A Homeowners Association (HOA) is a non-profit entity incorporated by the developer when a community is being built. The purpose and function of an HOA is defined by its Covenants, Conditions and Restrictions (CC&Rs), which are in public record and run with the property. When you buy a home that is part of an HOA, you automatically become a member of the HOA and are bound by the CC&Rs (read them!). You will also owe dues to your HOA.

HOAs vary widely in function and dues. Some have dues of $100 per year and just mow the grass at the entrance to a subdivision. Dues for a high-rise condo with 24-hour concierge service can be many hundreds of dollars a month. Dues for condos generally include water, sewer, garbage, exterior insurance and exterior maintenance. Some even include cable TV, internet and hot water or heat.

If your property is part of an HOA, the HOA must meet loan guidelines. We will get copies of the CC&Rs, financials and any other necessary information as soon after your offer is accepted and let you know if we have any concerns.