Loloma Cove Condominiums

What Loloma Cove Condominiums's governing documents say

This is the First Amendment to the governing documents for Loloma Cove Condominiums in Scottsdale, AZ. It modifies the original Declaration to add requirements for a reserve fund, insurance compliance with FHLMC standards, and protections for first mortgagees, among other changes. This document does not contain the full set of community rules; it only amends certain sections.

• Reserve fund: The amendment adds Section 10.16, requiring that regular assessments include an adequate reserve fund for maintenance, repairs, and replacement of common elements that must be replaced periodically. The reserve is to be funded through regular monthly installments rather than special assessments.
• Insurance compliance: New Section 11.5 requires the Association, Board, and owners to carry all hazard, liability, fidelity, and other insurance required by the Federal Home Loan Mortgage Corporation (FHLMC) or its successor, as those requirements change over time. The Association must provide evidence of such insurance to any mortgagee, insurer, or guarantor upon request.
• Mortgagee priority and liability: Amended Section 16.1 provides that liens for assessments on a unit are subordinate to a first mortgage or deed of trust. A first mortgagee who acquires title through foreclosure is not liable for pre-acquisition assessments; those assessments are released as a lien and become common expenses collectible from all owners. However, after acquisition, the mortgagee is liable for assessments accruing after title is acquired.
• Restrictions on major actions: Under new Section 19.4, certain major actions (abandoning the condominium, changing pro rata interests, partition or subdivision, selling common elements, or using insurance proceeds for other than repair) require prior written approval from at least two-thirds of first mortgagees (one vote per mortgage) or unit owners (other than the Declarant). This does not limit statutory rights in cases of condemnation or substantial loss.
• Management contracts: New Section 27 limits management agreements to no more than three years. Any such agreement must allow termination by either party without cause and without a termination fee on 90 days' or less written notice.
• Notice to mortgagees: New Section 26 entitles a first mortgagee or beneficiary of a first deed of trust, upon request, to written notification from the Association of any default by a unit owner under the governing documents that is not cured within 60 days.
• What this document doesn't cover: This amendment does not address leasing restrictions, pet limits, age restrictions, parking rules, architectural review, or any other day-to-day operational rules. Those would be found in the original Declaration and other governing documents.

Plain-language summary generated from the governing documents on file for this community. It may be incomplete and is not legal advice — read the full documents below or consult the official recorded versions.