Talk to other homeowners in the community and see if they are satisfied with the way the Association handles things. Is it controlled by its members or a board separate from community homeowners? Is there an outside management company and are they doing their job? It's important to get the big picture on how the board does business and how the Association is run. It's important to know how the Association operates. What do you need to cover versus what is covered by the Association? What happens if there is an act of God such as flood, earthquake, or tornado? Business. It's important to investigate the specifics of the association's insurance. Limitations may be already in place or there could be a total restriction from renting. This could be a problem if you're looking for a home that you might consider renting in the future. Many associations have rental restrictions meaning that no more than, let's say, 50% of the properties can be rented. For condominiums and townhouses, there could be pet restrictions, restrictions on what you can do to the outside of your property, satellite dishes, and noise ordinances. You can also have a real estate attorney go through the document highlighting anything of concern. This document is typically quite extensive so if there are specific questions you want to ask you can certainly talk to the Association directly rather than going page by page to the document. These are basically the bylaws of the Association that all homeowners must adhere to. When you consider buying a home in an association you should receive CC & R's, which stands for covenants, conditions, and restrictions. It's important to understand that before finalizing your closing documents. This could be an issue when it comes to buying a home in the area. For instance, a recent homeowners association wanted to change the rules but needed a 70% quorum in order to do so, however, only those current on their dues could vote and 35% of homeowners were delinquent, which means they can never get the 70% until at least another 5% become current on their dues. All must pay or all can suffer the consequences. ![]() It keeps things consistent in the neighborhood and manages neighbors and homeowners but not everybody pays their fair share. Delinquencies.Īssociations, when managed well, can be a great service to other homeowners. If you're considering buying a home that does not have a reserve fund or a healthy chunk of change in the bank, understand that you may be responsible in the future for any major purchases. This could be for siding or roofing on a common area complex, clubhouse renovations, landscaping, or road repair. If for some reason a special assessment is required and there are not enough reserve funds to pay for it, each homeowner may be required to pay more to cover the special assessment. It's important to check out how much you'll be paying each month or quarter and what the reserve fund it looks like. High-rise condominiums with more amenities such as swimming pools and parks will typically have higher fees than those with fewer common elements. Fees.Įach month, quarter, or year you will pay fees directly to the Association or to the management. Here are some of the major things to know about a homeowners association. When you purchase a property in a homeowners association you automatically become a member and are obligated to financially support the Association. ![]() When choosing a home in an association it's important to know the rules, regulations, and fees before finalizing documents. HOA or homeowners associations are often common in new home developments and master planned communities around Colorado Springs.
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