When you buy property in a planned community in Texas, like Sorano, you’ll often come across various governing documents that regulate the use, conditions, and restrictions of the property. Most of these documents are provided to the homeowner during the closing process as is required by law. Many homeowners, never read these documents, until they get their first fine from an HOA, or they are told they can’t do something that seems completely reasonable (to them). Understanding the hierarchy of these documents can be crucial when disputes or ambiguities arise.
1. State Laws and Regulations
Before diving into the specific governing documents of a property association, it’s crucial to recognize the role of the state. State statutes and case law provide an overarching framework for property associations and set forth the legal environment in which they operate.
State laws and regulations can be considered as sitting above all the other governing documents of an association. Here’s why:
- Overriding Authority: No matter what an association’s documents say, they cannot violate state law. For instance, if a provision in an association’s CC&Rs contradicts a clear mandate in the Texas Property Code, the state’s law will prevail.
- Gap Fillers: State laws often act as default provisions. If an association’s governing document is silent on a particular matter, the relevant state statute may provide guidance.
- Amendment and Oversight: State laws can dictate how associations amend their governing documents and how they are enforced. For instance, certain changes to an association’s documents may require a supermajority vote of members, as per state regulations.
Texas Property Code
In Texas, Chapters 209 of the Texas Property Code is especially relevant for homeowners’ associations (HOAs). Chapter 209 pertains to residential property owners’ associations and establishes essential guidelines on various matters, including the process for fining members, meeting notifications, and access to association records. While some of these rules can appear to be restrictive, they often allow associations some degree of flexibility. For instance, while the state may set forth basic procedures for calling meetings, the specifics might be further detailed in an association’s bylaws.
2. Recorded Map, Plat, or Plan
After the State, the top of the hierarchy, we typically find the recorded map, plat, or plan. This document delineates the physical layout of the community, including individual lots, common areas, and amenities. It’s usually recorded with the county recorder’s office and sets the geographic parameters of the development. In Sorano’s case, the Plat went through the planning process and was approved by the City of Frisco.
3. Declaration of Covenants, Conditions, and Restrictions (CC&Rs)
This is perhaps the most referenced document for property owners. The CC&Rs contain the primary rules governing property use, maintenance obligations, and architectural controls. They outline the rights and responsibilities of both the association and the property owners. The CC&Rs are binding legal documents, and violations can result in fines or legal action. After the State laws and regulations, the CC&Rs are the “highest authority” in the HOA’s hierarchy.
4. Articles of Incorporation
This document formally establishes the property owners’ association as a legal entity, often a non-profit corporation. The articles specify the association’s purposes and powers. It’s foundational for the association, but for homeowners, it’s typically less relevant than the CC&Rs or Bylaws.
5. Bylaws
Bylaws dictate the internal operations of the homeowners’ association. They cover topics like how the association is run, the roles of the board of directors, meeting protocols, voting procedures, and more. They don’t cover the individual rights and responsibilities of the homeowners as the CC&Rs do, but rather the structure of the association itself.
6. Rules and Regulations
While the CC&Rs might set broad standards and restrictions, the rules and regulations get into the nitty-gritty. They provide specific guidelines about property use, such as design guidelines, contract procurement, short-term rentals, etc. Importantly, these can be more easily amended than the CC&Rs, allowing the association to adapt to changing circumstances.
When conflicts arise
Refer back to these documents in the order of precedence listed here.