Tuesday, February 25, 2014

HOA Docs ~ A.K.A. The Info About The Home Owners Association

When you're buying a home, usually a townhouse or condo, that has a Home Owners Association (HOA), part of the sellers disclosures are the Docs, or documents from the HOA.

Included in those are the financials, the worth and stability of the HOA. The rules, yes lots of those, the Articles of Incorporation. The way the board of the HOA is set up.

And, my favorite, the Minutes of the Meetings....HOA meetings.

Your lender is usually concerned about the financial aspect of your HOA, so I generally leave that to them. The rules, yes, you better read those for sure. The board and articles....yeah, up to you.

But, those minutes? Great fun reading those! Usually there are a few months worth. Reading them gives you an insight as to the greatest concerns of the HOA. Which neighbors are the complainers, which ones are behind in their dues, that kind of stuff. As well as what the HOA's upcoming repair projects are, any special assessments coming.

When I've got a buyer in escrow I tell them to PLEASE read everything in those HOA Docs!! But, pay very close attention to those minutes as they can give you a pretty good feel about the community you are considering moving into.

If you find that Unit A, right next the the one you are buying, is 6 months behind in their dues.....you may find they have other problems as well. If you hear that Unit C has a continuously problematic, lived there for 10 years, yapping dog....good to know, right?

So, don't just breeze through this information, read, read, read it!
 Even if it feels like an enormous amount of paperwork!

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