Important Facts on Buying an HOA Home
A Homeowners Association (HOA) is an organization established to govern a community so that property values are increased, and a sense of community is nurtured. HOAs can vary a lot from one community to the next, and some are much more active than others.
If you are not familiar with HOAs, there are some things you will want to know before you buy an HOA home for the first time.
Suppose you are buying an HOA home for the first time. Most of the information you will need to know will fall into one of two categories: HOA fees and the basic rules and regulations stated in the association’s governing documents or Covenants, Conditions & Restrictions.
HOA fees can vary from community to community based on the HOA’s size, amenity offerings, common areas, and more. As a potential buyer, it’s essential to know what the HOA fees are and how they are assessed in the HOA community where you want to buy a home. To help you better understand HOA fees further, you may want to know the last time fees were increased and by how much to give you an idea of what you can expect in the future. Another HOA fee to learn and ask about is what is covered and included, for example, in the maintenance of amenities and common areas.
HOA Rules and Regulations
You can save yourself some future aggravation by being thoroughly knowledgeable about the HOA’s rules and regulations. Some common HOA documents that you may receive are:
- Articles of incorporation: This will include necessary information about the HOA.
- Bylaws: These rules govern how the HOA works, including things like how and when meetings are held and what may be voted on.
- Declaration of Covenants, Conditions, and Restrictions (“CC and R’s): These are the rules and regulations that homeowners of the association agree to when purchasing a home in an HOA community.
- Rules and regulations: There may be an additional set of rules and regulations that must be followed. This will depend on your particular HOA.
- A current billing statement of homeowner’s dues: This is an assessment of the dues you owe at the time you purchase the property.
One of the things that homeowners’ notoriously find themselves at odds with their HOA’s over is the specificity of restrictive rules and how they are enforced. Do yourself a favor and make sure that the rules and regulations of the HOA are things you can comfortably abide by before purchasing a home there.
Advantages of an HOA
When properly managed, effective HOA’s help to protect the property values in a neighborhood. They can help to foster a sense of community and togetherness. It is also nice to have an HOA during unexpected problems as they can often be very helpful in organizing responses and helping everyone to find the help they need.
Understanding what you’re getting into ahead of time, ask the right questions, and take the time to ingratiate yourself with your community. By doing so, you not only help create a more cohesive community, but you will have a better relationship with your neighbors and HOA over the long-term.
AR Management can help boards with property, fiduciary, and decision management. If your HOA is looking for assistance, contact us today.