Answers to Frequently Asked Questions

These are the answers to some of the most frequently asked questions we receive. Please glance through them - it may save you time in getting answers to your question.

1. Who do we call if there is an emergency?

2. Why do I have to pay Association Fees?

3. How do I pay the Association Fees?

4. To whom do I make my check payable?

5. What does the Association do?

6. What is a "managing agent"?

7. What is the managing agent's authority?

8. What are the Governing Documents?

9. Where can I get a copy of the Governing Documents?

10. What is a deed restriction?

11. Why do I need to comply with the deed restrictions?

12. Why do I have to get the Association's permission for home improvement?

13. What is the "common area"?

14. What is a resale certificate?

15. What does the Association's insurance cover?

16. What is the insurance deductible?

17. Who is the Insured?

18. Are there any pet restrictions?

19. What is a "Master Association"?

I have another question...

MMI offers 24-hour emergency service to all their clients - both for association related emergencies as well as issues that may come up in your home that may not be covered by your association. We are only a phone call away. After hours (or any time a live person cannot get to the phone,) messages left in mailbox 31 result in emergency pager activation, so please leave your emergency message there and someone will return your call within minutes.

All owners are required to pay Association Fees by the governing documents of their Association. The fees may be due annually, quarterly or monthly. They fund the operation and maintenance of the common property and are used to provide services for the benefit of all owners. A portion of the fees is designated for the future replacement of aging property components. If it makes you feel better, your community association delivers many of the services typically provided by local government. Theoretically, your fees help keep taxes down, so the entire cost would not be saved if the Association did not exist.

Owners may elect to pay their Association Fees via check, credit card, or have the amount withdrawn from their bank account. Checks must be accompanied by the "assessment coupon" and should be mailed directly to the bank shown on the coupon. (The bank cannot accept payments without the coupons.) Owners may also apply to have their payments withdrawn automatically from their bank accounts. This eliminates the inconvenience of checks, coupons or timeliness of payment. Payment Options

Your check should be made payable to your Association (e.g.; "Happy Homeowners Association" or "Cozy Condominium Association")

The Association is a not-for-profit corporation managed by a Board of Directors elected by the owners. The Board is responsible for the management of the Association's funds, the enforcement of Covenants and Restrictions, Rules & Regulations and the maintenance of common area property.

The managing agent is a company that is engaged by the Board of Directors. The managing agent attends to the day-to-day operation of the Association and implements the policies and decisions as determined by the Board of Directors. The Board is allowed to delegate tasks, but not responsibility, to the managing agent.

The managing agent has no authority except as conferred by the Board of Directors. The managing agent does not make decisions; it implements the decisions of the Board.

The "Governing Documents" for your association are the Articles of Incorporation, Bylaws, Declaration of Covenants, Conditions and Restrictions (or Declaration of Condominium) plus any Rules and Regulations, Resolutions or guidelines that have been established by your association. The laws of the State, County or Municipality will supersede the community's documents in the event of a conflict.

You received a copy at, or prior to, closing on your home. If you need another set, it is available through your association and/or its managing agent. Your Governing Documents are recorded instruments so they are also available through the County in which your Association is located. A copy may be available for download on the community's website.

It is part of the Declaration of Covenants, Conditions and Restrictions (or Declaration of Condominium) that you agreed to when you bought your home. Through this document, you agreed to certain standards of maintenance, upkeep and behavior in order to make the community as attractive as possible for yourself and your neighbors, and to maintain or enhance your property values. These were conditions under which you purchased and you agreed by consummating the purchase. Under the law, if you did not receive a copy, you had the right not to purchase. But, by closing, you waived your right to receive a copy from the seller.

When you purchase a home in a deed restricted community you automatically agree to comply with the restrictions then in place or that are properly established. This ensures that the integrity of the community is maintained. These restrictions are for your protection and for the protection of your neighbors. Failure to comply brings a responsibility to the Board of Directors to bring about any action legally necessary to force compliance.

