Buying in an HOA can be a relief for some home buyers. In light of our current economy, access to a host of amenities can have its draw. However, it is very important to know the ins and outs of an HOA before signing on the dotted line.

Know the Rules – The rule book that governs a Homeowners Association is known as CC & Rs. These are the covenants, conditions, and restrictions that detail the operations of the HOA and the rules that all owners, tenants, and guests must follow. You should study them carefully and know their basic rules. You may find that the family dog ​​is of a disallowed breed. A simple addition to your property or a new paint job can cost you violations, fines, or even expensive bonds. In most cases, correcting these violations can result in a lot of paperwork and additional fees. HOA rules can be simple deciding factors. If you don’t like being told what you can and cannot do with your property, living in an HOA community may not be for you.

It is important to know exactly what your monthly, quarterly, or yearly due is paying you. Do they give you access to community pools, playgrounds, or clubhouses? In many communities, maintenance of common grounds is covered by fees paid, but your front yard is your own responsibility. Make sure you know exactly what is covered. Paying for additional expenses may not be something you can afford.

Another key point to consider is that these fees can be increased or changed. Many homeowners associations are managed by a property management company. As is the case with any business, some management companies manage the finances of the HOA efficiently and others do not. As such, it is wise to be prepared for possible increases in Homeowners Association fees. Past performance can be a great indicator of how the Homeowners Association can handle future dues, so ask for a copy of the Homeowners Association dues for the past few years. Watch to see how often rates increase and by how much. If special evaluations or rate increases are scheduled for an upcoming date, they are usually disclosed in the CC & Rs.

As mentioned above, some homeowners associations are professionally managed and others are self-managed. Attend a Homeowners Association board meeting. Look for possible conflicts. What tactics do they take to solve them? Talk to some of the current owners. Are you happy with the association? Make sure you are comfortable with the HOA you are purchasing as they will determine what your rights as a homeowner will be.

An experienced Realtor can help you understand the nuances of a particular HOA. They can help you request copies of the CC & Rs and all other documents you want to review.