Home Owners Associations
During your home search you may come across homes, condos and townhouses that are a part of a homeowners association. You may have asked yourself, what does that mean? What does a homeowners association do? What are the pros and cons?
A homeowners association is usually formed by a developer as a non-profit to maintain some aspect of a development or community. In the case of many condos, a home owners association often handles the maintenance of the building at large. The homeowners association is normally a non-profit corporation. The association is normally funded by dues or an association fee. Most real estate listings will tell you if the home is a part of an association and the fees.
A homeowners association will have regulations and restrictions on how your property can be used. Some of them can be as simple as the yard must be kept free of clutter to more confining covenants like the house must be painted a certain color. Other associations do not have strict regulations and are concerned only with matters such as pool maintenance or grounds maintenance which may include snow removal from the community. You need to know upfront what the association expects of a homeowner in the community and a manual of these expectations, called by-laws should be provided to you.
There are pros and cons to being a part of a home owners association, it may or may not fit with your lifestyle and ideals. Below are some of both to help you make a decision as to if you are interested in moving into a neighborhood with an HOA.
Pros
• Some communities with HOAs have community parks, playgrounds, swimming pools or other amenities. Another plus is the maintance is already taken care of!
• They handle keeping the neighborhood clean and maintains up to date, they also help keep the house all looking the same to keep property values up.
• The close community concern may give owners a greater sense of security.
Cons
• If you don’t like restrictions on your own property, a HOA may not be for you. Many associations restrict boats and cars that don’t run from being stored in a driveway and certain paint colors on homes.
• If you don’t comply with the rules or fail to pay the dues, the HOA has a right to put a lien on your property.
• Fees can be monthly or yearly, so you will need to include them in your budget; many fees tend to rise on a yearly basis.
In the end, it’s really a decision about your lifestyle. Before considering a home with an owners association read the agreement. Ask the home owners in the community about the services they receive. This way you can get a feel for how happy the locals are about their association. Also, be sure to make sure you know how the association deals with issues that arise. It is better to be safe and know what you are getting into before you fall in love with that house.
