Homeowners Association Laws: A Few Facts You Should Know

Are you considering the purchase of a home that is governed by a homeowners association? If so, it is important for you to realize that there are many pros and cons that come along with the presence of a homeowners association (HOA). For instance, while the presence of an HOA can help to protect the value of your property by mandating the maintenance of surrounding properties, it can also limit your ability to make certain changes to your property, such as installing a specific type of fencing. In order to ensure that this is the right environment for you, take a moment to review the facts outlined below so that you can better understand the laws that govern this type of association.

Homeowners Associations Can Charge Mandated Fees

Running a homeowners association is not free. In fact, there can be significant costs that come along with operating this type of organization. In order to cover these costs, homeowners will often be charged a mandatory fee regardless of their participation in association events or decision making. If you fail to pay these fees, the association has the legal right to place a lien against your property and to foreclose on this lien if the fees remain unpaid. Therefore, only homeowners who are sure of their ability to keep up with all annual fees should consider buying a home in community which relies on a HOA.

HOA Properties Will Typically Be Deed Restricted

The law provides homeowners associations with the right to impose certain restrictions on homeowners who live in their community. These restrictions will be described in the deed to your property and will often relate to the ability to make changes to your property. For example, many homeowners associations will choose to restrict what type of fencing can be used, as well as what type of permanent structures can be installed on the property. Many associations will also choose to restrict the right of a homeowner to rent or lease their home.

These restrictions help to ensure everyone's property value remains high by preventing one neglected property from driving down the value of the surrounding properties. These restrictions can also create a uniform appearance that will help to attract potential home buyers if you should ever choose to sell your home.

On the flip side, these restrictions can also prevent you from enjoying your property the way you intended and may result in hefty fines if you break any of the association rules. Be sure that a HOA is a good fit for you before deciding on a community. Contact a company like Cornerstone Properties Inc for more information.