Condo Media - October 2014 - 12

by Jack Carr, P.E., RS, LEED-AP

The Condo Paper Chase
Best Practices for Document Management

C A I

R e g i o n a l

N e w s

MAINE

his month's Condo Media will
be considering the issue of
managing all of the paperwork
necessary to operate a modern
condominium's operations and maintenance requirements. Much of this
standard document control work can
and should be outsourced to accountants, property managers, and lawyers
no matter what the size of the condo,
but let us also consider the documents
falling under a technical heading.
The first documents typically
thought of are the governing documents, namely, the declaration of covenants, conditions, and restrictions;
the bylaws and amendments; and the
rules and regulations. Filed articles of
incorporation and amendments also
12

Condo Media * OctOber 2014

come to mind. These are considered
the "permanent" documents.
The more challenging documents
to manage are the ones varying in
time of utility or risk exposure. For
this reason, contracts for maintenance, landscaping, and management
are held onto for seven years after
they expire, while insurance policies, employment, bank statements,
and tax returns are held for six years.
Here again, the professionals working
for your association can provide this
advice and physical storage, but keep
in mind, the ultimate responsibility for
record archival and retrieving belongs
to the association.
Maine has a larger share of smallto medium-sized condominiums

and homeowner associations than
other parts of the country. This
demographic and a large number of
vacation-related condos in the state
has resulted in more informal property
management with many having no
professional guidance at all. It is not
unusual to discover a condo's documents are found in a cardboard box
passed down from board secretary to
board secretary as time goes on.
The problem with documents is
they are not important, until they are.
Ease of retrieval is as important as the
safety of the documents. Obviously,
the best time to implement a document control system is at the beginning of the condo's life, but the next
best time, if a system is not in place,
is now.
Unit owners are becoming more
familiar with their rights to have access
to official records. Real estate transaction due diligence is becoming more
rigorous with potential buyers asking
more questions and seeking to review
past board minutes and other financial
records. Banks are becoming more
interested in maintenance standards,
safety violations, renter rolls, and
reserve fund planning.
More importantly, the board needs
to have the best information to make
informed decisions. In addition to the
legal, accounting, and administrative
documents listed above, the document
control system must maintain the
"technical" or physical records. These
records include copies of the original
public offering statement, marketing
brochures, construction as-built drawings, project specifications, site plans,
and plat, maps, and surveys of the
land and units. Other physical records

Condo Media - October 2014

Table of Contents for the Digital Edition of Condo Media - October 2014