Know the Home Owners Association before Buying

Know the rules and regulation of an HOA before buying into one.

Home Owners Associations (HOAs), as with most every other arm of the housing market, have been experiencing there share of financial constraints since 2008.  Because of this, some are taking more and more aggressive action.  Most HOAs are underfunded, with the average association being underfunded by 52%.  Basically, they don’t have enough in emergency savings.

The best way to avoid conflict with an HOA is to know the rules before buying into one.  All HOAs have governing documents and rules & regulations.  Reading these prior to buying into a particular HOA will let you know what you can and cannot do, what you are and are not responsible for and how the community functions.

Over the last eight years, both of us have served on our HOA board.  Most problems would be avoided if owners knew and followed the rules often created before many current residents bought into the HOA.  Many, also, feel HOAs function like an apartment company and they don’t.  HOAs and apartment company work differently and the right and responsibilities of each party are different.

Know before you buy.

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