A B Cs of Condominiums Edit page

THE A-B-Cs OF CONDOMINIUM OWNERSHIP

You have purchased a Gallery Condominium. You may not fully know what owning a condominium means –most of us didn’t when we purchased. This overview will help you understand how a condominium works.

What is a condominium?

Owning a condominium is like owning a single-family house – it is yours, unlike renting an apartment. It is comprised of your particular Unit and common elements designated for the common use and benefit of more than one owner (such as common hallways, basements, parking lot, etc.). Gallery Condominiums also have limited common elements like your balcony that are reserved for your exclusive use but still a common element controlled by the Association. All owners share in the upkeep and maintenance costs of common and limited common areas. You are responsible for repairing and maintaining your own Unit. You are also financially responsible for your share (share of each Unit is set by the Declaration) of repairing and maintaining the common elements.

How is a condominium formed and governed?

The setting up and governance of condominium corporations in Missouri can be found in four different sources or “governing documents” in order of hierarchy:

• The Missouri Uniform Condominium Act;
• The condominium declaration;
• Its by-laws; and
• Its rules and regulations.

The provisions of any of these documents cannot be inconsistent or contradict the provisions of a document above it.  For instance, the declaration cannot contradict the Condominium Act but it has precedence over the by-laws and the rules.  Similarly, when a new by-law or a new set of rules is adopted, these cannot be inconsistent with the Condominium Act or with the Declaration.

1. The Uniform Condominium Act.

Ultimately, the Condominium Act governs most aspects of condominiums in Missouri. It regulates the creation, the ownership and the governance of condominiums and is recorded with the Recorder of Deeds. The Condominium Act is legislation adopted by the State General Assembly. The statutes also require that a Unit owners’ association be formed as a corporation to own and manage the common elements. Gallery Condominium Homeowners Association, Inc. (“Association”) was formed as a not-for-profit corporation under Chapter 355 of the Revised Statutes of Missouri for that purpose. Articles of Incorporation are filed with the Missouri Secretary of State and by-laws are adopted. All owners are automatically members of the Association. 

2. The Declaration.

Condominium corporations in Missouri are created by the registration on title of a declaration and description. Once the declaration is registered on title, the Condominium Act applies to and regulates the condominium. The registration of the declaration is done by the developer. The declaration will define the units and common elements of the corporation, specify the boundaries, define the percentage of ownership of each unit, set the proportion pursuant to which each unit must contribute to the common expenses, etc.  The declaration also usually contains conditions or restrictions with respect to the use and occupation of the units and common elements.  . Gallery’s Declaration contains certain requirements and rules that cannot be waived by the Gallery Executive Board. Gallery’s Declaration is unique in that it covers the creation of both the Gallery and the Vanderbilt Condominiums although each has a separate Association.

3. The By-laws.

When the Association was formed as a not-for-profit corporation, Chapter 355 required that Bylaws be adopted. By-laws deal with the governance of condominium (i.e. how they are run). For instance, by-laws may deal with the qualification of condominium directors and their term of office, quorum required to hold meetings (of the board or of the owners. By-laws can also govern the management of a property. The Board must follow the By-laws and cannot waive its requirements.

4. The Rules and Regulations.

The Board can also make, amend or repeal rules and regulations. The Association by a majority vote can also do so.   Rules must be for the purpose of promoting the safety, security or welfare of the owners and of the property or assets of the corporation; or they must be aimed at preventing unreasonable interference with the use and enjoyment of the common elements, the units or the assets of the corporation.

Typical rules may deal with noise, impose parking restrictions, control what can be in the common elements, etc.  Rules must be reasonable and must be consistent with the Act, the declaration and the by-laws. Rules and Regulations usually deal with Association control over the common elements and exterior appearance of the units and buildings for various reasons. Most condominiums have a uniform look or theme that if compromised, reduces the value of the units. Well thought out and consistently enforced architectural requirements and rules help maintain uniformity, which in turn helps support the highest market values of the units.

Each of the declaration, by-laws and rules has a different purpose and are amended pursuant to a different mechanism.  Each of them, however, is equally enforceable.  Owners and occupants, have an obligation to abide by the Act, the declaration, the by-laws and the rules.  Similarly, owners are entitled to require that others comply with them. The Corporation, through the Board, cannot engage in selective enforcement but must take all reasonable steps to ensure compliance.

The HOA Board.

The Executive Board is the board of directors of the Gallery Condominiums Homeowners’ Association, Inc. The responsibility for maintaining all the common elements is given by the governing documents to the Board elected by the Association at an annual owners meeting. The Board is responsible for everything needed to maintain and preserve the whole property such as paying for common utilities like water, deciding who will cut the grass, plow the driveways, enforcing the requirements of the governing documents, etc. The Board has a duty to repair and maintain the condominium common areas. The Association may hire a manager to carry out many of these activities day-to-day. Gallery Condominium’s manager is Hunter Residential.

Costs

Who pays for taking care of Gallery Condominiums? You do. The Owners pay for it all because there is no other source of money. The only money the Association has comes from monthly assessments, special assessments, fines, and certain fees. If services and amenities increase, so would your monthly dues.