Homeowners associations (HOAs) are sometimes reviled — but many homeowners love them because they help maintain their standard of living and protect their property values.
That’s why it’s increasingly common for planned communities, condominiums and other housing developments to have HOAs — and that puts a bit of a unique burden on both buyers and sellers.
Here’s why sellers need to make buyers aware of the HOA
Generally speaking, it’s “buyer beware” when it comes to most purchases — but real estate comes with rules that are designed to protect the unwary.
Sellers living in an HOA need to tell their potential buyers that they would be part of an HOA, and what they need to anticipate when it comes to dues. They also need to make sure they understand the covenants, conditions and restrictions (the CC&Rs) that apply to the property under the HOA.
Why sellers need to inform the HOA of their plans
Again, it comes back to the basics: The dues, fees, and those CC&Rs. Before a resident can sell, they need to check things like:
- Whether there are any outstanding dues or fees of any sort that must be paid, first
- Whether they need to pay any fees to transfer the HOA membership and paperwork following the sale of the home
- What the bylaws of the HOA agreement say about procedures that need to be followed during the property transfer — including whether the buyer must pre-pay any annual fees and any inspection requirements
- How long they have to forward the CC&Rs and bylaws of the HOA to the new owner
- Any other rules that have to be observed to make the transition complete
Don’t let your homeowners association get entangled in a real estate deal gone awry. If you have questions about the HOA’s ability to enforce rules surrounding a sale, it’s time to get some clear legal answers.