Over the years I have listed and sold many homes where there has been an HOA, a Homeowners Association. This article is specific to single family homes. HOAs are typically formed by the builder/developer to set forth the expectations for the neighborhood. I live in a neighborhood with an HOA and these are some of our restrictions:
no RVs, boats, in the driveway overnight
permission is needed for exterior projects
no signs other than for sale signs
There are provisions in place if our HOA wants to make changes, If for instance, there was an indication that many owners wanted to put up sheds, there would have to be an agreement from at least, I believe 70% of the homeowners. The HOA also has the right to place a lien on our home if we do not pay our annual dues.
Many HOAs can and will sue a homeowner that does not comply with the rules and regulations, therefore, it is VERY IMPORTANT that buyers make their offers contingent upon the review of the HOA documents ALONG with the current financial statement. Some buyers might ask why a financial statement is important to review. It's important so that you can see what the balance is in the reserve fund and how the money has been spent.
Over the past few years, our HOA has been getting bids on cleaning out the retention basin in our development. It may seem like a small task, but it actually cost about $17,000. Our HOA has been well managed, therefore they planned for this financially and were ready to pay for this improvement.
So if you are buying a home with an HOA, make sure you request and review any documents regarding the HOA and if you are a seller, please make sure you have the documents readily available for your prospective buyers.
If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate. Information is obtained from Neohrex (Northeast Ohio Real Estate Exchange) and is deemed reliable but not guaranteed and should be independently verified. Properties subject to prior sale, rental, or other status changes. All properties that are advertised as being listed or sold by Barb Szabo are in conjuntion with ReMax Trinity.