Home Owners Association - HOA
When purchasing in a community that has an HOA or Home Owners association it is very important that you check it out. You cannot assume that it is financially stable, that it is well run or that they have no real rights over your property. Often time existing homeowners are a wealth of information that you can tap into just by talking to some people walking in the neighborhood or working out in their yards. You may not get 100% accurate information this way but it is a great way to get started and to have any real red flags come to the surface quickly.
As part of your real estate transaction you r Agent and/or escrow officer should make sure that you receive, in a timely fashion, all relevant disclosures concerning the HOA. This include but may not be limited to:
- Statement of Incorporation
- CC&R's (covenants and restrictions on proeprties in the HOA)
- Bylaws (rules under which the HOA should be operating)
- Rules and Regulations
- Age restrictions if applicable
- Budget and reserves - a balance sheet
- information on assesments and reserves (any big up coming charges or projects should be disclosed to you)
- Assessment enforcement policy
- Insurance Summary
- Amount and schedule for all assessments regualr or special
- unpaid obligations of seller
- list of defects (judgements, lawsuits, titel problems with HOA)
- 12 months HOA minutes
- Number and location of designated parking spaces (if any)
- location of storgae spaces (if any)
- Private transfer fees or taxes
- Rental restrictions
- Pet Restrictions
- Smoking Restrictions
- any document required by local ordinance
- Name of Contact for any Property Management association
Getting this information ahead of time is a must to acvoid troubles and misunderstanding down the road. Too many times in the sales process this information is delivered in a difficult to understand manner and so late in the transaction you rarely think about it. Do yourself a favor and know thse answers before you release the contingenices on your purchase contract.