Do you ever end a call with your association attorney and wonder if you really understood what he or she told you? Do you dream of receiving a letter from your association attorney that is written in plain English? We hope those are rare experiences, but if not, we can offer some help just in case. Below is a list of terms commonly used by association attorneys with translations from “Legalese” to English.

CC&R’s: This is an abbreviation for “Covenants, Conditions and Restrictions”, and, for associations, they are often referred to as the “Declaration” because the declaration typically contains the covenants, conditions, and restrictions on ownership and use of the property. This document describes the property, including common areas or common elements, if any. It also describes ways that common expenses and voting rights are allocated. The declaration of CC&R’s is one of the groups of documents known as the “governing documents” for an association and is typically the first document a lawyer will review when answering any question for an association. As discussed in a recent email, the declaration takes precedence over an association’s other governing documents.

Common Elements: Common elements refer to the portions of a condominium that are not part of an individual unit and are not owned by a single owner. The common elements are described in the declaration, and generally include the land beneath the building, the building’s foundation, the exterior building material, and central services such as power, electricity and water. Each unit holds an undivided interest in the common elements in an allocation set forth in the declaration. There can be general common elements for the use of the entire association and also limited common elements that are reserved for one or more units. Components such as balconies or parking spaces are often designated as limited common elements.

Declarant: In the most general terms, the Declarant is the person or entity who records the declaration for an association, and is typically the person or entity that sold the individual homes or units within the association. The easiest way to identify the Declarant is by looking at the signature line of the declaration. The reason it is important to know the identity of the Declarant is that the Declarant may have reserved special rights to use the association’s property, appoint directors or attend association meetings. The Declarant also has certain responsibilities to the association, such as providing a budget, providing association records, and, in many cases, providing construction warranties.

Resolutions: A resolution is simply a formal expression of a decision. The term is typically used to refer to a document, separate from the meeting minutes, that describes a significant board decision. Resolutions are used to clarify or interpret, not change, provisions in the association’s governing documents. When associations adopt rules or policies, they should always adopt them by resolution.

Fiduciary Duty: Fiduciary duty is a fancy legal term for a heightened standard of care. Many homeowners believe their boards of directors owe the association a “fiduciary duty.” Under most circumstances, this is not accurate. A volunteer, homeowner association board merely owes a reasonable standard of care (plus duty of loyalty) to the association.

These are just some of the most common terms; there are certainly many others that could use some translation. Please feel free to contact us at Barker Martin if you ever need help translating any terms from Legalese to English!