What You Need to Know About a Homeowner Association
If you are considering purchasing a residence in a community or neighborhood that has a homeowner association, or HOA, you likely have some questions and concerns. With that in mind, there are some basic facts and considerations you need to bear in mind when it comes to an HOA.
Perhaps the most important fact you need to understand is that the fees charged can vary fairly significantly from one HOA to another. Thus, you cannot assume that a particular community will have HOA fees based on what you hear from your family and friends. Before purchasing a Scottsdale residence in a community with an HOA, you need to be sure you understand the fees will be with that particular organization.
Services Provided Vary as Well
On a related note, there can be significant differences between the types of services offered by various homeowner associations. This represents another area in which you need to undertake due diligence to clearly understand what services you will be paying for through an HOA in a particular community.
Additional Fees May Exist
In addition, when it comes to fees, you need to be aware that there may be additional fees and special assessments that can be imposed on residents by an HOA. You need to closely review an HOA agreement to make sure you understand what possibly can be assessed in the way of additional fees and special assessments.
HOA Fees and Home Mortgage
If you are contemplating purchasing in a planned community with an HOA, your mortgage lender is also going to be interests in the costs and fees associated with living in that particular neighborhood. HOA fees impact your budget and available funds and a mortgage lender considering extending a loan to you is going to want to know the extent of that impact on your overall financial situation.
Impact of Covenants
Covenants are binding contractual terms that you must abide by. Thus, you must make certain that you fully understand the specific covenants maintained in a particular planned community before you purchase a residence. As the cliché goes, you definitely need to read the proverbial small print. You don’t want to end up in a situation in which you purchase a residence and then discover covenants that you will find difficult or even impossible to follow. HOAs are notorious for being highly diligent in enforcing covenants.