“Help us to stay online by your kind donation.
Every penny will help.”
Bylaws of Condominium Association
1.01. Members. The members of the [name] Condominium
Association, a [state] not-for-profit corporation, are the Unit Owners
of the property known as [name] Condominium, located at [address]
(Property), and as defined in the Declaration of Condominium Ownership
for the Property. If a Unit Owner is a trust, the beneficiary shall be
the member, If the Unit Owner is a corporation or partnership, an
officer, partner, or employee of that owner may be the member.
1.02. Termination of Membership. A Unit Owner's membership
ends when the Owner is no longer a Unit Owner. On the sale or other
disposition of the unit, a Unit Owner's membership is automatically
transferred to the new owner of that unit.
1.03. Annual Meeting. The annual meeting of the Unit Owners
will be held on the [day, month] in each year, beginning with the year
[year], or at any other day or time fixed by the Board of Directors,
but not less than [number] days or more than [number] days after
[name] (Trustee), under Trust No. [number] dated [date], has sold
and delivered deeds for sufficient units, namely, units to which are
allocated at least ---------- percent (----------%) of the undivided
ownership of the common elements.
1.04. Special Meetings. Special meetings of the Unit Owners
may be called by the President or Board of Directors. A special meeting
must be called by the President if requested by not less than ----------
percent (----------%) of the Unit Owners entitled to vote at the
1.05. Notice of Meetings. Written notice, stating the place,
day, and hour of the meeting and, in the case of a special meeting, the
purpose for which the meeting is called, shall be delivered not less
than [number] nor more than [number] days before the date of the
meeting, either by hand or by mail, to each Unit Owner entitled to vote
at the meeting. If mailed, the notice shall be deemed to be delivered
when deposited in the U.S. mail, addressed with the address the Unit
Owner has given the Board for delivery of the notice or, if none has
been given, at the unit.
a. Number of Votes. The total number of votes of all Unit
Owners is [number]. This is divided among Unit Owners in accordance
with each owner's percentage of ownership of common elements.
b. Special Vote Requirement. If, at any time ----------
percent (----------%) of the Unit Owners own over ---------- percent
(----------%) of the undivided ownership of the common elements, then
any percentage approval of Unit Owners required in the [name] Act, or
the Declaration of Condominium Ownership, or these Bylaws is deemed to
require approval by the specified percentage of Unit Owners (rather than
the number of votes held by each).
c. Co-Owners and Trustees. If a unit is owned by more than
one person, the voting rights attached to that unit will not be divided.
A trustee may exercise all voting rights attached to units owned by the
d. Percentage Vote Requirement. The following matters
require approval of not less than ---------- percent (----------%) of
the votes of Unit Owners:
i. Purchases or sales on behalf of all. The
purchase or sale of land or units on behalf of
all Unit Owners.
ii. Sale or pledge of the property. The sale,
lease, mortgage, exchange, or other disposition
of all or substantially all of the Property or
assets of the Association.
1.07. Quorum. At any meeting of Unit Owners, a quorum
consists of ---------- percent (----------%) of the votes entitled to be
BOARD OF DIRECTORS
2.01. Number. The Board of Directors of the Association
(Board) consists of [number] members.
2.02. Election of Directors. Directors will be elected by the
Unit Owners at the regular annual meetings. Those who receive the
greatest number of votes of Unit Owners will be elected. However, the
Directors listed in the Articles of Incorporation of the Association
(initial Board) will be appointed by the beneficiary of the Trustee
2.03. Term of Office. Except for members of the Initial
Board, every Director is elected for a term of [number] years (and
until a successor is elected and qualified). Directors may succeed
themselves in office.
2.04. Term of Initial Board Members. Until the first regular
annual meeting of Unit Owners, [number] members of the Initial Board
will hold office; [number] other members will hold office until the
second regular annual meeting of Unit Owners, and the remaining
[number] members will hold office until the third regular annual
meeting of Unit Owners.
a. Unit Owners. Except for members of the Initial Board,
each Director must be a Unit Owner or the spouse of a Unit Owner. If a
trustee is a Unit Owner, the Beneficiary of the trust may be a Director.
