HOA's and you

Are you sure you want to own in an HOA?

Homeowners associations (HOAs) are private organizations that govern neighborhoods or communities, typically in subdivisions or condominium complexes. They are responsible for enforcing rules and regulations that are designed to maintain property values and ensure a high quality of life for residents.

While HOAs can offer benefits such as community amenities and maintenance services, they can also pose challenges for homebuyers and homeowners. For one, HOAs can be very strict in enforcing their rules, which can limit a homeowner's freedom to make changes to their property or even the color of their front door.

Another challenge is the potential for legal disputes. According to a study by the Foundation for Community Association Research, nearly 1 in 3 HOAs are involved in a dispute each year. These disputes can range from disagreements over rule enforcement to more serious issues such as construction defects or financial mismanagement.

One issue with HOAs is that they are not regulated by the government in the same way that other housing-related entities are, such as landlords or property managers. This means that there is no federal agency overseeing HOAs, and state laws regarding HOAs can vary widely.

Furthermore, HOAs have the power to foreclose on a homeowner's property if they fail to pay their dues or fines. In some cases, a homeowner can lose their home even if they are only a few hundred dollars behind on their HOA fees.

When considering purchasing a home that is regulated by an HOA, it's important to carefully review the rules and regulations, as well as the financial health of the organization. It may also be wise to consult with a real estate attorney who can advise you on the legal implications of HOA ownership.


To learn a bit more on Homeowners Associations check out this report by 'Last Week Tonight with John Oliver', where they explain how HOA's can be the monster under the bed you never wanted to meet. #LOLButSeriously