What is a “Homeowner’s Association”? What does it mean to a buyer?

Q. What is a “Homeowner’s Association”?  What does it mean to a buyer?

A. Some new subdivisions and Planned Unit developments have a Homeowners Association.  You will find it referred to in the deed.

When you purchase this property, you are automatically a member of their Association, as are all homeowners in the development.  Sometimes, not always, there are annual dues involved.

An association is meant to help the neighborhood maintain its value by putting restrictions on future looks and function.  Some rules may be fairly general, but often they are very detailed.  Be sure you understand the documents as some Homeowners Associations can have power over many aspects of daily life.

However, should you find yourself in a dispute with a neighbor, you may find your association to be a godsend!  They have authority over anyone violating the rules and will often mediate such disputes.

You might want to consider becoming an active member of this group, as they have authority over modifying the rules.

My suggestion would be to make your Purchase & Sale Agreement subject to your Attorneys review of any covenants, conditions or restrictions pertaining to the property you are purchasing.  You would be well advised to have a clear understanding of these documents before entering into a contract.

Published in: on June 7, 2010 at 3:21 pm  Leave a Comment  
Tags: ,

The URI to TrackBack this entry is: https://nhclosings.wordpress.com/2010/06/07/what-is-a-homeowners-association-what-does-it-mean-to-a-buyer/trackback/

RSS feed for comments on this post.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: