As more of today’s buyers are choosing to purchase in planned developments and communities, considerations regarding a property’s Homeowner’s Association, or an “HOA”, is increasingly becoming a fact-of-life. All condominiums and most townhouses belong to some sort of HOA. Many detached home buyers belong to a HOA.
Most HOA’s have mandatory fees. Oftentimes the HOA’s own buildings, clubhouses, swimming pools and other recreational amenities. It is worthwhile to enlist the assistance of your attorney to review the enabling documents, budget, any pending lawsuits, insurance and other important documents for the HOA to ensure that you face no surprises after closing. A common concern is whether there are adequate “reserve funds” to cover the cost of planned maintenance or capital projects. Many states have statutes requiring the seller to disclose many of these items and provide copies of budgets, bylaws, charters and other important documents. Your attorney or buyer broker should be pleased to assist in obtaining any required HOA disclosures from the seller.
