My Holiday Gift – Terms for an HOA Clubhouse Agreement

Happy Holidays From Me to You– As my gift to you, here are some important terms to include in a clubhouse agreement. It is something that I often send out in December, as a thanks to readers.  These terms provide some protection for HOA members when individuals want to use the clubhouse to have a party, and I believe it makes good sense to consider something like this if you have a clubhouse and allow use for parties.

You will definitely want some of these terms in your agreement if alcohol is going to be served.

And in any case, if the individual is be required to pick up a “events rider” to provide liability insurance protection, it should serve as primary coverage if there is any accident relating to the party.

Commonly included terms:

The charge for the use of the recreation room is ____ [Alternately, there is no charge, however, evidence of Liability insurance coverage with the minimum coverage stated and a $_____ deposit is required.]

The deposit must be paid before keys will be distributed and will be forfeited if any of the provisions herein are violated. [OPTIONAL … In addition, if the Association has to clean the room after the party, the owner will be charged at a rate of $______ per hour for the clean up.

Any checks not honored by the bank with be subject to a $10.00 service charge and, if not paid upon notice, the charge will be three times the amount of the check, as provided by California law.

No Business or Commercial Activity:  The clubhouse is not available for commercial activities.

Capacity:  Room Capacity is __ people.

Deposit and Proof of Insurance:  Evidence of Insurance Declarations Page showing proof of at least $300,000.00 in liability insurance coverage is required.

Immediate Cancellation Policy:  The Board of Directors, its officers and employee’s (including the contracted security company) reserve the right to cancel any party at any time – no questions asked.  If the police are called for any reason, the party is canceled immediately and the $50.00 deposit is forfeited.

Alcohol [is/ is not allowed.] [If allowed then add: No alcohol may be provided to minors. The undersigned accepts all liability and the indemnification provision below applies during and after the party as to any alcohol related accidents or incidents including automobile accidents involving drunk drivers who were allowed to drink alcohol at the party.

Smoking. Smoking in the clubhouse [is/is not] allowed.

Familiarity with Rules-Regulations:  The undersigned is familiar with the rules and regulations related to use of the clubhouse and related facilities at the Homeowners Association.  The undersigned asserts that they will comply with all rules and regulations relating to use of the clubhouse and will immediately report any problems with the facilities that are detected during use of the clubhouse to the Association.

Release of Liability:  The undersigned, intending is to be legally bound, does hereby waive and release forever any rights or claims for personal injury or damages which might otherwise arise against the Homeowners Association and its directors, officers, members or employees from use of the clubhouse and related facilities.

Indemnification/Hold Association Harmless:  The undersigned, in consideration of being allowed to use the clubhouse and related facilities, agrees to provide liability insurance protection during term of use of not less than ($300,000.00), indemnify and hold harmless the Homeowners Association, its directors, officers, and members, and their successors and assigns, employees, etc., from any damages sustained as a result of claims, demands, costs, or judgments arising from use of the clubhouse and related facilities.  This waiver of claims and indemnification provisions relate to any and all persons who are on the premises during the party and any accidents or incidents that result in claims against the Homeowners Association as a result of the party behaviors and actions.

In the event any legal action is instituted against the Homeowners Association, its directors, officers, or members arising from the use of the clubhouse described herein, the undersigned in addition to damages shall indemnify the Association for any attorney’s fees and/or court costs incurred in defending any actions.

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I know, I know … it may feel like overkill, but it is better to be safe than sorry – as my mother used to [and still does] say.

Happy Holidays!

 

 

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