Navy Fellas Realty Group

Real Estate, Residential sales and purchase

What Every Homeowner Should Know About HOA Documents

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When you purchase a home within a community governed by a Homeowners Association (HOA), you’re committing to a unique set of rules and responsibilities. Understanding HOA documents is crucial to ensure you’re fully aware of your rights and obligations as a homeowner. Here’s what you need to know and when to ask questions.

What Are HOA Documents?

HOA documents, also known as governing documents, include several key components:

  1. Covenants, Conditions, and Restrictions (CC&Rs): These are the rules that dictate what you can and cannot do with your property. They cover everything from architectural guidelines to pet restrictions.
  2. Bylaws: These outline how the HOA operates, including the election of board members, meeting procedures, and how rules are enforced.
  3. Articles of Incorporation: This document establishes the HOA as a legal entity.
  4. Rules and Regulations: These are specific rules set by the HOA board, which can be more detailed than the CC&Rs.
  5. Financial Documents: These include budgets, financial statements, and reserve studies, providing insight into the HOA’s financial health and how your dues are being utilized.

Key Points to Understand

1. Restrictions and Permissions

Read through the CC&Rs to understand the restrictions on your property. These might include limitations on exterior modifications, landscaping, and even parking. Knowing these rules beforehand can prevent future conflicts and unexpected fines.

2. Financial Obligations

HOA dues are a critical aspect of living in a managed community. Review the financial documents to see how much you’ll be paying, what the dues cover, and how often they might increase. Ensure the HOA has a reserve fund for major repairs and emergencies.

3. Enforcement and Penalties

Understanding how the HOA enforces its rules and the penalties for violations is essential. Check the bylaws, rules, and regulations to know what actions can lead to fines or legal action.

4. Dispute Resolution

The documents should outline procedures for resolving disputes between homeowners and the HOA. Familiarize yourself with these processes to be prepared if issues arise.

5. Community and Board Meetings

Participation in community and board meetings is vital. The bylaws will indicate how often meetings are held and how homeowners can get involved. Active participation can give you a voice in community decisions.

When to Ask Questions

  1. Before Purchasing: Always request and thoroughly review the HOA documents before finalizing your home purchase. If anything is unclear or seems concerning, ask your real estate agent or a legal professional for clarification.
  2. When Changes Occur: If the HOA proposes changes to the governing documents or rules, review them carefully. Ask questions about how the changes will affect you and the community.
  3. Upon Receiving Notices: If you receive a violation notice or a fine, don’t hesitate to ask for specifics on what rule was violated and what steps you need to take to rectify the situation.
  4. Budget Increases: When there is a proposed increase in HOA dues, request detailed information on why the increase is necessary and how the additional funds will be used.
  5. Before Major Projects: If the HOA plans a major project, such as road repairs or building upgrades, ask for a copy of the project plan and budget to understand how it will impact the community and your finances.

Understanding HOA documents is essential for a smooth and enjoyable living experience in a managed community. Taking the time to read and ask questions about these documents can prevent misunderstandings and ensure you are well-informed about your rights and responsibilities as a homeowner.

Understanding, Paying, and Benefiting from HOA Fees

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Are you considering purchasing a property governed by a Homeowners Association (HOA)? If so, you’ve probably come across the term “HOA fees.” What exactly are these fees, who pays them, and why are they necessary? 

What Are HOA Fees?

HOA fees, short for Homeowners Association fees, are regular payments made by homeowners to the HOA that governs their community. These fees are typically used to cover various expenses associated with maintaining and managing the common areas and amenities within the community.

What Do HOA Fees Cover?

Maintenance and Repairs: One of the primary purposes of HOA fees is to cover the cost of maintaining and repairing common areas such as sidewalks, roads, landscaping, and community facilities like pools, gyms, and clubhouses. This ensures that the community remains well-kept and attractive to residents and visitors alike.

Utilities: In some cases, HOA fees may include payments for utilities such as water, sewage, and trash removal for common areas.

Insurance: HOAs often purchase insurance policies to cover common areas and shared structures like fences, playgrounds, and parking lots. The cost of these insurance premiums is typically included in the HOA fees.

Reserve Funds: HOAs also set aside a portion of the fees into reserve funds. These funds are used for major repairs, renovations, or unexpected expenses, ensuring that the community can address significant financial needs without imposing special assessments on homeowners.

Administrative Costs: Finally, a portion of HOA fees goes towards administrative expenses, including management fees, legal fees, accounting services, and other operational costs associated with running the HOA.

