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HOAs need to use contracts for everyone’s benefit

On Behalf of | Jul 12, 2023 | Homeowners' Associations

New property owners may be required to join a homeowners’ association after purchasing a home. The goal of an HOA is, broadly, for homeowners to create a community together and to offer some level of regulation and conformity. For example, an HOA may have standards for how houses can be designed, decorated or renovated. It may have standards for lawn care or where people can park vehicles.

An HOA can also offer services to members who are within the community. Those members have to pay HOA dues or fees on a consistent basis, and the money generated is then used to pay for the services. An HOA could have a recreational area with a pool and a tennis court, for instance. Many HOAs offer snow removal services or leaf removal services. When everyone pays a small amount together, the whole community can receive the benefit of those services.

Ideally, all services should be contractual

For those running the HOA, it’s important to have proper contracts in place for these services. Contract terms can address things like:

  • Insurance
  • Maintenance
  • Landscaping and lawnmowing
  • Service for trash removal

These contracts are important for many reasons. For one thing, they define the terms of an agreement and the price of benefits so that everyone knows exactly what services will cost. Additionally, a contract guarantees that those services will actually be rendered. After all, the homeowners who are living in the community are already paying their dues every month. They don’t have to buy the services directly, but they will understandably be very frustrated if they have paid dues and services are not rendered. A contract helps to ensure that services will be provided on time and that they are paid for.

Establishing proper contract language can be complicated. HOA officials need to be sure that they understand all the legal steps to take to safeguard their interests and the interests of their community. Seeking legal guidance is a good place to start.