Governing Document Amendment and Restatement

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Do your governing documents (CC&Rs/Master Deed, Bylaws, Articles of Incorporation) need an update? We can help! Our firm has extensive experience in amending governing documents, both amendments of individual provisions of your current documents, or complete restatements of your Association’s governing documents to give you all new, updated documents. 

Many Associations have old, dated governing documents that have not been amended or updated in many years, even decades. The problem with older governing documents is that they often have provisions and language that are vague and ambiguous, which can create confusion among owners and the Board as to the rights and obligations of members and the Association. This can and does inevitably lead to disputes and potential liability for the Association. These legal costs to the Association (which are paid through owners’ assessments) can add up overtime and be a significant cost burden to the Association. 

Older governing documents also have issues in terms of compliance with current law and standards. While your Association’s governing documents may have been in compliance with the laws in place at the time they were prepared, laws can and do change. If your governing documents are not updated to comply with current law, the Association could very well be taking actions and operating in ways that are in violation of the law, even though the Board is following what is written in the governing documents. The standards for what are common and good practices in HOA and Condominium developments have also changed a great deal in the past number of years, as common interest developments become more and more prevalent throughout the country and various legal and administrative issues have arisen and been addressed. This means that, in addition to potential issues with legal compliance, your documents may not address various issues and include protections and standards for the Association to protect the Association, the Board, and individual owners (such as, for example, detailed provisions on insurance requirements, policies, and coverage limits; clear language on maintenance and repair responsibilities; assessments and reserves to fund the Association and ensure fiscal well-being; and clear language on corporate governance, meetings, records, and the like).

Having significant and numerous disparities among your Association’s governing documents and the law may result in confusion and disagreement among the Association’s members and the Board, with respect to the applicability and legality of the various provisions of your CC&Rs/Master Deed, Bylaws, and Articles of Incorporation. Further, having governing documents that are ambiguous or unclear, or that lack modern guidance and protections, puts the Association in a position where the Board and owners do not know or fully understand their rights and obligations, and where expensive legal counsel is needed either to constantly advise the Board or to try to fix long-running problems that were not identified and have snowballed into expensive disputes.

Updating your Association’s governing documents, either through amendments or through the preparation and adoption of new, fully updated governing documents will help ensure that your Association’s documents are fully compliant with current law and current industry standards, and will help protect your Association and its owners (and their investments in their homes) for years to come.

If you are interested in more information and/or an estimate for our governing document amendment and restatement services, or any of our legal services, please reach out to us using the form below or email us at Info@CarolinasFirm.com.