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Once formed, the Association typically adopts a set of bylaws. Bylaws are important: They describe how the Association is run, set out voting rights and procedures, and contain rules for such things as how to call a meeting and how often meetings must be held.

The bylaws may also describe the Association’s rights and responsibilities. For example, the Association is typically responsible to enforce the rules and regulations and to collect assessments. The bylaws may also lay out procedures for creating the annual budget and determining assessment amounts.

Associations are generally run by a board of directors (a “Board”) made up of a certain number of members (owners) elected by the membership at large (all the owners) during periodic elections. The bylaws typically set forth the length of the terms for the Board members and the procedures for elections.

It is helpful for an owner or potential buyer to review the bylaws to understand how the Association functions and to be familiar with the powers of, and the restrictions on the Association. You may be surprised to find out, for example that the Association can hold closed meetings or remove a Board member without notifying the owners.

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