Before any property in a planned development is sold, the developer forms a Homeowners’ Association (HOA) to run it. Each purchaser of property in the development automatically becomes a member of the Association.
The Association is typically created by filing Articles of Incorporation (“Articles”) for a nonprofit organization with the secretary of state where the development is located (although some states allow unincorporated associations).
The articles are usually brief and contain only the basic information about the Association, its name, location, and its purpose. There is ordinarily no need for a buyer or owner to review the Articles.