Blog

• 20.01
  2012

  Preparing for an annual meeting

  The importance of reading your Master Deed

  January 20, 2011

  Malissa White

  Property Manager

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  For most condominium associations, a new year usually means scheduling an annual meeting of unit owners. Annual meetings are great forums for owners to get together and discuss topics of interest with their Boards of Trustees, such as new operating budgets or planned maintenance. In gearing up for the annual meeting, it is important to touch up on ones knowledge of condominium documents.

  Community associations are governed by several documents: Master Deed, Bylaws/Declaration of Trust, and Rules and Regulations. Cooperatives, on the other hand, are governed by a Proprietary Lease and Articles of Incorporation. These documents establish the condominium association and its governance, and outline responsibilities and any restrictions on use. All owners should be given copies of all association documents upon sale, and these documents should also be available on the association website in PDF format for easy access.

  The Master Deed – also known as the Covenants, Conditions and Restrictions – is one of the most important documents in relation to your association. The Master Deed establishes the condominium name, binds all owners to the association, establishes the responsibilities of the association, and defines the rights of owners and their obligations. It also details major features of the condominium itself, such as total square footage, construction materials, and the limits or boundaries that divide each unit from the common elements, as well as what elements within the unit fall under common area. For example, if Unit X has a leak from a water pipe that services multiple units, referencing the Master Deed will clarify if the cost for repairs are the responsibility of the unit owner or considered a common area expense.

  Your association Master Deed can provide valuable information, which may be necessary to reference during an annual meeting. Given the current economic climate, owners are increasingly interested in FHA regulations and how these requirements affect the sale or refinance of their units. With the potential effect high rentals may have on an association’s FHA approval, it may be a point of interest to review any rental restrictions in advance of the meeting.  This information is typically covered under the “Restrictions on Use” section of your Master Deed.

  Not all Master Deeds are created the same, however. Oftentimes, Master Deeds are left intentionally vague in areas to allow the association to build rules specific to their needs. Any rule in direct contradiction of the Master Deed or any governing document, however, cannot be enforced.

  It is important to note that any alterations or changes made to the Master Deed must be approved by a majority of owners – unless otherwise stated in your Master Deed – and filed as an Amendment with your county’s Registry of Deeds. Seeking out an attorney prior to any additions or changes is a great way to ensure that changes are done in compliance with all local and state laws, and in accordance with the governing documents.

  For more information on your association’s Master Deed, or for questions in advance of your upcoming annual meeting, contact Mediate Management at (617) 316-3300.

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