What is a Homeowners Association (HOA)? ?
A Homeowners Association, also known as a Property Owners Associations or Community Association, is a private, non-profit corporation formed during the development stage of a subdivision. The purpose of Homeowners Association is to maintain the subdivision and preserve property values. Any property purchased within a Homeowners Association is subject to mandatory membership in the Association. HOAs provide services that may not be available otherwise, such as streetlights, trash collection, and recreational amenities.
What should I do before buying a home in an HOA?
Before buying a home in an HOA you should review the rules and regulations and make sure you can you are comfortable abiding by them in your daily life. You should also consider the assessment rate and make sure it fits into your budget.
When you have a contract to purchase a home, the contract tells you whether the property is in an HOA. There is also an optional Addendum for Property Subject to Mandatory Membership in a Property Owners Association that can be used to request Subdivision Information which includes a Resale Certificate provided by the HOA. Our office charges $225.00 for the Resale Certificate though this cost may vary between other management companies. The Resale Certificate will provide more detailed information including whether the subject property has any existing deed restriction violations or monies owed, whether the Association has any unsatisfied judgments against it, and whether there are any planned capital expenditures. It will also include copies of governing documents, financial statements, insurance certificates, and notices of any health or housing code violations.
?If I buy a home within an HOA, do I have to belong to the HOA?
Yes, HOAs are mandatory membership associations meaning all current and future property owners are required to be members.
What is a lifestyle community?
Lifestyle communities promote certain services, amenities, and social events for its residents. Communities built on golf courses may offer special tournaments or lessons to residents or host social events at the club house. Other lifestyle communities may be centered around family and include swimming pools, fitness centers, and parks, and host family friendly events.