29 Nov Homeowner Associations (HOA’s) – Reason for HOA
What are some restrictions you find in Homeowner Associations (HOA’s)?
What is the reason for a HOA?
We find Homeowner Associations in communities with common areas. An example is townhomes where the HOA controls, maintains and owns all the outside area. Or a condo building where the homeowner is only responsible to maintain the interior walls of their unit. Or a single-family development where there might be trails, signage monuments, and a community center.
What do HOA’s do?
The benefit of Homeowner’s Associations is they maintain and budget for areas and functions of the community owners. In many cases like lawn care and snow removal they can provide services at a volume discount.
What is included in a HOA?
A Homeowners Association has Rules and Regulations. These give a clear set of rules for the residents of the community or condo building. They spell out items like noise, parking rules and pet restrictions. In addition, they cover rental requirements and options. Also, the rules and regulations cover the use of common areas and facilities. Lastly, there is no recording of Rules and Regulations. So, they can be easily changed by the owners.
What are bylaws and covenants
While bylaws are usually not recorded with the State of Minnesota. But the Covenants are. Bylaws are mutually agreed upon governing rules for the HOA. They pertain to the operations of the HOA. While Covenants lay out how to enforce the rules for the HOA.
Lastly, Homeowners Associations also handles finances and budget. These can include outside maintenance, building and ground improvements and daily care. You as a community vote on these budgets each year.
When you buy a home, townhome, or condo with an HOA you have 10 days to examine these documents. If for any reason you don’t like what you see you can cancel the purchase agreement. You can your earnest money returned in full.
Please contact The Anderson Team with any questions. We are here to help educate you through all aspects of a real estate transaction!