If you’re considering moving into a property located within a homeowners association, there are a few important things you must consider first. Today I’ll list five critical steps to take before making your decision.
Looking to sell a home in Southern California?
Looking to buy a home in Southern California?
When buying a property within a homeowners association (otherwise known as an HOA), there are five important things you must do.
Regardless of the type of property you move to, whether you’re moving to a condominium, townhouse, a planned unit development, or a home in a gated community, these five things will be important considerations to keep in mind as you proceed.
1. Make note of the budget and reserve study. This is especially important if you’re moving to a condominium or any building where you share walls, since homeowners associations will, in this case, be responsible for taking care of the exterior of the property. It’s therefore important that the association has a healthy budget. As far as reserve studies go, not every homeowners association has done one. But they really should. If they have done a reserve study, you will be able to see what the plan is for the building’s next 30 years. And if a homeowner association’s budget falls short of being able to cover these plans, this is a definite red flag.
2. Read the rules and regulations. When reviewing these stipulations, you may certainly ask questions if you need clarification. Things like pet or parking restrictions will be important to consider before you make the decision to move into an HOA community.
Before you make the commitment of moving into a property in an HOA, it’s important to understand what kind of financial obligations you’re agreeing to.
3. Read all available minutes for the homeowners association. Some communities may only hold periodic meetings. Others still may have just one meeting per year. Whatever the case may be, getting the minutes for at least the last year should alert you to what concerns, complaints, or comments are being raised.
4. Check to see if there are going to be any dues increases or special assessments in the near future. Before you make the commitment of moving into a property in an HOA, it’s important to understand what kind of financial obligations you’re agreeing to. If the cost of a scheduled repair is going to translate to increased expenses on your part, this is certainly something to think about prior to making your move.
5. Find out if the building or community is under litigation. If it is, this could impact the financing that may be applied, as well as your own pocketbook. You could be personally impacted if the HOA is sued.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.
