The Benefits of Learning HOA Rules

Published by julia | Filed under Buyer / Seller Tips, Miscellaneous, Real Estate, Shout Outs

HOA or home owners association is a feature of developments and condominiums. Created by the developers, they are basically a co-operative society of the home owners living in the particular condominium. The HOA prescribes CCRs or covenants, conditions and restrictions to ensure protection of group interests of the home owners. It also lays down rules for garbage disposal and maintenance of common areas like pools, landscapes and street lights. When you set out to buy a home in a condo or development it is very important to learn the HOA rules due to various reasons.

Your Home Is an Asset for a Lifetime

Your home is valuable and you perhaps invest your life’s savings for buying it. If you are opting for a home in a condominium, you must obtain a copy of the CCRs, byelaws and financial statements of the HOA and go through the rules thoroughly.

Also the price of a condominium house depends on how well the development is maintained which in turn depends on the HOA rules. Studying the HOA rules helps you identify if the price is right.

Is the Membership Fees Justified?

HOAs collect fees from the home owner members for its operation. The HOA provides several services in return. For instance restrictions on parking must be backed by arrangements with a towing company. The HOA should organize security staff; make provisions for garbage disposal, pool and garden maintenance, cable TV, water and insurance. By reading the HOA rules about all these aspects you can see if the fees are reasonable.

The Condominium May Not Suit Your Lifestyle

Some times HOA rules may be too strict and may be unsuitable for your lifestyle. For instance, some HOAs don’t allow certain pets or restrict number of pets. Others limit holiday decorations, number of cars that can be parked on the driveway, renting of town houses or self maintenance of vehicles inside the condo. Some curb small children from playing in front of the house.

Penalties for Violation

HOAs can legally enforce their CCRs and penalize you for breaking their rules by imposing huge fines. These fines can turn into a lien on your home preventing you from selling it until dues are paid. Reading the HOA rules before buying the house can thus save you from unnecessary hassle and fine expenses.

The HOA rules of your development can make or mar your life in your new home. So make sure you learn them well before you take the plunge and buy the home.