HOA Basics Explained

This is an organization which is basically non-profit and established by the members or home owners in a specific community. There are a lot of responsibilities covered by the HOA as to the smooth and right management of the properties and residents as members of their neighborhood or organization.

For instance, the conditions, covenant and restrictions are primarily implemented to serve as guidelines and sets of stringent rules and standards that all members of the organization are obliged to take part, observe and follow.

The CC&R’s guide the members and residents, especially those new in the community as to the different rules and regulations in the area. Some HOA tackles the financial and monetary spending of their funds incurred out of the membership dues or fees as to the maintenance and development of common areas and facilities. Hence, they have the consensus in deciding where and how to spend the money in their organization fund especially geared towards the repair of certain areas or facilities as well as developing and upgrading their common and shared belongings.

There are even HOA rules which cover the way you use your property and how to manage your house especially in terms of home improvement. Hence, you need to comply with the rules which state what constructions are permitted in your house and what color of paint you can use and the like. You may also come across HOA rules which basically guides you as to the usage of your common areas and facilities such as the pool and recreational and exercise rooms among others.

It is very important that you take careful research and assessment of the things about the HOA in the location where your prospective property is as well as their governance and implementation. Bear in mind that there are organizations which have their own shares in the disputes and disagreements in the community while others are basically control freaks and totalitarian in their management and governance, imposing strict rules on their members.

Make it your utmost priority to know and understand the HOA in the community that you wish to purchase your next property. Weigh if you are amenable to the rules and CC&R’s they impose and if you can devotedly comply with their standards in order to avoid violating the rules and be forced to pay the price of your failure in compliance.