Why Incorporate a Homeowners Association?
Incorporating a homeowners association helps protect residents from legal action, provides extra rights and privileges, and has practically no disadvantages. By filing out a little paper work and having a few meetings you can save time and money.
Incorporation protects the association from possible legal trouble. Individual members can only be forced to pay in according with their share in the incorporation.
Benefits Of Loans
An incorporated association can take a loan from a bank. This provides larger loans and more security than an individual can provide.
Legally Hold Real Property
Unincorporated home owner's associations cannot own real property; they need a corporation or trust to do it for them. An incorporated homeowners association can.
Fill In Legal Gaps
Incorporating provides extra procedures that may fill in procedural and legal gaps. These may not be covered by regular association regulations.
Disadvantages Of Incorporation
Incorporated associations lose no rights or privileges. They are required to file an annual report with the Secretary of State however, which costs ten dollars.