Commercial owners’ associations or COAs are nonprofit organizations that manage communities of business. COAs are the commercial counterpart of homeowners’ associations (HOAs), which manage residential communities such as subdivisions or condominiums. Understanding how COAs operate and your rights and responsibilities when your business property is subject to a COA is crucial. Having an Arizona real estate lawyer on your side to answer your questions and explain the potential impact of a COA is vital to protecting your real estate interests.
How COAs Function
While the general purpose of HOAs is typically to maintain the decorum and aesthetics of a neighborhood, the purpose of COAs is to preserve commercial appeal and functionality in a retail area, office building, or other commercial area. Like a HOA, a governing board of directors consisting of property owners or representatives operates the COA according to a set of bylaws. However, COAs also may be subject to other local rules or ordinances and state laws, such as zoning ordinances or building codes.
Governing Documents for COAs
Like HOAs, COAs have various governing documents containing provisions that place restrictions on property owners. However, these provisions differ from those found in HOAs due to the unique needs of business communities.
Use Restrictions
COAs generally have a document outlining how commercial property can be used. Some COAs may dictate the type or general business category located within the properties subject to the COA. Others may exclude certain types of businesses from those properties.
Advertising Restrictions
Businesses must have signage to indicate where they are located, the hours they are open, where to enter the business, and other important information. However, the COA often controls the specifics of the signage, such as the size, color, font, location, and type of sign. For instance, the COA may want the businesses to have relatively uniform signage to conform to the overall atmosphere of the business community.
Parking Restrictions
All businesses need access to employee and customer parking. However, a COA can limit the number of parking spaces per business, which may be based on the business size.
We Are Here to Help You with Your Legal Needs
Provident Law is a full-service commercial real estate law firm. Two of our attorneys, Christopher J. Charles and J. Scott Burns, are Certified Real Estate Experts with the State Bar of Arizona. Whether you are involved in purchasing, selling, leasing, or developing commercial real estate, we have the experience that you need to ensure that your interests are protected throughout the process.
Our goal is to help you understand how COAs may affect your property. With our assistance, you will know what to expect and how to respond to potential disputes with your COA. Contact the offices of Provident Law today at (480) 388-3343 or online and schedule an appointment to speak with our Arizona real estate lawyer about your legal matter.