So you're looking for a house to buy
Here are some questions and considerations when buying or renting a home that is part of an Owners' Association. These ideas are based from information from the Community Association Institute (www.caionline.org).
WHAT IS A COMMUNITY ASSOCIATION?
A community association may have any number of names, including homeowners association, property owners association, condominium association, cooperative, council of homeowners and common interest development. While there can be substantive differences among these types, the fundamental responsibility of an association is to preserve the nature of the community and protect the value of the property, owned by members.
COMMUNITY ASSOCIATIONS offer choices, lifestyles, amenities, services and efficiencies that people value. More than 54 million Americans choose to live in condominium and homeowner associations, cooperatives and other planned communities.
For many, a condominium or planned community can be the most affordable way to own a home. Others are drawn to the architectural uniformity of the neighborhood or the landscaping. Still others are attracted by recreational amenities and social opportunities.
You should be able to answer many of the following questions before you buy a home in a community association:
- How much are the assessments, and when are payments due?
- What do the assessments cover?
- What is not covered and, thus, what are your individual responsibilities as a homeowner?
- How often can assessments increase and by how much?
- What is the annual budget and how does it compare to similar communities?
- Does the community have a viable reserve to fund major, long-term maintenance and repairs?
- Have special assessments been levied by the association on homeowners? If so, for how much and for what purpose?
- Are there restrictions on renting property?
- Do the architectural guidelines suit your preferences?
- Is the community age-restricted? If so, what is the policy on underage residents?
- What are the rules with respect to pets, flags, outside antennas, satellite dishes, clotheslines, fences, patios, parking and home businesses?
- Are board meetings open to all residents?