Legal Definitions - unincorporated association

An unincorporatedassociation is a group of people who come together for a common purpose, but they are not a separate legal entity from the individuals who make up the group. This means that the association does not have limited liability, centralized management, or continuity of existence.

For example, a group of neighbors who come together to improve their community would be considered an unincorporated association. They may organize events, clean up the neighborhood, or advocate for changes in local policies. However, if someone were to sue the association, the individual members would be personally liable for any damages.

On the other hand, a homeowners' association is a type of unincorporated association that is formed by a land developer or homebuilder to manage and maintain property in which the developer and the builder own an undivided common interest. Homeowners' associations are regulated by statute in many states and are commonly formed by restrictive covenant or a declaration of restrictions.

Another example of an unincorporated association is a trade association. This is an association of business organizations having similar concerns and engaged in similar fields, formed for mutual protection, the interchange of ideas and statistics, and the establishment and maintenance of industry standards. For instance, the Chemical Manufacturers Association is a trade association composed of members of a single industry, while the Consumer Mortgage Coalition is a trade association composed of members having a common interest or purpose.