If a group of people agree on maintenance, it may work well with a limited number of participants, but the larger the group, the more difficult the process. The most common type of association used in New Hampshire for private road maintenance situations is a non-profit company created under the number RSA 292. Although these entities are companies, the name often uses the word “association” in the title. The company (association) could be created to explain that each lot owner automatically becomes a member of the company. (RSA 292 uses the term “member” and not “shareholder”). Simple statutes would be adopted to address issues such as votes, assemblies and collections. Delinquent landlords can be the biggest headaches with private maintenance of the road. A person may disagree with the work or quality to be done and express this disagreement by refusing to participate in the fees. In the absence of a unit (association), one or more individual owners must apply for action on their own behalf and negotiate the costs with the other owners. In addition, legal actions are brought against actions. A counterclaim is indeed a new and separate action against the person filing the forfeiture action on behalf of the other owners. Legal action must be defended, and its mere existence may appear on a person`s credit report.
In previous blogs, we have looked at the difference between a private street and a relief, the new New Hampshire law, which requires private maintenance of residential streets in certain situations, and what should include private road maintenance contracts. While an agreement is an important step, the creation of an association can significantly simplify the management and application of private road maintenance contracts. Unless amended, it is both the creation of the unit and the adoption of statutes that require the signature of all landowners who wish to become members of the association. In other words, only those who join the association are bound by its rules and regulations. Even if not all owners join, an association can still be useful in imposing existing alliances against non-members. The association can also be useful in enforcing the legal obligation of owners to contribute to the maintenance of private roads. Look at the condos. Condominiums usually have a separate unit to deal with things like 1) money, 2) shares in case of collection (if necessary) and 3) purchase insurance (if you wish).
An entity also offers a layer of protection for those who play an active role, both through the mere existence of the company and through a compensation provision in the educational document. Insurance companies are used to issuing insurance policies to associations in order to protect the association`s property from damage and its executives from liability. Otherwise, individual homeowners may have to rely on landlord guidelines, which are only covered in a limited way beyond the home. Being a unit between delinquent owners or victims and the landowners themselves provides protection to members/owners of lots. However, insurance remains prudent. Similarly, every organization needs leadership. Someone has to call meetings, send minutes and sign contracts. An association created under a law passed for this purpose has delay provisions that are addressed to management. Without an association, the money must be paid into a person`s current account, while an association may hold funds in a separate account under the name of the association.