Home owners Associations are becoming more prevelant in communtiess today. Boards are also taking more active roles in maintaing the quality of their neighborhood and community property. Buying a home in an HOA subdivison or neighborhood can be both good and bad. A lot depends on what is written in the covenants and restrictions for the community and how the members of the board interact.
I talk to a lot of homeowners in my community that were never even told about the covenants and restrictions when they bought the house. Some did not even realize there were any. I hear this from a lot of people in other communities as well. As an agent we are /should be responsible to get the buyer a copy of the covenants and restrictions to the property they are considering purchasing. Then they receive a letter in the mail letting them know they have violated the covenats and/or restrictions. They are told to correct the issue or be subject to a fine.
They may have purcahsed something or done an improvement without the consent of the board or in violation of the covenats and restrictions and not knew. Now, they may be not only out the purchase fo the item but the cost to remove it. I see this a lot especially with fences. Peopel go out and purchase certain types fo fences to find out after they put them up; they are not allowed to have that type of fence up and have to take it down.
In some cases certain improvements to your home need to be approved by the HOA board. That could eb as simple as installing a shed in yoru back yard to painting the exterior of your home.
There has been a lot of talk lately in this tough economic times about the powers of a HOA board. Homeowners are never really sure what they can and cannot do. Homeowners tend to pay their dues either monthly, quarterly, or yearly and forget about it. I have talked to some sellers when I go to list their home that do not know who is on the board, when they meet or who I can contact for a copy of coventants and restrictions. They just know the management company they write the check out to.
Without knowing you can get into a lot of problems and issues. For one, almost everyone I talk to never knew that if you do not pay your HOA dues that the board has the power to foreclose on your home. It can start out being as simple as a couple hundred dollars and end up in the thousands by the time legal fees are factored in.
The HOA board meebers can vote on improvements and spending of the funds without your consent. Things may be done without your knowledge or approval. But that is a power entrusted to them on just about every covenant and restriction I have seen over the years.
If you are looking to buy a home you will want to know if your HOA board memebers active in the community. Are they easily accessible? Do you know who they are? Do they publish newsletters? are they financially smart with your money? Are they running in the black or are they in the red? Is there a possibility of a special assessment or raising of fees?
These are all questions you need to know the answer to before you purchase a home in a neighborhood with an HOA. Not eveyone is the same. Most have very similiar attributes but can vary form neighborhood to neighborhood.
If you live in a condo or twonhome community that covers the exterior of your home...what is the age of the roof? Are you coming up in a year or so for an assessment for replacement of roofs? Are the units do to be repainted?
Ask a lot of questions if you are considering moving into a neighborhood that has an HOA...it could be the reason soemone is selling......
Dave diCecco
Realtor/Broker
www.davedicecco.com
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