When purchasing a home in a community, you may come across the term "homeowners association" or "HOA." A homeowners association is a legal entity that is responsible for managing and maintaining common areas and amenities in a community, such as a neighborhood or condominium complex. In this article, we'll dive into what a homeowners association is, the different types of HOAs, what a HOA does and doesn't do, the cost of a typical HOA, and the homeowners resale certificate when selling a home.
Types of HOAs
There are two main types of HOAs: voluntary and mandatory. Voluntary HOAs are typically found in communities with amenities such as a community pool, clubhouse, or park. Homeowners can choose to pay annual dues to gain access to these amenities. Mandatory HOAs, on the other hand, require all homeowners in the community to pay dues and follow the HOA's rules and regulations.
What a HOA Does
A HOA is responsible for maintaining and managing common areas and amenities in the community. This can include maintaining landscaping, repairing roads and sidewalks, and hiring security personnel. In addition, a HOA may enforce rules and regulations to ensure that all homeowners comply with certain standards, such as maintaining their property or adhering to a certain aesthetic. HOAs may also organize community events and activities.
What a HOA Doesn't Do
It's important to note that a HOA does not handle all aspects of community management. Homeowners are responsible for maintaining their own properties, including landscaping, exterior maintenance, and any repairs needed. In addition, a HOA cannot provide emergency services, such as police or fire protection.
Cost of a Typical HOA
The cost of a HOA can vary widely depending on the community and the amenities provided. HOA dues can range from a few hundred dollars to several thousand dollars per year. The dues are typically used to cover the cost of common area maintenance, amenities, and services provided by the HOA. Before purchasing a home in a community with a HOA, it's important to carefully review the HOA's financial statements and budget to ensure that the dues are reasonable and that the HOA is financially stable.
Homeowners Resale Certificate
When selling a home in a community with a HOA, the seller is typically required to provide a homeowners resale certificate. This document provides information about the HOA, including the amount of dues owed, any outstanding violations or liens, and the current state of the HOA's finances. This document helps potential buyers understand the financial obligations and responsibilities associated with purchasing a home in a community with a HOA.
In conclusion, a homeowners association is a legal entity that manages and maintains common areas and amenities in a community. There are two types of HOAs: voluntary and mandatory. HOAs are responsible for maintaining common areas and enforcing rules and regulations to ensure that homeowners comply with certain standards. The cost of a HOA can vary widely depending on the community and amenities provided. When selling a home in a community with a HOA, the seller is required to provide a homeowners resale certificate to potential buyers.
Contact Texas Roadrunner Realty when you are ready to start the process of buying or selling a home.
Written by: Texas Roadrunner Realty
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