HOA Issues And How To Avoid Them

HOA Issues And How To Avoid Them

Approximately 25% of us that purchase residential real estate will have an HOA that manages the development or community. HOAs have unique guidelines and restrictions that can provide home buyers operational, legal and financial issues that we should consider before purchasing our next home. It is our responsibility as a buyer to perform the proper due diligence to understand all of the covenants, conditions and restrictions that are governed by the HOA!

The HOAs can control items from color and height of fences, types of plants allowed or not allowed, parking in front of homes, and yes even certain types of pets or breeds of pets allowed. Some HOAs will not allow you to purchase a property as rental property or operate a business out of a home.

If you plan to do some type of home improvement to your new home, most HOAs will require that you submit a Home Modification Request Form for them to review and approve. I have heard of several instances where homeowners performed the home improvements without HOA approval and actually had to remove the improvements because they were not HOA approved.

The HOA even has the ability and legal right to place a lien on your property if you are delinquent in payment of your HOA dues.

HOAs can be a huge benefit to real estate ownership, but as you can see they are very complicated as well as powerful entities. That is why it is so important that you read, analyze and understand the HOA for your home before you close. Source: Zillow and Leonard Baron

Steve Lester is a REALTOR living in Allen, Texas.


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Phone: 940-337-1821
Dated: September 12th 2013
Views: 1,545
About Seana: Seana is a native Texan and has lived all over the Lone Star State. She & her family now call Frisco...

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