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Homeowner Associations And Homes For Sale What Buyers Need To Know
e all have heard of both residents to fly their flags,
good and bad opinions regardless of HOA rules.
about homeowner
associations (HOAs) from the Reading about such a case is
people who have to deal with them enough to make you cringe over
as a resident right down to even considering homes for sale
newspaper articles. in a development with an HOA.
Yet, an HOA can be the best thing
One case in Jupiter, Florida, for buyers of homes for sale.
between resident George Andres HOA’s can ensure that the value
and his development’s HOA went to of your home and the ambience of
Appeals Court over his having a its environment are maintained,
flagpole and flag in his front and can provide much desired
yard. An ex-marine and right services to buyers of homes for
after the violent 9-11 attack, he sale governed by HOAs.
erected a 13-foot flagpole in his
front yard. Unfortunately, the Since the late 1990s, 80 percent
HOA had changed the rules before of the homes for sale built are
9-11 and the flagpole and flag part of an HOA. During the
were in violation. The patriotic building of a residential housing
resident lost his case in lower development, developers are
court and appealed. The HOA even responsible for the exterior
attempted a forced foreclosure on upkeep to ensure the development
his home in 2005 in order to pay attracts new buyers for the homes
for more than $20,000 in attorney for sale. Otherwise, they could
fees, but the Appeals Court ruled lose money on their investment.
against them, according to The
Sun Sentinel. The case brought so When it is time to turn
much attention that the Florida responsibility for the exterior
legislature passed a law to allow upkeep over to the residents, the
developer and his/her attorney sale should know as much about
draw up the organization for an the HOA as possible before making
HOA. The developer appoints the a purchase. Homes for sale
first HOA president, vice sellers are required by law to
president, secretary and disclose this information to
treasurer, looking for a potential homes for sale buyers.
representative cross-section of
resident volunteers. In practice, Here are some things for which to
it is often those residents that look for and investigate before
have the time and volunteer for buying the HOA homes for sale:
the positions, rather than those
with actual management and/or •What does the HOA do for you,
people skills. After the first the soon-to-be owner. In their
appointments by the developer, development?
the HOA membership vote on all
subsequent board members. It is important to read all of
the rules/covenants governing
Board members oversee the HOA, homes for sale before buying. —
while a management company do not accept a seller’s
handles the day-to-day explanation. Go to the HOA office
operations. It is the board, and ask for a copy of their
however, that rules on violation membership contract. Have your
fines, can bring a court case, or attorney review the contract, and
generally make your life in the make your offer on any home for
development either a great one or sale contingent upon your
a miserable one. acceptance of the HOA membership.
In most HOA developments, What HOAs cover for the exterior
membership generally is not an differs widely between
option; so, buyers of homes for associations. Some maintain only
the streets and common grounds cars, what room might be left for
areas. Some insure the roof, visitors? This happen to one
windows, siding, gates and fences individual. He had to park in an
of resident homes — some only overflow area. The problem was
under certain storm conditions. that the overflow parking was
several blocks away from his unit
Not only do you need to know what and had only a couple spaces. The
the HOA will do for the homes for large overflow parking area was
sale, the homeowner insurance in driving (not walking)
carrier will need to know, as distance. Throwing a party in
well. If you need to insure only their home was out of the
from the walls in of any homes question; even a big family
for sale, with the siding out get-together could not be held
being insured by the HOA, your there. They eventually sold the
premiums and responsibilities home for one in a more
will be much less. accommodating development —
similar rules but closer and
• Second, you need to know your larger overflow parking areas.
responsibilities as a member of
the HOA. What rules will govern It is important to have the value
(and possibly restrict) your of your home and its surrounding
lifestyle and comfortable living ambience protected; however,
in this home for sale? buyers of homes for sale need to
ensure their lifestyles will not
Imagine purchasing one of any be overly restricted by HOA
homes for sale, where it s rules.
strictly forbidden to park on the
street. If this home had only two • Other items to know before
parking spaces that were being buying —
used by yours and your spouse’s
o How much are the membership HOA, are people who travel,
dues? single people, those wishing to
o How often does the HOA meet and keep the current exterior
where? standard of ambience and their
o What is the length of board homes value in tact, and those
members’ tenure? who seek outside amenities with
o What can be done to remove a little-to-no maintenance or
board member and for what upkeep.
reasons?
o How are the rules/covenants So, when looking at homes for
changed and how often has this sales in HOA developments, be a
occurred? smart buyer. Know what
o Have court cases been brought information you want from the HOA
by the HOA or residents against ahead of time, involve your
the HOA? If yes, what were the attorney, and make your offer for
issues and their resolutions? any of the homes for sale
contingent upon your acceptance
Most HOAs are a welcome feature of the HOA membership.
for buyers of a homes for sale.
Those buyers who most desire an
About the Author:
John Harris is an expert researcher and writer on real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more information please visit San Diego Real Estate
Read more articles by: J Harris
Article Source: www.iSnare.com |
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