Essential Questions to Ask

Joining a homeowners association (HOA) brings various responsibilities and benefits. Before committing to a home purchase in an HOA community, consider these key questions to make sure it's the right fit for you.

1. Understand the Fees and What They Cover

HOA fees are mandatory, and they help maintain the community's shared spaces. Typically, they cover:

• Landscaping, snow removal, and common area maintenance.
• Amenities like pools, gyms, parks, and trails.
• Insurance for shared spaces such as clubhouses and pools.

Knowing what your fees contribute toward can help you budget and understand the perks of living in a managed community.

2. Financial Stability of the HOA

A well-funded HOA is essential for maintaining the community’s value. When reviewing HOA documents, look for:

• Budget transparency – Where does your money go?
• Reserve funds – Are there savings set aside for emergencies or major repairs?
• Debt and delinquencies – High delinquency rates on dues could signal financial issues and lead to service cuts or extra fees down the line.

An HOA in poor financial health can impact the value and upkeep of homes in the community.

3. Governance and Enforcement

Understanding the leadership structure of the HOA can clarify how decisions are made and disputes resolved. In new developments, the HOA may be managed by the builder until the community is fully sold. Important questions include:

• Who enforces the rules and manages the HOA?
• How are violations handled, and what are the processes for conflict resolution?

4. Upcoming Fees or Special Assessments

HOAs may implement fee increases or special assessments for major repairs or improvements. Reviewing recent board meeting minutes can reveal potential upcoming costs, which can help you avoid unexpected financial surprises.

5. Rules and Restrictions (CC&Rs)

The Covenants, Conditions, and Restrictions (CC&Rs) are a set of rules established by the HOA. They may regulate:

• Exterior modifications (e.g., paint colors, fences).
• Parking rules, including restrictions on street parking or RVs.
• Noise and pet policies.

Before moving in, ensure you're comfortable with the rules, as they can impact your lifestyle and property use.

Consider these factors to make an informed decision about living in an HOA community. Each HOA has its unique policies, so researching these aspects will help you choose a community that aligns with your lifestyle and financial goals.

Working with a Legacy 100 broker is crucial for navigating the complexities of HOA communities and ensuring you make a well-informed investment. Our experienced brokers thoroughly review HOA documents, flag potential red flags, and clarify financial and legal details that could impact your future costs and lifestyle. By having a Legacy 100 expert on your side, you’ll avoid costly surprises and feel confident that your new home fits your needs and expectations—without any hidden pitfalls. Don’t risk it; let us help protect your investment.