When you find your dream home, you might learn that it belongs to a homeowners association. An HOA sets and enforces rules that are intended to maintain order in the neighborhood and keep property values up.
What You Should Know About Rules in an HOA
A homeowners association has a list of rules called covenants, conditions, and restrictions, or CC&Rs, that members are required to follow. Each HOA sets its own rules, and they can vary widely.
Rules typically cover home maintenance and limit the ways that members are allowed to decorate their houses’ exteriors. For example, HOA members might only be permitted to paint their houses certain colors. They might also have to follow strict rules related to lawn care and might not be allowed to park vehicles in their driveways. Some people enjoy living in neighborhoods where homeowners are required to care for their houses because that can help maintain property values. Others feel that HOA rules are burdensome and want to have more freedom in how they decorate and maintain their properties.
Individuals who violate an HOA’s rules can face disciplinary action. The board can require them to make changes to comply with the rules. An HOA board can also fine members for violations.
Costs Associated With an HOA
People who belong to a homeowners association share the cost of maintenance, repairs and amenities for the community. An HOA can handle services such as snow removal and maintain a pool that only members and their guests are permitted to use. In exchange, members pay dues on a regular basis. They might also have to pay special assessments from time to time to cover the cost of major repairs or renovations.
Decide Whether You Want to Live in a Community With an HOA
Sometimes people who move into a neighborhood that’s governed by an HOA can choose not to join. In that case, they don’t have to pay dues, and they don’t get to enjoy the services and amenities that members do.
In many places, opting out isn’t an option. If the house that you’re interested in has a mandatory HOA, you’ll be required to join and follow the rules if you buy a house there. You’ll also be required to pay dues and special assessments.
If you’re thinking about buying a house that belongs to an HOA, request a copy of the CC&Rs and review it carefully. Ask yourself if you would feel comfortable living with those rules.
If the answer is no, and if opting out of HOA membership isn’t an option, it might be in your best interest to pass on that particular house and keep looking. If you think you can live with the rules, or if you have the right to opt out, you can move ahead. Discuss any questions and concerns you have with your real estate agent.