Who Pays HOA Fees?

All homeowners within the HOA-governed community are required to pay HOA fees. This includes owners of single-family homes, townhouses, condominiums, and other types of residential properties. The amount each homeowner pays is typically determined based on factors such as the size of the property, the amenities provided, and the overall operating budget of the HOA.

Why Are HOA Fees Necessary?

HOA fees play a crucial role in maintaining the quality of life and property values within the community. By pooling resources through HOA fees, residents can collectively ensure that common areas are well-maintained, amenities are available for everyone to enjoy, and property values are preserved over time. Additionally, HOAs help enforce community rules and regulations, which can contribute to a more harmonious living environment for all residents.

Tips for Homebuyers

Review the HOA Documents: Before purchasing a property in an HOA-governed community, carefully review the HOA’s governing documents, including the Declaration of Covenants, Conditions, and Restrictions (CC&R), Bylaws, and budget. Understanding these documents will give you insight into how HOA fees are determined and how they are used.

Budget for HOA Fees: When budgeting for homeownership expenses, don’t forget to factor in HOA fees. These fees can vary widely depending on the community and its amenities, so make sure you can comfortably afford them in addition to your mortgage and other expenses.

Attend HOA Meetings: If possible, attend HOA meetings to stay informed about community developments, upcoming projects, and any changes to HOA fees or rules. Active participation can help you have a voice in the decision-making process and stay engaged with your community.

HOA fees are a necessary aspect of homeownership in many communities, serving to maintain common areas, amenities, and property values. By understanding what HOA fees are for, who pays them, and why they are necessary, homeowners can make informed decisions and enjoy the benefits of community living.

The Top Homeownership Expenses You Need To Know

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The Top Homeownership Expenses You Need To KnowOwning a home can be an exciting and rewarding experience, but it’s important to be aware of the expenses that come with homeownership. Understanding these costs can help you prepare for and manage them effectively, ensuring a smoother transition into your new home.

The Mortgage Payment

The mortgage payment is typically the largest expense that homeowners face. This monthly payment consists of the principal and interest on your home loan. The principal is the amount you borrowed to purchase the home, while the interest is the cost of borrowing the money. The length of your loan term and the interest rate will determine the size of your monthly mortgage payment. Keep in mind that paying down your principal faster can reduce the total interest paid over the life of the loan.

Your Property Taxes

Property taxes are another significant expense for homeowners. These taxes are levied by local governments and are typically based on the assessed value of your property. Property tax rates can vary widely depending on the location of your home and the quality of public services in the area. Be sure to factor in property taxes when determining the affordability of a home, as they can make a substantial difference in your overall housing costs.

Homeowners Insurance

Homeowners insurance is an essential expense that protects your investment in your home. This type of insurance covers damage to your property and belongings, as well as liability in the event someone is injured on your property. The cost of homeowners insurance can vary depending on factors such as the value of your home, the amount of coverage you choose, and the location of your property. 

HOA Dues

If you live in a community governed by a homeowners association (HOA), you may be required to pay monthly or annual dues. These fees cover the maintenance of common areas, amenities, and services provided by the HOA. It’s important to understand the costs associated with HOA dues and what services they cover, as they can add to your overall housing expenses. Be sure to review the HOA’s rules and regulations before purchasing a home in such a community, as they can impact your ability to make certain modifications to your property or how you use the common areas.

Budget For These Expenses Accordingly

Understanding and preparing for the top expenses of homeownership is crucial for a smooth and successful experience. By considering the mortgage payment, property taxes, homeowners insurance, and HOA dues, you can better anticipate the costs associated with owning a home and make informed decisions about your budget and financial planning.

HOAs: What Do Buyers Need To Know?

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HOAs: What Do Buyers Need To Know?There are many factors that buyers need to consider when they are evaluating a potential property. Sometimes, buyers run across properties that have to deal with something called a Homeowners’ Association, or HOA.

What Do HOAs Do?

An HOA ensures that communities look their best and function well. While HOAs were unusual several decades ago, they are becoming more common. HOAs are typically governed by a board made up of people living in the neighborhood. By ensuring properties look their best, property values could remain high; however, there could also be restrictive covenants in place.

How Much Do HOAs Charge?

HOAs can vary widely from place to place. Fees are usually charged monthly, quarterly, or annually. While some HOA fees might be less than $100, some HOA fees can be a few thousand dollars per year. HOA fees vary significantly depending on the number of people in the community and the amenities in the neighborhood.

