Question:
I live in a 2 condo building. I own one of the units. The other unit was sold 3 months after I bought mine. So both owners are first time homebuyers.
We have ccnrs for the building and HOA insurance policy in the name of the building but don’t have a formal HOA that can be linked to a bank account in case we need to cash a check from insurance.
Currently we have a personal account in the bank, shared between the owners, to manage our informal HOA funds.
What is the best way to formalize this without attaching personal owner liability?
– Vaibhav
Answer:
It is best to formally create the homeowners association and open a bank account under the association’s name. California Civil Code Section 4200 tackles the creation of common interest development and what the requirements are. It is best to have a lawyer assist you with this process.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
