What You Need to Know about Home Owner’s Associations
Homeowners associations, or HOAs, are a common feature of many residential communities. They are designed to maintain and manage common areas and amenities, and to enforce rules and regulations that promote a cohesive and desirable living environment for all residents.
As a homeowner in a community with an HOA, it is important to understand the basics of how they operate and the rights and responsibilities of both the association and the homeowners.
First, it is important to understand that the HOA is made up of homeowners in the community who pay dues to fund the association’s operations. The HOA is governed by a board of directors, who are elected by the homeowners and are responsible for making decisions about the community’s affairs.
The HOA’s rules and regulations, known as covenants, conditions, and restrictions (CC&Rs), are binding on all homeowners in the community and are enforced by the association. These CC&Rs may place certain restrictions on homeowners’ use of their property, such as limitations on the color of paint that can be used on a house or the type of plants that can be planted in a yard. It is important to be familiar with the CC&Rs before purchasing a home in a community with an HOA, as they may impact your ability to make changes to your property.
Homeowners are also expected to pay dues to the association, which are used to maintain common areas, such as parks and swimming pools, as well as to pay for other expenses, such as insurance and legal fees.
<divclass=”image-block-outer-wrapperlayout-caption-hiddendesign-layout-inlinecombination-animation-noneindividual-animation-noneindividual-text-animation-none”data-test=”image-block-inline-outer-wrapper”> <figureclass=”sqs-block-image-figureintrinsic”style=”max-width:2500px;”> <divclass=”image-block-wrapper”data-animation-role=”image”>
Dues can vary from community to community, so it is important to understand how much you will be expected to pay and how the money will be used. In North Carolina, an HOA has the right to foreclose on a property that is delinquent in HOA dues.
As a homeowner in an HOA community, you also have certain rights and responsibilities. You have the right to attend and participate in meetings of the association, to vote in elections for the board of directors, and to receive notice of proposed changes to the CC&Rs. You also have the responsibility to pay your dues on time, to comply with the CC&Rs, and to refrain from actions that may be harmful or disruptive to the community.
One of the important things for homeowners and potential home buyers to understand is that what’s in writing rules, even if it hasn’t been in practice. This article from Indy Week on an 2017 HOA challenge in Durham highlights the importance of understanding your neighborhood’s restrictive covenants. If you are a homebuyer in North Carolina, make sure that you are getting those covenants during your due diligence period (better yet – before you go under contract!)
Overall, it is important to understand the basics of how homeowners associations operate and the rights and responsibilities of both the association and the homeowners. Familiarizing yourself with the CC&Rs and being aware of the dues you are expected to pay can help you make an informed decision when purchasing a home in a community with an HOA.
I’m Chrysti!
Durham real estate agent and enthusiast for all the best the area has to offer.
Looking for something specific?
Explore by neighborhood
HOME BUYING CHECKLIST
Your Essential Guide to Navigating the Home Buying Journey
Struggling with starting your home search? Our Home Buying Checklist breaks down everything you need to know, from considering your next neighborhood to collecting your keys.