Friday, June 1, 2018

Beginners Guide to HOAs

When you purchase a new Home in many cases you will also become a member of the community Home Owner's Association or HOA.

Most people have a general idea of the purpose of an HOA but it's important to understand that there is no one set of rules for how and HOA will operate.  There are certain legal requirements for all HOAs but be aware that individual HOAs may operate under very different rules.

Some subdivisions and most non-subdivision homes won't be governed by an HOA but before making any real estate purchase you should make sure what HOA rules may apply.  Property listings will commonly include information about HOAs and the required dues but it's wise to double check when listings state that there is NO HOA.

Once you've established that there is an HOA you need to find out how much the HOA dues are and what costs the HOA is responsible for.

In North Carolina the seller's Disclosure Statement will usually provide much of this information but the best way to be sure about the HOA rules, responsibilities and costs is to contact the HOA directly or to ask the seller to provide the necessary documentation.

HOA documentation will often be referred to as the 'CC & Rs' - that is the 'Covenants, Conditions and Restrictions'.  There will also be a set of Bylaws.  Between them these documents will outline the various responsibilities of the HOA, the rules restricting the homeowners within the HOA and the fundamentals of how the HOA is set up.

Make sure you review these documents and understand:
  1.  What if any maintenance on your lot and building the HOA is responsible for
  2.  What if any maintenance in the community your HOA is responsible for
  3.  What communal facilities are paid for by the HOA and are there any additional fees for using them
  4.  What rules and restrictions about what you can do at your home & in your yard

1.  In Townhome and Condo communities HOAs are often responsible for elements of exterior building maintenance. Make sure you understand what items are covered and which are not.

2.  Many HOAs are responsible for entryways and landscaping in common areas.

3.  Often the neighborhood pool, playground, pond etc. is the responsibility of the HOA and you have a right to use them as a member of the HOA.  However, this isn't always the case and some communal facilities have rules about who can use the facilities or even extra fees.

4.  Most HOAs have rules in place to limit and govern the appearance of the properties in the community.  They may govern what color you can paint your house, whether you can park on the street, what kind of fence you can install, holiday decor etc..  Make sure that you take time to understand these rules before buying the house.

Strong and effective HOAs can have a positive affect on your property value so once you own a
house in a neighborhood with an HOA it's a good idea to stay involved so that you can have a say in how the HOA is managed and how your money is spent.  Although many Associations hire a management company to manage their Day to Day operations the HOA Board and the HOA membership retain control over spending and making any changes to the rules. There will be annual membership meetings, members will receive an annual budget notification and you can decide to run for a position on the Board.

I hear many complaints about HOAs but there are significant benefits to living in a community where there are uniform regulations and clear rules.  When you find a house that you like it is VERY important to make sure you understand the HOA rules or the implications of not having an HOA before you buy.

If you have more specific questions about HOAs or need help deciding whether a house in an HOA subdivision is the right choice for you please get in touch.  
We have considerable experience of working with clients in many different HOAs and in subdivisions with no HOAs and are happy to help!


Call/Text/Email Any Time
Real Estate Advice, Local Knowledge & SO Much More!


Louise Norton
704 408 0733
louise@charlotteandthelake.com

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PO Box 481487, Charlotte NC 28269




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