Over 50 million United States citizens live in condominium and homeowner associations, cooperatives and other planned communities. We make this choice for countless reasons. For many, it is the convenience of having a park across the street or not having to maintain lawns. For others, it is simply because all new homes are built in homeowners associations.
With all of their advantages, community associations are not perfect. They may cross the line and micro-manage or they may not. These complications oftentimes arise because of unrealistic expectations, misinformation and misunderstanding on the part of the homeowner or the board.
You will have a much more positive and fulfilling community experience if you learn all you can about a community before you buy a home.
What You Need To Know
The first question you should ask your real estate agent is whether the home is part of an association. If it is, you should obtain copies of all of its governing documents—the Covenants, Conditions & Restrictions (CC&Rs), Articles of Incorporation, Bylaws, Rules and Regulations, Design Guidelines, and so on. Make sure to read this information carefully before you buy your home. Discuss the CC&Rs with your agent, and, if you don’t understand them, consult an attorney for guidance. Many of the problems today are a direct result of a misunderstanding of one of the provisions in the CC&Rs. If only the homeowner understood the legal nature and consequences of the CC&Rs before buying the property, they would not find themselves in a costly/stressful predicament.
When you purchase your home, you agree to abide by each of the provisions in the CC&Rs as if you were entering into a contract with the HOA to follow the rules. Of course, some provisions of the CC&Rs may not be enforceable because they are unreasonable or unconscionable, but these cases are limited and few and far between. The most typical example of things you agree to do as a homeowner in an association are to pay assessments, abide by the architectural guidelines, and the like.
You should also talk to people who live in the community. Find out how they feel about how the community is run. Take a walk through the community. Learn whether the park, tennis courts, pool or other recreational facilities are well maintained. Find out if the homes well kept. Talk to the president of the association. You will learn much about how your experience will be in the association if you spend 5 minutes getting to know your president and other board directors.
