Short sales can provide an association with a way to recover unpaid assessments without foreclosing on an assessment lien. In a short sale, a property is sold for a price that falls short of the total amount of debt secured by liens against the property. An association that demands payment of delinquent assessments in order to remove an assessment lien may be able to collect the amount owing as the lien may prevent a short sale from taking place.
Taxation
Associations may have tax issues that arise with respect to taxes claimed to be on common area owned by an association, personal property owned by an association, such as office furniture and equipment, and income taxes. In most cases, but not necessarily all, the common areas of most CIDs are exempt from being taxed separately to an association, because it is usually already being taxed as part of the taxes paid by the individual owners. See Revenue and Taxation Code sections 2188.3–2188.7.
Typeface
Civil Code Section 5320, which advises members of the availability of the complete pro forma budget if a summary budget is distributed, and Section 5300(b)(9), the insurance summary statement, require that an association print these disclosures in at least 10-point boldface type. The first page of certain recorded documents must include a statutory discrimination notice in at least 14-point boldface type.
Waiver
Is the voluntary relinquishment or surrender of some known right or privilege, either by an express statement, or by one’s actions or failure to take action. The elements of “voluntary” and “known” are key; one is presumed to know one’s rights and that those rights are voluntarily relinquished if not asserted in a timely manner. (E.g., In civil cases, certain arguments and objections must be raised immediately, or the Court will deemed those objections waived.) When the right to hold a person liable through a lawsuit are waived, the waiver may be called an exculpatory clause, liability waiver, legal release, or hold harmless clause.