Quick and Easy Guide to Decoding Your Governing Documents
Knowing The Difference Between These Two
Simple Words Will Save You Big
While legal language is notoriously difficult to navigate, understanding that one
word can change the meaning of your entire role can help your board avoid
mistakes. Two key terms to pay close attention to as your board consults your
community's governing documents are "shall" and "may" because these two
words mean the difference between whether your board is required to take action
or not.
"One thing I've learned during my time in this industry is that you need to read
your documents with a critical eye. While there are some areas that may be open
to interpretation, generally your Declaration (a.k.a. CC&Rs) in particular is created
by an attorney with specific intent that can sometimes be easy to miss. A prime
example is what the association 'shall' do versus what they 'may' do. 'The Board
may create Rules and Regulations' means that the board can, but is not required
to create rules, whereas 'no later than April 1 of each year the board shall send
the year-end financial statements of the preceding year to owners' means that
the financials must be provided. Your association's attorney should definitely be
consulted for questionable clauses but your professional community association
manager can also help highlight areas that might be commonly misinterpreted."
— Lea Marcou, CMCA®, AMS®, PCAM®
Community Association Manager, Associa Chicagoland