If a partnership or corporation is a Unit Owner, a partner, officer, or
employee of that entity may be a Director.
b. Disqualification. If a Director, during his term, no
longer meets the qualification contained in Section 2.05(a), the
Director, at that point, ceases to be a Director, and the position is
2.06. Vacancies in Board.
a. Right to Fill. Any vacancy in the Board will be filled
by the Directors, except for a vacancy created by a member of the
Initial Board, which may be filled by the Beneficiary.
b. Term. A Director elected or appointed to fill a vacancy
will hold office for the unexpired term of the Director succeeded.
2.07. Removal of Directors. Any Director may be removed from
office for cause, by a vote of the Owners of ---------- percent
(----------%) of the individual ownership of the common elements.
2.08. Compensation. Directors will receive no compensation
for service as Directors, unless resolutions duly adopted by the Unit
Owners explicitly authorize compensation.
a. Regular Meetings. One regular meeting of the Board must
take place within [number] days after the regular annual meeting of
Unit Owners. Thereafter, [number] meetings will be held each year.
b. Special Meetings. Special meetings of the Board may be
called by the President or a majority of the Board. Written notice of
those meetings must be delivered to each Director, personally or by mail
or telegram, not less than [number] days before the meeting.
c. Waiver of Notice and Action Without Meeting. Any
Director may waive notice of a meeting, consent to a meeting without
notice, or consent to action without a meeting.
d. Notice Required to Unit Owners. Each Unit Owner must be
given notice, as provided in Section 1.05 delivered at least [number]
days prior to the meeting, of any Board meeting dealing with (i) any
increase in or establishment of an assessment or (ii) the adoption of a
proposed annual budget. All such meetings shall be open to all Unit
Owners. Any Unit Owner may waive notice of such meeting, in writing.
2.10. Quorum. A majority of Directors constitutes a quorum.
2.11. Powers and Duties. The Board has the following powers
a. Elect and Remove Officers. To elect and remove the
officers of the Association.
b. Adopt Rules and Regulations. To adopt rules and
regulations governing the administration, management, operation, and use
of the Property and the common elements (and to amend those rules and
regulations from time to time).
c. Committees of the Board. To appoint committees of the
Board and delegate to the committees the Board's authority to carry out
certain duties of the Board.
d. Administration. To administer the Association's affairs
and the Property, and to formulate policies for the administration,
management, and operation of the Property and the common elements.
e. Employ a Managing Agent. To employ an agent (Managing
Agent) to maintain, repair, replace, administer, and operate the
Property, or any part of it, for all Unit Owners, on terms and for
compensation and with authority as the Board may approve.
f. Employees. To provide for the hiring and removal of
employees and other personnel, including accountants and attorneys, and
engage or contract for their services.
g. Custodian's Apartment(s). To make arrangements and enter
agreements for custodian apartments, on terms as the Board may approve.
h. Maintenance of Common Elements. To provide for the
maintenance, repair, and replacement of the common elements, and approve
payment vouchers, or delegate approval to the officers or the Managing
Agent, and to make purchases for the maintenance, repair, replacement,
administration, management, and operation of the Property and the common
elements, and delegate those powers to the Managing Agent (and any
employees of the Managing Agent).
i. Establish Fiscal Year. To determine the fiscal year of
the Association, and to change that fiscal year from time to time as the
Board deems advisable.
j. Annual Budget and Assessments. To estimate the annual
budget, and assess and provide the manner of collecting from the Unit
Owners their respective shares of estimated expenses.
k. Comply With Resolutions of Unit Owners. Unless otherwise
provided in these Bylaws or in the Declaration, to comply with the
instructions of a majority of the Unit Owners (as that majority is
defined in the Declaration) expressed in a resolution duly adopted at
any annual or special meeting of the Unit Owners.
l. Purchase Unit at Foreclosure Sale. To bid for and
purchase, on behalf of the Association, any unit (or an interest in a
unit) at a sale pursuant to a foreclosure of the lien for common
expenses, or at any other private or public sale, upon the consent or
approval of Unit Owners owning not less than ---------- percent
(----------%) of the total ownership of the common elements, provided
that consent sets forth a maximum price that the Board or its duly
authorized agent may bid and pay for the unit.
m. Financing and Assessments for Unit Purchases by the
Association. To make mortgage arrangements and special assessments
proportionately among the respective Unit Owners, and other financing
arrangements (as the Board may deem desirable) in order to purchase or
lease a unit, or interest in a unit, on behalf of the Association
(provided, however, that no financing arrangement is secured by an
encumbrance on any interest in the property other than the unit, or
interest in it, to be purchased, and the percentage interest in the
common elements appurtenant to it).
n. Other Powers and Duties. To exercise all other powers
and duties of the board of managers referred to in the [name] Act of
[state], and all powers and duties of a board of managers or a board
of directors referred to in the Declaration or these Bylaws.
