Many homes in are part of a home owners community association, commonly referred to as an HOA. The most common properties to be part of an HOA are townhomes and condos. However, many single-family homes are also in community associations. The extent of involvement an HOA has for a particular community varies vastly, ranging from an on-site HOA manger to a voluntary home-owner run HOA. Before buying or selling a home, it’s important to understand the roll that the HOA plays. In fact, when selling a home, there is a disclosure that handles ALL things HOA. This from is called Community Association Fees, Disclosures and Related Issues – yes, that’s the name. We can’t make that up!
Below we have outlined many of the important questions this disclosure addresses. As a seller you must be prepared to answer these questions (with help from the HOA), and as a buyer you need to understand the questions and answers to them!
- Is the association mandatory or voluntary?
- How many units are a part of the association?
- Are their age restrictions? *Common for 55+ communities.
- Full Contact info for the association management.
- The monthly or annual HOA amount and when it’s due.
- Are there any special assessments pending or under consideration?
- Is their any threatening or existing litigation against the community?
- Are their rental restrictions?
- What does the HOA fee cover (amenities, utilities, etc)
- Additional FEES *these are VERY important as the buyer is responsible for paying these fees at closing (unless the seller hasn’t properly disclosed them, and then it becomes their responsibility)!
o Initiation Fee
o Transfer Fee
o New Account
o Move-In Fee
o Fee to transfer common area keys, gate openers, fobs, etc
o Closing Letter
There is a lot to consider when buying or selling a home with an HOA, but the experienced agents at The Peters Company are here to guide you through the ins and outs of community associations!
Written by Jennie Moshure, Lead Listing Specialist, The Peters Company