Cohousing-L Mailing List: RE: Legal issues - general

[Rob Sandelin (robsan]

Stephen farley asked about legal stuff pertaining to LLC and non-profit.

Real estate law is developed at the state level so the best source of 
legal information is from someone within the state you are.   The 
Arizona non-profit law is unique to Arizona as to the details of what 
is allowed, etc.  Some generic things to look at in legal documents:
Definition of the board.
Definition of power: Does the board have decision making power or does 
the membership hold the decision making power, how and why are they different.
Voting percentages.  What percent is needed to pass.
Quorum. How many people need to be present to hold a valid meeting
Voting privileges: Who gets to vote and how.
Membership: who is a member, how is membership transferred. How is 
membership calculated: by person or by unit.  How do co-owners (husband 
and wife) get to vote.
Notice of meetings: How much notice is required for a decision making meeting
Election and removal of officers.  Does the board choose, or the membership.
Execution of instruments:  Who signs titles, checks, conveyances etc.
Conveyance authority: Does membership authorize a conveyance?
Purchase authority.  How much money can be spent without authorization, 
and who authorizes and how.
Books and records.  Who keeps them and where are they kept.  Who can 
see them, when.
Budgets.  How is the budget made, who approves it.
Accounts.  Who authorizes accounts and audits books, when and how.
Assessments.  Who approves, who pays, when and how.
Indemnification.  Can the board or other representation be held liable 
if they are acting in good faith for the community?  What about 
negligence?  State laws vary about this widely and its important.
Amendments to bylaws, how, why and who.
Abrogation.  Does failure to enforce a regulation waive ability to 
enforce it in the future?

 One way to find another lawyer for local advice is to find out where 
the local Habitat for humanity office is and call them and ask who does 
their legal work.  I have been told that Habitat tends to use good 
lawyers, and often gets idealistic, cool legal eagles that VOLUNTEER 
their time and expertise.

Rob Sandelin
Sharingwood