2.12. No Delegation Contrary to Law. Nothing in these Bylaws
will be deemed to grant the Board, officers of the Association, or the
Association any powers or duties that are delegated to the Unit Owners
3.01. Officers. At each annual meeting of the Board, the
Board will elect the following officers of the Association by a majority
vote of the Directors present at the meeting: a president, a secretary,
a treasurer, and such additional officers as the Board determines are
3.02. Powers and Responsibilities.
a. General. The respective officers have all of the general
powers and duties usually vested in such officers by the [state]
Not-for-Profit Corporation Act, including the following:
i. President. The President will act as chief
executive officer of the Association and will
preside over all meetings of the Board and of the
ii. Secretary. The Secretary will keep the
minutes of all meetings of the Board and of the
Unit Owners, and is designated as the officer to
mail and receive notices served by or on the
b. Qualifications. The President must be a Director. The
Secretary may be representative of the Managing Agent of the Property.
c. Treasurer. The Treasurer is responsible for the
financial records and books of account of the Association, including the
way in which they are kept and reported.
3.03. Term of Office. Every officer will hold office for
[number] years (and until a successor is elected and qualified).
Officers may succeed themselves in office.
3.04. Vacancies. Vacancies in any office will be filled by
the Board for the unexpired portion of the term of the officer being
3.05. Removal. Any officer may be removed for cause by the
vote of ---------- percent (----------%) of the Board.
3.06. Compensation. The officers will receive no compensation
for their services as officers, unless a duly adopted resolution of the
Unit Owners explicitly authorizes compensation.
ASSESSMENTS AND BENEFITS
4.01. Annual Budget. The Board will cause an estimated annual
budget to be prepared for each fiscal year and will adopt an estimated
annual budget. The budget will provide for a reserve for contingencies
and for replacements, in reasonable amounts as determined by the Board,
and shall take into account estimated common expenses, income and cash
requirements (including a working capital fund, salaries, payroll taxes,
legal and accounting fees, materials, parts, supplies, services,
maintenance, repairs, replacements, landscaping, insurance, fuel,
utilities, and all other common expenses), the surplus or deficit from
the preceding year, and the net income from the lease, operation, or use
of the common elements. The annual budget will indicate each Unit
Owner's common-expense assessment. The Initial Board will approve the
annual budget for the first fiscal year.
4.02. Notice to Unit Owners. The Board must give each Unit
Owner written notice of any meeting of the Board dealing with adoption
of the proposed annual budget or any establishment of or increase in
common-expense assessments, as well as copies of the proposed budget.
Notice must be delivered not less than [number] days and not
more than [number] days before the meeting.
Copies of the estimated annual budget adopted by the Board must be
given to each Unit Owner, not later than [number] days before the
first day of the fiscal year to which it relates.
a. Payment. Each Unit Owner must pay ---------- percent
(----------%) of his proportionate share of the common expenses, as
shown in the annual budget, each month. Payment must be made to the
Managing Agent or such other person as the Board may direct, on or
before the first day of the first month and each subsequent month of the
year covered by the annual budget. Such annual sum is sometimes
referred to in these Bylaws as the "assessment" or "assessments."
b. Share of Each Unit Owner. Each Unit Owner's assessment
must be a proportionate share in accordance with the Owner's respective
ownership interest in the common elements, as set forth in Exhibit B
[omitted] of the Declaration of Condominium Ownership.
c. Delays in Approving a Budget. If the Board does not
approve an estimated annual budget or fails to set new monthly
assessments for any fiscal year before the beginning of the fiscal year,
each Unit Owner is to continue to pay the last established monthly
d. Partial Year Assessment. If any fiscal year is less than
a full year, the assessment for each Unit Owner will be proportionate to
the period in question.
e. Occupancy for Part of a Year or Month. Beginning on the
date of occupancy, each Unit Owner must pay the monthly assessment for
the following month or fraction of a month. Each Unit Owner is
responsible for the unit's assessment for the remaining period in the
fiscal year from and after the occupancy of the unit.
f. Failure to Use. No Unit Owner is relieved on his
obligation to pay the assessment if the Owner does not use, or abandons,
the unit or the common elements or limited common elements.
