ANSWERS: 3
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If the rules conflict with the by-laws, that's a big mess... and whoever drafted the rules and by laws should have noticed that. In regular law, it would negate each other... but HOA's are funny about things like that. Can I have some more specifics?
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By laws DO take priority over rules and regs.
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By-Laws generally are used as a policy and procedure guideline. It's more like the HOW to do something rather than the YOU MUST/MUST NOT do something as in the Covenants.
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