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Association Checklist |
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Attorney at Law - Lawyer |
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Dublin, Ohio |
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At least
annually, an Association may want to conduct a legal audit
of the affairs of the Condominium or Homeowners Association
to assist in a determination of whether the Association is
being properly managed.
The following
checklist is suggested as a starting point, but each
Association, after consultation with legal counsel and other
advisers, may wish to make revisions so the checklist is
tailored to the needs of the particular Condominium or
Homeowners Association. |
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1. |
Legal
Responsibilities of Board Members. Are the officers and
directors familiar with their legal obligations as officers and
board members under Ohio law, under the terms
of the condominium declaration or the subdivision
restrictions, and under the terms of the corporate articles and bylaws? |
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2. |
Changes in
the Law. In the past year, have there been any changes in
the laws that affect the Association or the legal obligations of the
officers, directors, or members? |
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| 3. |
Lawyer Review. When was
the last time a lawyer conducted a legal review for the
Association? If the Association is relying upon a
non-lawyer, whether a volunteer or a manager, for legal
advice or legal services such as the preparation of legal
documents, consider whether that reliance falls short of the legal
obligation to make decisions with the care that an
ordinarily prudent person would use. |
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4. |
Status of Corporation. If the
Association is incorporated:
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a. |
Have all required filings been made and is
the corporation in good standing?
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b. |
When is the next filing required? |
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c. |
Who is the statutory agent? |
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d. |
Is the filed address of the statutory agent
the same as the agent’s current address?
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e. |
Is the person named as statutory agent still
the proper choice? |
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5. |
Legal Documents.
Does the board have a complete set of its governing documents?
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a. |
Articles of Incorporation and all amendments
and statutory agent documents. |
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b. |
Bylaws (formerly referred to as Code of
Regulations). |
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c. |
Condominium Declaration and all amendments
or Subdivision Restrictions and all amendments. |
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d. |
Drawings and plats.
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e. |
Easements and other exceptions to title. |
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f. |
Contracts, such as for management, common
area maintenance, etc. |
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g. |
Are you sure the documents you have are
copies of the official documents? |
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| 6. |
Format of Documents. In
what format are the documents? Should the documents be
converted to digital format for more convenient storage and
distribution? |
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| 7. |
Meetings - Compliance with
Requirements. Are Association and directors meetings
being properly conducted? What are the requirements for the
Association’s annual meeting? What are the requirements for
voting? When are the next meetings required to be held?
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| 8. |
Taxes. What are the
Association’s obligations regarding tax filings and when are
the next filings due? |
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| 9. |
Summary of Important Information.
Do you have a convenient list summarizing important
information? |
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a. |
The list of members and
the list of units or lots, and, for condominiums, the list
of percentage interests. |
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b. |
The corporation’s charter
number. |
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c. |
The date the next
corporate filing is due. |
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d. |
The name and address of
the statutory agent. |
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e. |
The corporation’s taxpayer
identification number (Employer Identification Number). |
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f. |
The tax forms the
Association must file and the due dates for the filings. |
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g. |
Recording information (for
example, the book and page number) for the Condominium
Documents, such as the Declaration and all amendments, and
the Drawings and all amendments, or, for homeowners
associations, the Subdivision Restrictions and all
amendments. |
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10. |
Financial Obligations.
Has the Association met its financial planning obligations,
such as adopting budgets and establishing reserves?
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11. |
Accountant - Audits.
Does the Association employ an accountant and does the
accountant conduct audits? |
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12. |
Financial Safeguards.
Has the Association implemented reasonable safeguards to
protect its cash and investments? For example, consider:
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Two signers required for
checks. |
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b. |
Bank statements being
mailed to someone other than the treasurer or being reviewed
monthly by a person other than the treasurer. |
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c. |
Are the people handling
the funds properly bonded, when is the next premium due to
keep the bond in force, and is someone other than the person
bonded checking to make sure the premiums are paid in order to keep
the bond in force? |
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13. |
Property Valuations.
Does the Association monitor the real property tax
valuations and determine whether the valuations should be
contested? When is the deadline for contesting valuations?
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14. |
Collection of Delinquent
Assessments. Does the Association have a policy
for the collection of delinquent assessments? |
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15. |
Rules. Does the
Association have duly adopted rules and a policy for
enforcing the rules? |
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16. |
Maintenance Obligations.
Has the Association met its maintenance obligations? |
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17. |
Insurance Obligations.
Has the Association met its obligation to obtain insurance
and when was the last review conducted of the Association’s
insurance obligations, the policies obtained, and the
financial strength and reputation of the insurance companies?
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18. |
Professional Assistance.
Are the needs of the Association being met by the volunteer
board and members, or is there a need to employ
professionals? |
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19. |
Professional Assistance by
Professionals. If someone is utilized or employed
to perform services for the Association, are their services
properly limited to the services they are qualified to
perform? For example, is the Association relying upon a
non-accountant for accounting advice and services? Is the
Association relying upon a non-lawyer, whether a volunteer
or a manager, for legal advice or legal services such as the
preparation of legal documents? Is the Association relying
upon a non-engineer for engineering advice and services? |
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20. |
Revisions to the Checklist.
Should revisions be made to the checklist to add additional
items, to modify items, or to delete items? |
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21. |
Assign Responsibility.
If any item on the checklist needs follow up, who is
responsible for making sure the matter is pursued to a
satisfactory resolution? |
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