HOA? Know the Rules and Regulations!
If you’ve never purchased a home in a managed community (“managed” as in overseen by a homeowner association or HOA), you probably have no idea what will be included in the package of HOA documents you’ll be receiving.
That’s ok, at this point you’re not expected to. You are, however, expected to read and understand every word before you fully commit to the purchase. It's an important part of your home inspection.
HOA documents aren’t light reading. They’ve been prepared by lawyers, for lawyers so naturally they are filled with legalese. Understanding the lingo, however, is critical to the future enjoyment of your new home.
The Homeowners Association
Owning a home in a common interest community (CIC), such as a condo, townhome or even a single-family home, offers freedom from some of the day-to-day responsibilities of homeownership, such as landscape maintenance. On the flip side, the restrictions under which these features are made possible aren’t encountered by homeowners that live outside of a CIC.
The HOA is comprised of all of the homeowners in the community and its governing body is the board of directors ― typically a group of homeowners elected by the entire association. It is these folks that, among other duties, ensure the CIC’s rules and regulations, as laid out in the governing documents, are enforced. They are your fellow owners and typically volunteer for the position. I encourage you to also play an active role in your HOA.
Rules and Regulations
While the documents you’ll receive for review cover a variety of issues, pay close attention to the pages that restrict how you can use your new home. Let’s take a look at some of the more common rules and regulations you’ll find with homeownership in a CIC:
Purchasing a Home in a Common Interest Community
Soon after your offer is accepted, the HOA will send all the legally required disclosures and documents for your perusal. You will be given time to review the documents and cancel the purchase without penalty should you not like what you read.
If you decide to continue with the purchase it will be assumed by all parties that you read and understood every single word in the documents. This limits your remedies down the line should you discover a restriction you can’t live with.
Yes, the HOA documents are boring and yes, they may be challenging to interpret. To be absolutely sure you can live within the restrictions, have a real estate attorney review the documents and explain anything you don’t understand.
No matter how much you love that amazing townhome, it’s not worth purchasing if the regulations impact your lifestyle and restrict your freedom.
The Pros Of Having A Homeowners Association
Certain rules and regulations add uniformity to the community in which you live. For some owners, that adds value. Example, the HOA may have a rule that no cars can be parked on front lawns. Or, trash and debris cannot be stacked in front of and alongside your home. Broken windows have to be fixed immediately.
If you have questions about Homeowners Associations, please call me. I have extensive knowledge regarding HOA's as I've served as a board member on over 23 HOA's during my career. I'm happy to share my expertise with you and I'm just a phone call away at 562-212-4595
Welcome to our Blog!2021-02-18
Will Low Mortgage Rates Continue Through 2021?
3 Ways You'll Win When You Buy A Home This Year
6 Benefits of Homeownership Today
3 Reasons We're Definitely Not in a Housing Bubble
Why Owning a Home Is a Powerful Financial Decision
Want to Build Wealth? Buy a Home This Year
What Record-Low Housing Inventory Means for You
Owning a Home Is Still More Affordable Than Renting One
Should I Wait For Lower Interest Rates?
How to Make the Dream of Homeownership a Reality This Year
Why Right Now May Be the Time to Sell Your House
4 Reasons People Are Buying Homes in 2021
Is This The Year To Sell My House?
The Importance of Home Equity in Building Wealth
4 Reasons Not To Wait Until Spring To Make A Move
3 Must-Do's When Selling Your House This Year
Buying a Home In a Sellers Market
Why It’s Important to Price Your House Right Today
More Generations Are Living Under One Roof This Year
Turning a House into a Happy Home
What A Difference A Year Makes For Home Ownership
Homeowner Equity Increases an Astonishing $1 Trillion
The Do’s and Don’ts after Applying for a Mortgage
How Remote Work Can Power Your Vacation Home Sale
A New Way to Shop for Homes in a Virtual World
Click here to see ALL articles.