You’re often required to become a Homeowners Association (HOA) member if you buy a property in planned communities like subdivisions, condominiums, and other high-end villages. These neighborhoods usually have homeowners associations in place that require membership as one of the conditions of your home purchase.

But before you decide to purchase a home property, you must first know some vital information about the homeowners association governing that property. 

Some Valuable Things You Should Know About Homeowners Associations

1. Its Purposes

All groups or associations have their own purpose for being. People don’t group together for nothing. So it’s crucial that you become aware of the purposes of the homeowners association that you may want to join or where you’re required to be a member.

Knowing its purpose will put weight on your decision to join the community or not. Some people, especially homeowners, associate it with mutual security and welfare. Keeping and maintaining peace and order and keeping the safety and exclusivity of the community are also some of the homeowners’ association goals.

You must ensure that the homeowners association’s purposes will be beneficial to the home mortgage program you want. Some association objectives, like property usage, may conflict with your mortgage provisions. 

Whatever its aims and objectives, they are your deciding factors whether to buy a home property in the association’s community or not.

2. Its Governing Documents

The legality of the association to represent the community is an essential factor as you decide to become one of the homeowners. The documents that express the association’s legal personality will either confirm or void your ownership.

So, it’s vital that you know whether the association is registered correctly and has the legal capacity to contract and transact businesses for and on behalf of the homeowners. 

It would be best if you’re briefed with the associations’ by-laws, articles of incorporation, and other governing documents. Knowing these documents will help you abide by the governing bodies rules and regulations. Otherwise, you might have penalties and surcharges for violating them. Worse, if you get locked out because of these violations.

Registered HOAs have the right to impose rules and regulations for the community, including restrictions on the use and appearance of properties, as well as parking and landscaping in condominiums. There are even provisions like low fencing or no fence for subdivisions and other landed communities. 

The dues and regulatory fees are also listed in these papers that might tag you in default without your knowledge. It’s why knowing your HOAs governing documents is necessary for ease of living in the community. 

The conflict resolution provision is also specified in your HOAs rules and regulations master file. You must ensure that the homeowner’s and the association’s interests are well protected according to these policies. You’ll never know you might be one of those aggrieved homeowners later.

3. Its Governing Bodies

Knowing who decides, processes and other key people in your HOA is always essential. As you choose to live in a community, be it a subdivision or a condominium, it’s always handy to know who to talk to regarding your membership or other community concerns.

In most cases, the community elects the board of directors to serve as the organization’s governing body. The board members will be accountable for implementing the regulations outlined in the HOAs governing documents. 

HOAs, as represented by their officers, are also accountable for managing the community’s finances. It includes the collection of dues and fees from community members, the payment of bills, and the upkeep of financial records. Overall, the governing officers’ responsibilities include the making of decisions that affect the general welfare of your HOA. 

4. Its Property Values

The presence of homeowners associations can have a good or negative impact on property values by preserving the overall aesthetic and livability of the neighborhood. If you plan to invest in a promising property, you need to check the property restrictions set forth by the HOA.

Some association provisions are too restrictive, which can cause property values to drop. It may not work well with your expected property returns or income, especially if you’re in a rental business. 

In Sum

It’s always best to check HOA property and community provisions before purchasing your condo or residential unit. You can negotiate some of these rules and find workarounds that will benefit you and the association.

Feel free to browse through the links and check out all the valuable things you need to double-check before investing in a home under a homeowners association. It’s better to be canny than sorry afterward. 

Also Read: Things to Consider When Buying a Condo

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