4.04. Annual Statement. The Board will furnish to each Unit
Owner an annual statement no later than [number] days after the end of
each fiscal year. The statement will contain an itemized accounting of
the common expenses paid for the preceding year and a tabulation of all
sums collected, will state the net excess or deficit of income over
expenditures plus reserves, and will contain any other information as
the Board deems desirable.
4.05. Supplemental Budget.
a. Need for Supplemental Budget. It during any year it
appears to the Board that the monthly assessments, as provided for in
the annual budget, are not sufficient to cover common expenses for the
balance of the year, or if there is a nonrecurring common expense or a
common expense not set forth in the annual budget, then the Board will
prepare and approve a supplemental budget covering the estimated
deficiency and provide a copy to each Unit Owner.
b. Supplemental Assessments. A supplemental assessment of
the proportionate share of the supplemental budget will be established
for each Unit Owner. The following rules govern supplemental
i. Separate assessments. Any nonrecurring common
expense or limited common expense, any common
expense or limited common expense not set forth
in the budget as adopted, and any increase over
the amount adopted in the annual budget shall be
separately assessed against all Unit Owners.
ii. Vote required for adoption. Separate
assessment must be approved by the affirmative
vote of at least ---------- percent (----------%)
of the Unit Owners, voting at a special meeting
of Unit Owners duly called for the purpose of
approving the assessment, if it involves proposed
expenditures resulting in a total payment for a
unit equal to the greater of [number] times the
unit's most recent monthly common-expense
assessment or ---------- dollars ($----------).
4.06. Expenditures and Contracts. Except for expenditures and
contracts specifically authorized by the Declaration and these Bylaws,
the prior approval of ---------- percent (----------%) of the total
ownership of the common elements is required before the Board may (a)
enter into any contract for more than [number] years or (b) approve
any expenditure in excess of ---------- dollars ($----------), unless
required for emergency repair, protection, or operation of the common
elements or limited common elements.
4.07 Lien for Assessments.
a. Duty of Unit Owner. Every Unit Owner has the duty to pay
his proportionate share of the common expenses and limited common
expenses, as provided in the Declaration, and as assessed in accordance
with this Article IV.
b. Lien for Unpaid Assessments. If any Unit Owner fails or
refuses to pay any assessment when due, the amount of the assessment
plus interest at the rate of ---------- percent (----------%) per year
or any greater rate permitted under the laws of [state] become a lien
on the interest of the Unit Owner in the Property and is enforceable by
c. Subordinate Lien. The lien provided for in Section
4.07(b) is subordinate to the lien of any prior recorded mortgage held
by the existing mortgagee on the interest of the Unit Owner, or its
successor and assigns, except for assessments due and payable from and
after the date on which the mortgage owner or holder either takes
possession of the unit, accepts a conveyance of any interest in it
(other than as security), files suit to foreclose its mortgage, or
causes a receiver to be appointed. The provisions of this Section
4.07(c) may not be amended, changed, modified, or rescinded in any way
without the prior written consent of all mortgages of record.
d. Rights of the Board and Association.
i. Right to possession. If any Unit Owner fails
or refuses to pay the assessment when due, and
withholds possession of the unit after demand by
the Board or the Association in writing setting
forth the amount claimed, the Board or the
Association has the right to possession of the
ii. Foreclose lien. The Association or the Board,
or its agents, has the right to maintain a suit
to foreclose any liens for unpaid assessments,
and the costs of the suit and other fees and
expenses, together with legal interest and
reasonable attorney fees fixed by the court, will
be added to the amount due.
iii. All rights and remedies. The Board or the
Association has the authority to exercise and
enforce any and all rights and remedies as
provided for in the [name] Act, the
Declaration, or these Bylaws, or as are otherwise
available at law or in equity, for the collection
of all unpaid assessments.
