6 questions your buyers should ask about HOAs

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02/19/2016 | Author: Editorial Staff

Homeowners associations can preserve property values and offer amenities to residents. However, potential purchasers should understand ahead of time any fees or rules associated with living in a property governed by an HOA. Here are six questions your buyers should ask:

Do the owners have to join? Not all HOAs are mandatory.

How much does it cost? Find out how much dues are and how often they are assessed.

Who should owners contact? An association may be managed by a company or by its own residents.

What are the rules? HOAs adhere to a set of governing documents that include the rules and enforcement procedures, which can range from fines to liens to foreclosure for non-payment.

What do members get for their dues? Dues cover maintenance and amenities—this can mean landscaping, swimming pools, security systems, or even patrols.

When do the association directors meet? A 2011 law supported by the Texas Association of REALTORS® mandates open records and meetings for HOAs.

Read more advice for helping a buyer decide about living in an HOA in the March 2015 issue of Texas REALTOR® magazine.  

Categories: Buyers, Homeowners, Renters
Tags: homeowners association, homeowners, buyers, hoas, magazine


Comments

Jill Schweitzer on 09/20/2016

The HOA industry is troubled, lacking laws to protect our clients, and education for agents are almost nonexistant. We should disclose the pitfalls. In AZ undisclosed violations, rule changes, special assessments, no department to go to for help…are all problems. Our clients have no one to go to to hold the HOA and/or unlicensed manager accountable. More owners are harmed by HOAS than other required disclosures such as our agency disclosure. And I ask myself, why did I have to learn this the hard way like our clients? Who is keeping education and an HOA advisory from existence?  I have a lot of HOA education on my HOA website, please check it out. Your clients will appreciate your help trying to warn them of issues they could face and of the likelihood of a special assessment.

Dottie Worthington on 02/25/2016

I will be glad when they are required to register the head of the POA that controls the transfer of the ownership. They have held up some closings waiting on them to return from vacation and it is very hard to track down who is charge of these POA’s. One guy took 3 weeks to decide if he was going to send it to Title Company.  They have way to much control.

David Rosow on 02/20/2016

I believe the correct term is now POA not HOA. POA stands by Property Owners Association. I believe the law changing this was a couple of years ago.


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The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

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