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When searching for a home in the North Dallas suburbs, you will probably select a property in a community with a Homeowner’s Association (HOA). Before you buy, knowing how an HOA works and what it means for you is essential.
Community HOAs keep your community looking good.
“In a nutshell, a community HOA helps ensure that your community looks its best and functions smoothly. The number of Americans living in homes with HOAs is on the rise, growing from a mere 1% in 1970 to 25% today, according to the Foundation for Community Association Research.” – recent article in Realtor.com
A board nominated by the neighborhood governs the community HOA. It has been designed to ensure that residents have a support structure to maintain the community’s value while abiding by Common Restrictive Covenants (CC&R).
“Simply put, CC&Rs are just the rules you’ll have to follow if you live in that community. Restrictive covenants are established by HOAs to maintain the attractiveness and value of the property. This is unlike zoning regulations, which are government-imposed requirements on how land can be used.”
Each community HOA is slightly different, usually requiring homeowners to pay monthly or quarterly fees. These fees can vary based on the property size, the number of residents, amenities, etc. Additional fees may be charged to homeowners if the reserve fund for the HOA cannot cover a major or unexpected cost, like severe storm damage.
Yes, Fees for Community HOAs are Usually Mandatory
The fees also cover maintaining common areas such as swimming pools, tennis courts, elevators and regular wear and tear.
Although an HOA is an added cost to the homeowner, it can be a significant benefit in maintaining the value of your neighborhood and your property.
The same article continues to say,
“After your offer to buy a home is accepted, you are legally entitled to receive and review the community’s CC&Rs over a certain number of days (typically between three and 10)…If you spot anything in the restrictive covenants you absolutely can’t live with, you can bring it up with the HOA board or just back out of your contract completely (and keep your deposit).”
Most lenders will factor your community HOA fees into your loan package, ensuring the loan amount is appropriate for your financial situation.
There are some great benefits to having an HOA oversee your neighborhood. When considering a property governed by a HOA, it’s important to understand the associated fees, rules, and regulations.
When contracting in Texas, sellers must notify the buyer of a Mandatory HOA.
Want to know more about Community HOAs in Texas?
When looking at a potential property to buy, let’s get together so you have a professional who can help you understand the neighborhood’s HOA structure and fees. This way, you’ll feel confident and fully informed when buying a home.
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