4.08. Records. The Board will cause to be kept detailed and
accurate chronological records of the receipts and expenditures
affecting the common elements and limited common elements. Payment
vouchers may be approved in the manner established by the Board.
4.09. Statements of Accounts. On receipt of [number] days'
written notice to the Board or Association, and payment of a reasonable
fee, the Board will furnish to any Unit Owner a statement of the
account, with the amount of any unpaid assessment or charge due and
owing from the Owner.
4.10. Discharge of Lien on the Property. The Board may cause
the Association to discharge any mechanic's lien or other encumbrance
that, in the Board's opinion, may constitute a lien against the Property
or the common elements (rather than a lien against only a particular
unit). When less than all the Unit Owners are responsible for the
existence of a lien, the Unit Owners responsible shall be jointly and
severally liable for the amount necessary to discharge it, and for all
costs and expenses (including attorney fees) incurred by reason of the
4.11. Funds Held for Unit Owners. All funds collected by or
for the Board will be held and spent for the purposes provided in these
Bylaws. Except for special assessments not levied against all the Unit
Owners and for any adjustments that are needed to reflect delinquent or
prepaid assessments, all funds are held for the benefit and account of
all the Unit Owners in the percentages provided in these Bylaws.
USE AND OCCUPANCY RESTRICTIONS
5.01. Offensive Activities. No offensive, noxious, or
unlawful activities may be carried on in any unit or elsewhere on the
Property. Nothing may be done in any unit or elsewhere on the Property
that constitutes a nuisance or that, in the judgment of the Board,
causes unreasonable noise or disturbance to others.
5.02. Maintenance and Insurance Costs. Each Unit Owner shall
maintain the unit in good condition and in good order and repair, at the
Owner's own expense, and shall not do or allow anything to be done in
the unit that may increase the cost or cause the cancellation of
insurance on other units or on the common elements.
5.03. Exterior Decoration and Hanging of Articles.
a. Permission Required. No Unit Owner shall (i) hang
laundry or other articles outside the unit, or that may be visible from
the outside of the unit (other than curtains, drapes, or shades, subject
to the rules and regulations of the Board); (ii) paint or decorate the
outside of the unit; (iii) display or hang any sign outside the unit, or
that may be visible from the outside of the unit; or (iv) install any
canopy or awning, or outside antenna, or other equipment, fixtures, or
items of any kind, without the prior written permission of the Board or
the Managing Agent acting in accord with the Board's direction.
b. Permission Not Required. No Unit Owner is prohibited
from placing outdoor furniture and decorative foliage, of a customary
nature, on a patio that is a limited common element appurtenant to the
unit. An Owner of a commercial unit may display, hang, or use any sign
on the outer perimeter of the commercial unit, if the sign complies with
all applicable ordinances and is consistent with the character of the
5.04. Animals. No animals may be raised, bred, or kept in any
unit, except for dogs, household cats, and small birds that are
household pets of the Unit Owner. Such household pets (a) may not be
kept for any commercial purpose; (b) must be kept strictly in accordance
with the rules and regulations the Board may adopt from time to time;
and (c) must not, in the Board's judgment, constitute a nuisance to
5.05. Storage of Personal Property. No personal property
belonging to any Unit Owner may be stored or kept in the common areas,
except in the common storage area and in the storage locker specifically
designated for the respective Unit Owner.
5.06. Trash. Trash, garbage, and other waste must be kept
only in sanitary containers, and be disposed of in a clean and sanitary
manner in accordance with rules and regulations of the Board.
5.07. Heating and Plumbing System. No Unit Owner may connect
any machine, appliance, accessory, or equipment to the heating or
plumbing system, without the prior written consent of the Board or the
5.08. Electrical System. No Unit Owner shall overload the
electrical wiring in the building, or operate any machine, appliance,
accessory, or equipment in a manner that causes unreasonable disturbance
to others, in the judgment of the Board.
5.09. Use by Trustee. During the period of the sale of units,
the Trustee or Beneficiary, and its agents, employees, contractors, and
subcontractors are entitled to access to the building and Property
required for such sales. The agents and employees may use and show one
or more unsold or unoccupied units as a model unit and/or sales office,
and may maintain customary signs on the Property in connection with
sales of such units.