HOAs use this money to take care of common areas in the community. For example, HOA fees are usually used to pay landscaping companies to take care of the common areas. HOA fees can also be used to take care of swimming pools, tennis courts, and golf courses that could be in the neighborhood. If there is security, the HOA fees are used to compensate that as well.

What Restrictions Can An HOA Put In Place?

There are many restrictions an HOA could place on a homeowner; however, these vary from neighborhood to neighborhood. Most of these restrictions involve the exterior of the home, as the point of these restrictions is to keep a homeowner from doing something that could adversely impact the home values of other properties. There might be restrictions on the size of trees, certain landscaping work, and patios. Make sure to take a look at these restrictions before buying a home.

HOAs Have Their Benefits And Drawbacks

Like other factors involved in buying a home, HOAs have their benefits and drawbacks. It is critical to work with a lender who understands how to read HOA covenants before making a decision. HOAs can play a significant role in what people can do with their home.

Condo Damage Caused By Contractors Hired By The HOA: Who Pays?

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Condo Damage Caused By Contractors Hired By The HOA: Who Pays?For those who live in a condo, they know that there are numerous advantages that come with this living arrangement. Living in a condo means that other people are going to be responsible for landscaping and common areas while homeowners are still able to build equity in the home.

At the same time, the HOA has quite a bit of power and one of the biggest concerns that people might have involves who pays for the damage in the event that something in the building has been damaged. There are a few important points to keep in mind.

Roof Replacement Contractors

Sometimes, the HOA might hire contractors to work on the roof. During this process, there might be a leak that develops in the roof. This could leak through and damage condos that are on the top floor of the building. This could damage the kitchen ceiling. The association might try to get out of paying to fix certain damages.

It is important to note that those who live in a condo building buy into everything that goes along with ownership. This includes the management and the contractors that are hired by the manager.

Read The Document Carefully

When people move into a condo building, there are certain bylaws they agree to follow. Sometimes, this packet might state that the unit owner is responsible for any damage to a unit that is caused by the association. The bylaws usually state something along the lines of “unit owners need to have homeowner’s insurance.” In this case, the insurance carrier should help the unit owner cover some of the costs of the repairs.

If the condo docs are drafted in this manner, then the unit owner is responsible for the repairs even though the contractor caused the damage.

File An Insurance Claim

While this might not sound like a perfect solution, the unit owner might still not have to pay for the damages. This is why unit owners need to have home insurance. The next step should be to file a claim with the home insurance company. This claim might be able to cover the cost of the repairs that were caused by the contractors hired by the HOA.

Four Common Headaches Of A Homeowners Association

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Four Common Headaches Of A Home Owners AssociationWhen you are looking to purchase a home, you might hear a lot about something called a homeowners association, often shortened to HOA. While there are benefits of having an HOA in a living community, these benefits also have their drawbacks.

There are a few common headaches that people often experience when they move into a community that has an HOA. Anticipating these problems ahead of time can help everyone prepare for what they might encounter.

The Maintenance In The Common Area

Whether you are living in a condo or in a neighborhood, the HOA is supposed to maintain the community common areas. This includes pool maintenance, lawns, landscaping, gyms, and more.

In some areas, your HOA might even be responsible for cleaning up after a storm goes through the area. Sometimes, this simply doesn’t happen. This can cause the neighborhood to look like a mess. If the neighborhood isn’t properly maintained, your property values may suffer. 

Problems With Parking

Without a doubt, parking issues are among the most common problems that you might encounter with your HOA. When someone is driving through town, traffic and parking issues are handled by the police.

In the neighborhood, the HOA is typically responsible. The bylaws of the homeowners association might even give them the right to fine people. Make sure you read the agreement with the HOA carefully. You need to know the laws as well as your rights.

Antenna Issues

It is important for you to remember that your HOA cannot control who you have handle your cable and internet connections. In addition, they cannot force you to remove a satellite dish from your house even if they don’t like the look of it.

On the other hand, if you use an antenna, there are still some HOA rules that can control its location. Make sure you read the rules if you elect to go with an antenna.

Understanding Homeowners Association Problems

Some of the other issues that you might encounter with your local homeowners’ association involve pets, holiday decorations, and other random fines. You should read up on the bylaws ahead of time so you know what lies ahead. While not every HOA creates problems, others can be a real headache.

As always, your local real estate professional can answer specific HOA-related questions on any community in the area. They’re a great first step to get answers!