ABA Family Legal Guide

Home Ownership

Shared Ownership: Condos and Condominiums

Legal Rights and Restrictions

What do the bylaws regulate?

Bylaws dictate how the managing board will be elected and define their duties and powers. Bylaws cover such matters as whether the board will manage the property or engage a management firm; rules critical to settling disputes that might arise; how assessments and reserves are to be determined; what restrictions apply to the lease and sale of units; and to what extent board decisions bind unit owners. Basically, bylaws cover the internal corporate operating standards. In some older condominium statutes, the bylaws may include restrictions on use and insurance provisions as well.

Although bylaws in most corporations may be altered freely by the board or by a simple majority of the members, many condominium statutes require a two-thirds or even three-quarters majority to change them. States that have adopted the Uniform Condominium Act allow a bit more flexibility, to reduce the chance that a condominium will be unable to adapt to changing conditions.