Home Owner Association Restrictions - Read Before Buying
Many communities have associations for homeowners, property
owners, condo owners, or similar associations. The presence of a
homeowners association, also known as "HOA", introduces another
layer of rules and regulations to consider when buying a home.
Some people love these associations and some hate them.
Homeowners' Associations
Some associations have very simple rules such as no abandoned,
non-working motor vehicles and no grass above ten inches tall
are allowed. Others have architectural review boards that must
approve your paint scheme before you can repaint your house. I'm
serious.
I was once looking at a townhouse with a potential buyer, and a
neighbor knocked on the door to hand deliver a notice that the
door had been painted without permission (it was a deep, wine
red). The notice went on to state that the door would have to be
returned to its original dark green color or an exception
applied for within ten days. Although she liked the townhouse,
the potential buyer decided she did not want to live with this
sort of micromanagement.
Some associations add a significant amount of cost to the home
purchase via high monthly, quarterly or annual dues payments. An
aggressive association may also attempt to issue levies on
homeowners for improvement projects. My husband and I once
looked at a penthouse condo on the outer banks of North
Carolina. I was reviewing the annual budget for the condo
association, and noticed a twelve thousand dollar per unit levy
made during the prior year. I asked about it and was told that
it "depends upon the 'beach push' situation." Further
questioning elicited the information that when hurricanes or
severe storms eroded the beach, fresh sand had to be brought in.
Not only did it have to be brought in, it had to be pushed up
into dunes and the dunes planted with sea oats and grasses! I am
all for preserving the environment, but the twelve thousand
dollar levy certainly made me nervous.
If you are considering a property controlled by an association,
watch out for the following:
1. Sometimes associations limit what pets owners may have
2. If the association allows pets, it may limit the hours they
can be outside.
3. Parking places may be assigned coupled with an aggressive
towing policy.
Some associations maintain pools, tennis courts, elevators,
trash collection, snow removal, grounds maintenance, provide bus
or limo service, concierge service, and in general make life
pleasant and trouble free. While these are nice benefits, make
sure you are comfortable with the costs associated with them.
Look Before You Leap
So, as you can see, whether your concern is protecting the value
of your investment (no junk cars), maintaining your freedom to
choose (you want an eggplant door, a place to park the company
truck, and/or to build an addition with a family room and a new
kitchen), it's very wise to check out those things which can
limit your control and increase the cost of home ownership
before you buy.