Creating your own business is tricky, especially if you have no idea how to get started. However, it gets even trickier as you go along this path.
With legal issues here and there, it’s no surprise that many entrepreneurs get intimidated and give up. Worse, they fall into all sorts of trouble involving the law.
A simple business is tricky enough. Imagine how difficult it is to develop a condominium association. Developers need to form a Condominium or Homeowners’ Association to govern the process of condominium development before any property is purchased.
What Developers Need To Know
The Articles of Condominium, also known as the Governing Documents, is there to protect the developer’s, and all future owners’ interests.
You’ll benefit a great deal from the Articles of Condominium—but you still have to take some time to understand it first. If you haven’t read much about real estate law, then you may have a bit of work ahead of you.
However, we’re here to help. Gudeman and Associates Attorneys can provide the assistance you need when it comes to creating and filing useful Articles, Bylaws, CC&Rs, and Rules & Regulations.
We will help give confidence to you, the stakeholders, the lenders, the investors, and all forthcoming purchasers. Today we’re going to talk about one of these critical concepts: the bylaws of the association. What is it? Why do you need it?
Let’s get started.
Bylaws of the Association: What is it?
The Governing Documents help define your corporation and the condominium you are developing, for example. If the Articles of Incorporation are there to provide necessary information such as the company name, the location, and its purpose, then the bylaws go a little bit deeper than that.
The Articles of Incorporation, once filed, creates the Association, which automatically includes the developers and future purchasers. The bylaws will dictate a set of rules that will describe how the Association is governed.
For example, it establishes voting rights and procedures such as how to call a meeting and how often these meetings should be held.
The bylaws will describe the Association’s rights and responsibilities. It will help clarify the Association’s role in terms of enforcing the rules and regulations. The bylaws may even establish the procedures for creating the annual budget, as well as determining assessment amounts.
While Associations are generally run by a board of directors, the board of directors follows the bylaws.
Developers must craft these bylaws in a way that suits their goals and the purpose of the Association. A well-crafted one can be made with the help of attorneys.
The Bylaws of Association works in conjunction with the other components of the Articles of Condominium. Together, these governing documents help define the Association: its functions and limitations.
Incorporation has many benefits, often reducing the risks that other business usually face. It limits your liability, it enhances your business’s credibility, and it even gives you a few tax benefits.
If you want to develop a condominium, it is also an essential step. Work with Gudeman today, and we will provide the legal aid you need to help start your business empire with proper condominium law expertise.
Gudeman & Associates, P.C.
1026 West Eleven Mile Road Royal Oak, MI 48067-5403
(248) 546-2800
https://www.gudemanlaw.com
