How do we get a copy of
our association indentures?
Sometimes you are provided
with a copy of the indentures by the title company when you purchase
your home. If not, you can usually ask your trustee for a
copy. You can also go to your county recorder of deeds and
request an official copy (there is usually a charge of $2.00 for the
first page and $1.00 for each additional page). Our office can
provide you with a copy for $15.00.
Is my association fee tax
deductible as a real estate tax? Unfortunately - No. Your association
fee is not considered a real estate tax and therefore is not
deductible as an itemized deduction. Consult with your tax
advisor is you have a business with an office in the home as it may
be partially deductible as a business expense.
Why do we have to pay
assessments to our association? When you purchase your home you also
purchase an ownership interest in all of the common areas owned by
the association (common ground, park areas, entrance monuments,
etc). As an owner, you have a legal responsibility to maintain
these areas. Your association collects assessments from all
owners to pay these costs.
Can my assessments be
increased without my vote? Most association indentures allow the
elected trustees to set the assessments at any amount that they deem
necessary to cover expenses. If you are concerned about this
issue our best advise is for you to attend your association meetings
to discuss the proposed budgets.
Is liability insurance
required for my association? Most indentures require the association
to carry insurance but even if your indentures do not, it would be
very unwise for you not to have liability insurance. If someone
was injured on association property and won a judgment against the
association, all of the homeowners may find that they are
What is D&O
insurance? Directors & Officers (D&O)
insurance is to protect the trustees of your association from
lawsuits. It does not protect them from illegal or fraudulent
acts but is designed to protect them for acts they perform in good
faith in their capacity as trustees. Many indentures do not
require this insurance but it may be difficult to find people who
want to act as trustees without it.