Home Owner Association’s.. What to consider?

Great, you’ve found the perfect condominium! Or maybe, a house within a planned development that has a “Homeowner Association” most commonly referred to as, HOA. If you’re serious about buying this type of property you’re going to have to do some research on your own. You’re going to want to know the Bylaws, CC&R’s, Rules and Regulations, and acquire a Resale Certificate.  As your Realtor, I will provide you with this information but it is your duty to read, and fully acknowledge the content.

The Bylaws are important: They describe how the Association is run, voting rights, and procedures. They contain rules for such things as how to call a meeting and how often meetings must be held. It is helpful for an owner or potential buyer to review the bylaws to understand how the Association functions and to be familiar with the powers of, and the restrictions on the Association. You may be surprised to find out, for example that the Association can hold closed meetings or remove a board member without notifying the owners.

Declaration of Covenants, Conditions and Restrictions (CC&Rs) These contain the most comprehensive and probably the most important information about the development and its operation. If there is anything in another governing document that conflicts with a provision of the CC&Rs, the CC&Rs win. For example, a review of the CC&Rs may reveal that owners may not have visible satellite dishes or antennas, or that all owners must mow their lawns once a week. They may contain restrictions on rental agreements and Airbnb, or the banning of them all together. The only way to know, is to read them completely.

Rules and Regulations can cover anything from prohibiting broken cars and trash in yards, to regulating the height of fences, and to limiting the number of swimmers in the pool. This is because the purpose of the Association is to do what’s best for the common good and value of the development regardless of whether all individual owners agree, the rules and regulations are often the most controversial documents in a development. For example, you might have second thoughts about purchasing in this development if you find out that you’d have to get rid of your golden retriever, because owners are not allowed to have dogs over ten pounds. Current owners should also be familiar with the rules and regulations and keep up with any changes.

The Resale Certificate: This document is prepared by the association’s leader, and is comprised of extremely important information in regards to it’s association. Here you will find any assessments levied against the unit, fees, anticipated repairs or replacement costs, judgments and suits, health or building code violations, leases, financing approval, insurance, warranties, and more. Attached with this document will be the CC&R’s, Bylaws, Rules and Regulations for your review. If after reviewing all of this information and being satisfied with all terms, then you may sign, then we may move forward!

If you have any more questions in regards to purchasing property within a HOA please feel free to reach out. I’m always happy to help. My email is courtneydavis@windermere.com

Have the best day,