HOA Due Dilligence
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Buyers need “due diligence” when review and agreeing to HOA rules and regs.
I’ve covered the topic in the past but with today’s hectic sales market-it’s time to review the basics.
Many communities around greater Cincinnati have HOA’s. The HOA document covers things like exterior trim color, fences, backyard pools, community swimming pools, trails, amenities, clubhouse as well as fines and fees. In general, we think of an HOA is responsible for keeping the neighborhood looking good and hopefully keeping values up.
But HOA’s are like people and no two are the same. Some neighborhoods are well-oiled machines with all the parts in great working order. Other neighborhoods are not as functional and the rules and regulations are not enforced universally. One thing they all have in common is the requirement that fees are paid-irregardless of services.
The rush to get an offer accepted is prompting some buyers to waive their rights to review HOA docs. That’s your choice -but at least read them- in detail- so you know what you’re signing.
Some points to consider:
1. What is the HOA supposed to do?
2. HOA fees and expense report
3. How often does the HOA meet?
4. What’s the anticipated response time on normal problems?
None of the items are deal breakers but buyers should beware of their future commitments to the HOA. Fees can run from an annual pittance to thousands of dollars a year.
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