This better ensures that your intended improvement meets your community's standards as set forth in the Governing Documents and avoids the problems that arise from the construction of improvements and the use of colors or styles that conflict with others in your neighborhood. The Board of Directors has the power and the responsibility to force you to undo any improvement you make that do not comply with the Governing Documents, so the application process is your protection against future action against you.

It is the land for the use and enjoyment of the members of the Association. This includes facilities like pools and playgrounds in single family communities and hallways, exercise facilities and building structures in condominium communities. Common areas are owned by all in an undivided interest. For this reason, maintenance responsibility fall proportionately on all owners who have that undivided interest in common areas. This sometimes is most painful in a condominium disaster wherein one building is damaged, but owners of all the other buildings feel the financial burden... the building that burned was your building, too.

The resale certificate contains two parts. The first relates to the individual unit and notifies the buyer whether the seller of the property has (or has not) paid all assessments that are due and whether there are any violations affecting the real property being sold. It is also a disclosure by the Association of the amount of the assessment and whether the Association may foreclose to collect the assessment. The second part relates to the condominium or home owners association. This part contains copies of the Governing Documents, rules & regulations, evidence of insurance and current financial statements. Resale Certificates must be prepared by management. Buyers have a legal right to receive a resale certificate prior to settlement, at the expense of the seller, and have the right to withdraw from the contract, even at the settlement table, without penalty or loss of deposit, until they have been provided with the certificate and time to review the content. The seller providing a set of Governing Documents does not meet the requirement.

The Association's master insurance policy includes property and casualty policies for all common area property and equipment. (In condominium associations this includes the entire structure of the building.) It also includes Liability and Directors & Officers policies that cover Directors, Committee Members and volunteers working on behalf of the Association. The master policy does not cover personal property (contents), improvements made by the owner (betterments and improvements) or relocation expense during reconstruction following an insurable event. In a condominium, owners can obtain condominium unit owners insurance (type of policy: HO6) to cover contents, betterments & improvements and relocation expenses.

In a home owners association, generally the master policy covers only common area liability and common structures such as the pool house or club house. A standard home owner insurance policy (type: HO3) is advisable and, when a lender is involved, mandated.

In either case, your governing documents will explain exactly what elements are covered by the master policy and which are not. Sometimes the language is confusing, so always take a copy of the documents to your insurance agent and ask that he/she review them to ensure proper coverage is provided.

An insurance deductible is the portion of a loss not covered by the insurance policy. It is the small loss or first portion of the loss that the insured must pay. Depending upon the nature of the loss, the unit owner may be liable for payment of the deductible. Owner negligence is an example. If an owner allows the bathtub to run-over, the owner may be have to pay the deductible. The Association's insurance policy may have a $1,000, $5,000 deductible or higher deductible. The Association generally pays the deductible unless the damage is caused by an owner or only affects an Owner's unit. In Maryland, the portion of the deductible that may be charged to the unit owner is limited to $1,000. If the Association has a higher deductible than $1,000, it is considered to be self-insured for the excess. The Association saves money on its insurance premiums by having the higher deductible, but assumes responsibility for payment of claims over $1,000 and up to the amount of the deductible.

The Association and each unit owner are insured by the Master Policy. Even if the unit owner caused the claim, the Master Policy cannot subrogate against the owner (cannot come back to the owner to recover the cost of the claim.) This is much like an auto policy where you know you caused the accident, but you still expect your insurance company to pay. The Master Policy covers everyone for the covered or insured losses.

Most condominium associations and many single family associations have pet restrictions. Because they can vary widely by community, please review the governing documents for the restrictions pertaining to your particular community. In addition to community restrictions, many counties have strongly enforced leash laws or ban certain types of pets (Pit Bulls, poisonous snakes, snakehead fish, etc.)

"Master-planned communities" are often comprised of several distinct homeowners associations. In such cases the Master Association is the "umbrella" organization that provides services that are common to all of the individual Associations, such as contracts for community patrol, trash collection, common landscape maintenance, etc.