 

 

Mediation, arbitration and other ways of resolving conflicts with the help of a specially trained neutral third party without the need for a formal trial or hearing.

Term

 

 

 

Appeal

Definition

 

 

A request for a review of a case by a higher authority

if permitted by the governing documents of statute.

Term

 

 

 

Default hearing

Definition

 

 

Hearing held when the alleged violator fails to appear

 

Term

 

 

 

Due Process Procedure

Definition

 

 

 

 

formal process designed to protect the rights of all parties involved

 

 

Term

 

 

 

Hearing Notice

Definition

 

 

 

This a written notice to an alleged violator that a hearing will be held to consider his or her alleged violation

Term

 

 

Hierarchy of authority

Definition
Rules and architectural guidelines may not contradict or be in conflict with the legal sources that take precedence over them.  although rules and architectural guidelines are lower in the hierarchy of autherity for community associations they may clarify and expand a community goverining documents, but may not conflict with the other govering documents
Term

 

 

Rule

Definition

 

 

 

A specific statement of required behavior whose violation carries a penaltyy (sometimes called sanction)

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