4
B
• Binding Agreement: A contract which is
enforceable, such as an offer to buy or sell,
when the person to whom it is made accepts
it and communicates their acceptance.
• Board Member: Volunteers serving on the
HOA board of directors.
• Board of Directors: The group responsible for
leading the association, ensuring operations
run smoothly, and preparing for long-term
success. Every board includes four central
officer positions—HOA president, vice
president, treasurer, and secretary.
• Budget: A financial plan for an association
that estimates income and expenses for a
specific period.
• Business Judgement Rule: Actions taken
by directors in good faith, that are within the
powers of the association, and that reflect a
reasonable and honest exercise of judgment.
• Bylaws: The formal rulebook for the HOA's
day-to-day management. They establish how
the association is governed and may offer
specifics about board nomination processes,
election frequency, term lengths, quorum
requirements, and more.
7
6
5
4
8
9
10
11
3
2
12
