What is an HOA?

What is an HOA?

An HOA or Home Owners Association, is a group of Home Owners sometimes a corporate entity that manages the community. There are usually rules and restrictions that are intended for the best interest of the community. For example; no chain link fences allowed, fences no higher than 5' or sheds no larger than 8X10 and must match the color scheme of the home.

The details of an HOA are called the HOA Docs or Home Owners Association Documents. Once you enter into a contract with a seller on a property with an HOA, if the offer was written properly, the seller will need to provide a copy for the buyers review with in a designated amount of time. The buyer then has a limited amount of time to review the documents and accept them or ask to be released from the contract because of them.

The HOA charges a fee to the residents for the maintenance of the community as explained in the HOA Docs. The amounts are broken down as quarterly, monthly or annually and made part of the listing so potential buyers are aware of the additional cost.

HOA fees are not negotiable as part of a real estate transaction.

What is an HOA?