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BYLAW AM
WHAT IS A BYLAW AMENDMENT?
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Associations are not legally required to amend their documents but-
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Directors can be misled as to their duties and responsibilities by relying on outdated provisions
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The legal documents may not accurately set forth the legal requirements for preparation and distribution of financial reports
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The legal documents may provide certain limits for notices of meetings that may no longer be legally correct because of statutory changes.
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Members may be misled into believing the documents accurately’ describe members’ rights, legal procedures, etc.
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Documents may fail to take advantage of liberalized rules regarding meetings, participation by members, telephone meetings, etc.
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Why should HOA documents be amended?
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To eliminate obsolete provisions
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To eliminate provisions no longer observed or enforced
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To eliminate provisions that conflict with current laws
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To eliminate provisions required by the Department of Real Estate in a start-up project that are no longer needed
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To eliminate developer privileges no longer being used, such as two-class voting or exemption from use restrictions.
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To improve poorly drafted documents by clarifying ambiguous provisions
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To tailor documents to fit the living experience of owner/members
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To provide for changes in technology (satellite dishes, home office use, etc.)
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To make documents more “user friendly” - better organization, add a table of contents and descriptive paragraph headings, etc.
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To eliminate or correct mistakes and errors.