In certain community associations, what is a legally binding agreement referred to?

Prepare for the Gold Coast CAM License Exam with engaging flashcards and multiple choice questions. Each question includes hints and explanations to help you excel in your exam!

In the context of community associations, a legally binding agreement is referred to as a covenant. A covenant is a formal agreement or promise that is usually included in the deed of a property or community governing documents that imposes an obligation or restriction on the use of the property. These covenants are established to maintain the community's standards and ensure that property values remain stable over time. They can pertain to various aspects, including the appearance of homes, landscaping, and behavior within the community.

Bylaws are the governing rules adopted by a community association, typically outlining how the association will be run, but they do not represent individual agreements or promises regarding property use. Regulations are often procedural rules established by the governing body but do not carry the same binding nature as covenants. Contracts, while legally binding agreements, are broader in scope and encompass a wide range of agreements beyond those related to property or community associations specifically. Covenants are specifically tailored to address the unique aspects of community living and property use within that context.

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