TRANSACTIONS WITH COMMON AND INTERESTED DIRECTORS
6.01. Validity of Contracts With Interested Directors. No
contract or other transaction between the Association and any Director,
or any corporation or entity in which any Director of this Association
is a director or is financially interested, is voidable because the
Director is present at a meeting of the Board or any committee of the
Board that authorizes or approves the contract or transaction, or the
Director's vote is counted in the authorization or approval, if either
of the following conditions are met:
a. The fact of the common directorship or financial
interest is disclosed or known to the Board or
committee and noted in the minutes, and the Board or
committee authorizes, approves, or ratifies the
contract or transaction in good faith by a vote
sufficient for the purpose without counting the vote
or votes of the interested Director or Directors; or
b. The contract or transaction is just and reasonable
as to the Association at the time it is authorized or
6.02. Quorum Requirements. Common or interested Directors, as
defined in Section 6.01, may be counted to establish a quorum at a Board
meeting, or meeting of a committee of the Board, that authorizes,
approves, or ratifies a contract or other transaction.
7.01. Acts Against Which Indemnified. The Association will
indemnify and hold harmless each of its Directors and officers, each
member of any committee appointed under these laws, the Board, the
Trustee, and the Beneficiary against all liabilities arising from (a)
their status as Directors, officers, committee or Board members,
Trustee, or Beneficiary or (b) all contracts made by and all other acts
of each person or entity. However, the Association will not indemnify
or hold harmless any person or entity if the contract or act in question
was made or done fraudulently, with criminal intent or gross negligence.
7.02. Liabilities, Costs, and Expenses Included. The
Association's obligation to indemnify and hold harmless, as provided in
Section 7.01, includes indemnification against judgments or settlements
paid, all attorney fees or other professional fees, and all other costs
and expenses reasonably incurred in connection with any claim, suit, or
7.03. Advance Payment. The Association may pay costs and
expenses incurred in connection with any claim, suit, or proceeding as
to which it may have an obligation to indemnify and hold a party
harmless, before the final disposition of such claim, suit, or
proceeding if (a) authorized by the Board in the particular case after
(b) receipt of an undertaking by the person or entity for whose behalf
the funds are to be paid to repay such funds unless it is finally
determined that the person or entity is entitled to be indemnified by
7.04. Funds Required. The Association and Board may raise, by
special assessment or otherwise, any funds required to discharge its
obligations under this Article. Each Unit Owner's liability either for
indemnification or under any contracts made or acts of the Directors,
officers, Board, committee members, Trustee, or Beneficiary is limited
to a percentage of the assessment equal to the percentage of ownership
of the common elements.
7.05. Other Rights. This Article VII is not exclusive of any
other rights to which the person or entity seeking indemnification may
7.06. Continuity of Right to Indemnification. The right to
indemnification provided in this Article VII continues after any person
or entity has ceased to be the Trustee, Beneficiary, Director, officer,
or committee member. Such right inures to the benefit of the heirs,
successors, executors, administrators, and assigns of any person or
8.01. Amendments. These Bylaws may be amended by action or
approval of ---------- percent (----------%) of the total ownership of
the common elements. Amendments are to be recorded in the office of the
Recorder of Deeds [county, state].
9.01. Contracts. Every agreement made by the Directors,
Board, officers, committee members, Trustee, Beneficiary, or Managing
Agent on behalf of the Unit Owners must provide that (a) the person or
entity is acting solely as agent for the Unit Owners and has no personal
liability (except as a Unit Owner) and (b) each Unit Owner's liability
is limited to a percentage of the total liability equal to his
percentage ownership interest in the common elements.
9.02. Definitions. The terms used in these Bylaws are to have
the same definition as contained in the Declaration of Condominium
Ownership, to the extent they are defined in the Declaration, recorded
in the office of the Recorder of Deeds [county, state].
9.03. Other Powers. In addition to and in furtherance of the
powers contained in these Bylaws, the Association has all other powers
permitted and/or granted to not-for-profit corporations under the
[state] Not-for-Profit Corporation Act.