Auditing and Accounting Guide

  1. Articles of incorporation
    A document that creates the CIRA as a corporation under state laws
  2. Assessment
    A unit owner's proportionate share of the amount of money necessary to pay for the operation, administration, maintenace, and management of the common property, and to accumulate funds for future major repairs and replacements
  3. Association
    An organization of unit owners responsible for the operation, administration, and management of the common property. Generally, a not-for-profit corporation with membership of all owners.
  4. Bylaws
    The governing rules of CIRA dealing with rountine operational and administrative matters
  5. CC&R
    Restrictive conditions in the owner's deed that limit the use of the common area
  6. Capital expenditures
    Funds expended for improvements or major repairs or replacements of common property components that extend their useful lives or service periods
  7. CIRA
    Common Interest Realty Association. An association, also known as a community association, responsible for the governance of the common interest community for which it was established to serve. CIRA's are generally funded by its members via periodic assessments by the CIRA so that it can perfomr its duties, which include management services and maintenance, repair, and replacement, of the common property, among other duties established in the governing documents and by state statue.
  8. Common interest community
    Real estate with respect to which a person, by virtue of his ownership in a unit, is obligated to pay for real estae taxes, insurance premiums, maintenance, or improvement of other real estate described in a declaration.
  9. Common Property
    A CIRA's real or personal property to which title or other evidence of ownership is held (a) by individual members in common or (b) by the CIRA directly.
  10. Condominium
    A form of ownership of real property that combines exclusive ownership of a definced space and an undivided interest in the common elements. A CIAR is not a condominium unless the undivided interests in the common elements are vested in the unit owners.
  11. Declarant
    A person or entity, generally the developer or converter, that legally establishes a CIRA by preparing and filing the required legal documents
  12. Declaration of Condominium
    A document that creates the condominium form of ownership and the association and defines unit owner's undivided shares in the common property, membership and voting rights in the association, and covenants and restrictions on the use of units and common property.
  13. Deed
    A legal document that transfers to a unit owner title in a unit and an undivided interest in the common property.
  14. Documents
    A set of papers creating and describing the CIRA, that may include such items as the declaration of condomiium, articles of incorporation, bylaws, and leases or contracts entered into by the CIRA.
  15. Fiduciary duty
    A special relationship of trust and responsibility held by the CIRA's BOD towards the unit owners.
  16. Major repairs and replacements fund
    Money set aside for future major repairs and replacements of the common property that is separate from money use for operations
  17. Mixed-used development
    The result of land planning that combines space for residentila and commercial use.
  18. Special assessment
    An assessment used for expenditures that were not included in the annual budget
  19. Undivided ownership interest
    Ownership in the common property that is inseparable and cannot be divided or severed
  20. Uniform condo act
    The central source of condo law
Card Set
Auditing and Accounting Guide