FAQ - HOA Rules - What do I need to Know as a Buyer?

Joan, I have many buyers that tell me they don't want ot be in a HOA community. Then I dig deeper and find out they only have an issue with a couple of restrictions. Not all HOAs are alike and that should be checked first before writing the contract.

Joan - this is a very good reminder for agents to explain the rules to their buyers in these covenant controlled communities to make sure they are a fit for each other.

Joan-Some can and will do the right thing without formal rules and guidelines, but others will not. Some HOAs are great and have effective elected officials and others are run by power mad dictators. Either way, they are here to stay.

It is always a good ideal to read everything talk to those that are living in the subdivision get their  take on it.

Joan:  Knowing and passing on the info regarding rules is a fairly easy thing accomplished.  But from a financing and economic viewpoint, Buyers need to know any costs associated with their HOAs ... and the health of the Association, as well.  That is definitely growing in importance prior to Closing ... and certainly for any future re-sales of the property ...

Gene

There are lots of rules with HOAs and as you say, each is unique.  We have a person locally who will review and summarize an entire HOA rules package into a nice, compact form for only about $200.  Well worth it considering what's at stake.

Joan: Excellent advice for buyers to do their homework upfront if the community has an established HOA...it could save a lot of headaches and $$$ down the road.

Joan, Buyers need to make sure they read the condo doc's and HOA guideline carefully or they could be in for some unpleasant surprises.

We are required in our contracts to produce HOA materials to the buyer. Normally our title companies do this. The next trick is getting a prospective buyer to read it.

Out here in Ohio there are very few HOA's however in Vegas almost every neighborhood was part of one. I always stressed for clients to review the HOA docs in detail. It may take time, but it's worth it for the heacaches it can save your clients later.

Joan - This is such a great explanation of what home buyers can expect if they decide to purchase a home with a HOA.

Most of the rules adopted by the HOA or Builder are for the protection of property values and stability of the subdivision.  I think it is a good thing.

It is very important for homebuyers to thoroughly read the CC&Rs of any association they are considering buying into.  The rules and restrictions can vary greatly among them.  The other thing to check for is any litigation or lawsuits the association is enduring.

Joan -- There are a lot of reasons to purchase a condo, however, buyres should be sure that their expectations are in alighment with the rules and regulations of the condo association.

Yes, good post.  I always highly encourage my clients to thoroughly review the rules and regs of the HOA as we've seen some pretty crazy restrictions.  I give them a review as well but want to be sure the clients know it is up to them and ask if any questions whatsoever.

You would be surprised how many people buy into a neighborhood and have no idea there is an HOA, much less what the Covenants contain. Thank you for helping to bring this information to the forefront.

Joan -- Your last sentence is the best advice. Be aware of the rules and regulations sooner rather than later ..... and especially where pets are concerned. Sure, you might be able to have a dog but there could be a size and even breed restriction. 

My main rule for HOA's, Never buy anything that is restricted by one!