There are many advantages to buying a condo, townhome, single family home or other property in a homeowners association. This is because the HOA provides lots of community features, services and management that make it easier to own a property. When considering buying a property in an HOA it is important to do lots of research into the integrity of the HOA, the history and and liabilities that are present. That is why working with an experienced agent can help this process and prevent any unexpected surprises upon closing. There are THREE main considerations when buying any property in an HOA. Special Assessments - Sometimes an HOA community needs to do a large scale project like replacing a pool, repaving the roads or other obligations that go beyond the reserve funds available. In this case the community votes on a one time payment that all owners are required to pay. If a special assessment has already been approved and you are buying in the community you can expect to inherit a big one time payment due after closing! Proposed Monthly Fee Increases - With one of my recent transactions in an HOA the previous management had mismanaged the funds and a monthly HOA fee increase came into effect that bumped up to $535 from less than $400 a month. This could make monthly budgeting more difficult if the fee is set to rise after closing. Pending Litigation - There are often lawsuits against HOA communities and pending litigation could lead to a potential monthly fee increase or drain the reserve funds. Recently I saw a story in the news where an unauthorized dog attacked a neighbor and the there was a major lawsuit against the HOA for not enforcing the dog policy they had in place. Check out my video for more information about this topic!
Keller Williams Realty Danville
CA DRE # 02108792