A term of no fixed meaning generally construed in associations to refer to compliance with governing documents. Thus an owner who is in default on payment of assessments, or in violation of the governing documents, may be said to be “not in good standing.” However, because the term is not defined by statute, a clear definition within the governing documents is advisable. A finding that an owner is “not in good standing” may require prior notice and a hearing.
Incorporation
The act of creating a corporation, by the filing of articles of incorporation with the California Secretary of State.
Lawsuits
An action or a suit brought before a court, as to recover damages, enforce a right or redress a grievance.
Meetings, Member
Member meetings include annual (e.g., election of directors) or special meetings (e.g., recall). An association’s bylaws generally state the time, location, frequency and quorum requirement for member meetings. Corporations Code section 7511(a) requires between 10 and 90 days’ notice of a member meeting, but Civil Code section 5115 changes this to at least 30 days’ notice for the ballot period. At member meetings, the members (not the board) vote on the items of business.
Notice of Default
An association seeking to foreclose on an assessment lien must serve a Notice of Default on the person named in the association’s records as the owner of the property against which the assessment lien was recorded. The Notice of Default must be served in the same manner as a summons, which generally includes personal service, substituted service, service by acknowledgment and receipt, and service by publication in a newspaper.
Perpetuities, Rule Against
An archaic rule of law which required contingent interests in land to become vested within 21 years of lives in being at the time of creation of the interest. Today, the vestiges of the Rule are sometimes found in older sets of CC&Rs which provide that the CC&Rs will expire upon the happening of some future event, typically, the death of some personage.
Rats
Rodent infestation is a serious problem that must be dealt with quickly and decisively. Unlike wood destroying pests such as termites, the Civil Code does not assign responsibility for rodent extermination to any specific party. Check your governing documents to see who bears rodent extermination responsibility.
Safety
An association has a duty akin to that of a landlord to take reasonable precautions to protect residents from crime in the common areas, especially if there have been prior instances of crime in the common area. An association also has a duty to maintain in a safe condition the common area and any other components for which it is responsible. Failure to satisfy either of these duties may result in liability for the association.
Signs
The display of noncommercial signs, posters and flags is subject to reasonable rules and regulations established by the board of directors. Boards may not prohibit noncommercial signs and posters that are less than 9 square feet in size. Keep in mind that the first amendment protects free speech and courts are traditionally protective of individuals’ rights to express themselves. See Flags for a discussion of the U.S. Flag.
Telephone Wiring
Internal and external telephone wiring located outside the boundaries of a separate interest, but which only serves a single separate interest, is exclusive use area, regardless of what the governing documents say. (Civ. Code §4145(c)) Owners have a reasonable right of access over common area to maintain this internal and external telephone wiring, after obtaining the consent of the association. (Civ. Code §4790)