Buyer Should Have Asked About Pet Policy

Question: Our condominium board of directors has banned pets even though the declaration of covenants, conditions and restrictions allows them. When I inquired, I was told that the declaration had been amended before I purchased my unit and only pets that were here before the amendment are allowed to remain.

I was given a copy of the amendment, recorded by the county recorder. Given that the original documents bear the official seal of the state of California, has the board followed the proper procedure?

Did this amendment require a two-thirds vote signed by the members?

Answer: The declaration may be amended according to the procedures stated in the governing documents of your association. After the amendment has been approved by the percentage of owners required by the governing documents, it must be recorded by the county. Only the articles of incorporation are filed with the secretary of state.

If the amendment procedure is followed properly and the voting is certified by an officer of the association, the county clerk would record it.

All owners must be informed and given an opportunity to vote on an amendment to the articles of incorporation, declaration or bylaws. After an amendment has been approved and recorded, the amendment should be distributed to all owners because it is a part of the governing documents. There should be no reason for an owner being unaware of an amendment.

If you are a new owner and you weren’t informed about the amendment or given a copy of it during the escrow process, you may have recourse against the previous owner or the escrow company.

Fire the Manager? Only If Nothing Else Works

Q: Our homeowners association is just going into its second year. We have been frustrated with our management company’s lack of follow-up. This company was initially hired by our developer, and the manager has given us excuses instead of providing leadership and guidance in dealing with the developer. Our new board will probably vote to change management companies next month.

What documents and records can we expect to have transferred to the new management company? Do the association’s records and files belong to the management company or to the association?

A: All of the association’s documents, records and files, including contracts, financial statements and correspondence files, belong to the association. Personnel records should be turned over to the association if there are employees who work directly for the association rather than for the management company.

The current management company may request that someone from the association board of directors be present for the transfer of records. Most management companies will have a release form that lists the documents and records that are being transferred. Reputable management companies will be very efficient and cooperative during the transition process.

Though you didn’t ask for my advice about changing management companies, I would suggest that you have a face-to-face meeting with the owner of the current management company to discuss your concerns.

During the development phase, the management company is often perceived as being on the side of the developer. However, the developer who serves on the initial board of directors and the manager must act in the best interests of the association, even if the management company is a division of the developer’s company.

Terminating the current management company should be your last resort. Transition to a new company is not always smooth, and there are bound to be some problems while the new company is becoming familiar with the association’s procedures, as well as its members, contractors and vendors.

If you do change management companies, an audit should be performed by an independent certified public accountant. Ask for the accountant’s advice regarding the management transition. I recommend closing any bank accounts that have the current management company’s personnel as signers, leaving just enough funds to cover any checks that haven’t cleared the bank.

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Jan Hickenbottom is a community association management consultant and a founding director of the California Assn. of Community Managers. She selects questions of general interest for the column and regrets that she cannot respond to all questions. Send questions to Condo Q&A;, Private Mailbox 263, 4790 Irvine Blvd., No. 105, Irvine, CA 92620-1998.