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Why are developer contributions to a Home Owners Association considered a liability?
Wiki User
∙ 10y ago
Your answer depends on the context of the term 'liability'.
If it is used in the context of the association's financials, the treasurer or auditor can give you an answer.
In another context, you may need a realtor, or association manager or attorney to give you the answer you want.
Wiki User
∙ 10y ago
Developer contributions to a Home Owners Association (HOA) are considered a liability because they represent an obligation or responsibility that the developer has towards the HOA. These contributions are typically part of a legal agreement between the developer and the HOA, outlining the developer's financial responsibilities for the community's maintenance and development. Until the developer fulfills their obligations by making the required contributions, it remains a liability for the HOA.
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If common areas in a housing community are still owned by title by the developer never titled to the Home Owners Association who is responsible for the upkeep and liability of those common areas?
This is not a legal answer; your answerer is not an attorney.If the association can verify that title remains in the developer's name, the association may be able to recover costs it has expended to keep up the common areas. Legal counsel is required to take action against the developer.The key element in your question is liability.You can ask your master insurance policy broker to verify that the association is paying premiums to cover liability in the common areas, and if indeed, as above, the title remains in the developer's name, the association should be able to pursue the developer to recover the costs of these premiums.The association's counsel can assist you, and answer your question in particular, given evidence the association can retrieve.
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Yes, it is a current liability.
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The loan is considered a liability - The value of the company is the equity.
Is tax paid on purchases an asset or liability?
Tax paid on purchases are considered a liability. Anything paid to another is considered a liability for businesses because they are spending money.
What are the drawbacks of a Home Owners Association dropping liability insurance?
Without liability insurance, should there be any accident on the property, the association will be liable to pay for defending the claim, and potentially the claim for damages.Often the trade-off between liability insurance premiums and the hourly rate for defense attorneys indicate the it's less expensive to pay the liability insurance premiums.Your governing documents will help you define your requirement as an association insofar as carrying liability insurance is concerned. Usually, carrying it is mandatory.
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If rent is payable then it is liability for business but if rent is already paid then it is not liability but it is expense.
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It is a liability
If a Homeowners Association has been filing as incorporated for 20 years but never was incorporated what liability is there?
Your association counsel or association CPA is best prepared to answer your specific question. There is no standard.
What should be considered a liability?
A liability is anything owed to one company/person by another.If you owe money to someone it is a liability.
Parish council vicarious liability?
council has a play area currently closed. Playing Fields Association wish to assume liability, but Council insure.
Does a small historical assn which uses a room in a building whose owners have liability insurance need their own liability insurance?
This is not as straight forward as it seems. If someone visited the historical association and tripped over a floor board then the buildings insurance would be liable. However if someone from the historical association mis placed a chair and a visitor fell over it then the historical association would be liable. For all types of public liability insurance visit http://www.uk-liability-insurance.info
In accounting are wages considered liability or equity?
It is an asset.
