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The legal risks of outdated HOA documents

On Behalf of | Jul 15, 2024 | HOA Law |

Homeowners associations (HOAs) rely on their governing documents to guide their daily operations and ensure compliance with state laws. However, these documents can become outdated over time, leading to potential legal implications with far-reaching consequences.

HOA governing documents consist of several legal instruments, including:

  • Bylaws: These are the rules that govern the internal management of the HOA. They outline the structure of the board of directors, the duties of the officers, the voting rights of the members and the procedures for meetings and amendments.
  • Rules and regulations: These are specific guidelines that the board of directors of an HOA adopts to manage the actions of residents and the use of shared areas.
  • Declaration of covenants, conditions and restrictions (CC&Rs): This outlines the rights and duties of property owners and the association. This includes restrictions on the use of the property, such as architectural guidelines or pet restrictions.

Each of these documents serves a unique purpose in governing the HOA and the whole community.

Legal risks of outdated HOA governing documents

Outdated governing documents can lead to legal risks, such as:

  • Non-compliance with state laws: As Texas laws evolve, HOA’s governing documents may become inconsistent with current statutes. This can lead to disputes and potential legal action against the HOA.
  • Ambiguity and conflicting provisions: Over time, amendments to governing documents can create ambiguity or conflicting provisions. This can result in disagreements among HOA members and difficulties in enforcing rules.

When governing documents are outdated, the HOA may be vulnerable to legal challenges. Thus, it is crucial to keep these documents updated.

The solution: Review and update

To avoid legal complications, HOAs should regularly review and update their governing documents. This will ensure that they align with current Texas laws and minimize the risk of disputes. Clear and concise governing documents also help property owners understand their rights and obligations. This prevents misunderstandings and fosters a more harmonious community.

When updating bylaws, CC&Rs and other documents, it is important to consult with lawyers experienced in HOA to ensure compliance and avoid potential pitfalls. By keeping governing documents up-to-date, HOAs can protect themselves from legal risks and ensure smooth operations.