Navigating HOA rules: What buyers and sellers need to know

When buying or selling a property in a community governed by a homeowners association (HOA), understanding the rules, fees, and expectations is essential. 

HOAs play a significant role in maintaining property values and creating a sense of order within communities, but they also come with specific obligations for homeowners. 

Whether you're buying your first home or preparing to sell, knowing how to navigate HOA rules can save you from unexpected surprises.

What is an HOA?

A homeowners association, or HOA, is an organization established to manage and maintain a residential community. HOAs are typically found in planned neighborhoods, condominiums, and townhome communities. They’re governed by a board of directors elected by homeowners in the community. The HOA board enforces community rules and oversees shared responsibilities to ensure a cohesive living environment.

Overview of HOA Fees and Services

One of the most notable aspects of living in an HOA-governed community is the fees. Homeowners are required to pay regular dues—monthly, quarterly, or annually—that fund the association's operations and community services.

Examples of benefits HOA fees can cover

• Maintenance: Landscaping, snow removal, and trash collection.
• Amenities: Pools, clubhouses, gyms, and playgrounds.
• Security: Gated access, security patrols, or surveillance systems.
• Utilities: In some cases, shared utilities like water or electricity in common areas.

In addition to regular dues, homeowners may occasionally face special assessments—extra fees to cover significant expenses like roof replacements or large-scale repairs. These assessments are typically voted on by the HOA board or the community.

Examples of Common HOA Rules

HOAs operate based on a set of governing documents, including Covenants, Conditions, and Restrictions (CC&Rs), bylaws, and rules and regulations. These documents outline what homeowners can and cannot do with their properties.

HOAs rules are intended to create a cohesive and well-maintained community. While these rules vary from one HOA to another, here are some common types:

1. Exterior Modificationssome text
   • Restrictions on paint colors, roofing materials, and fencing styles.
   • Requirements to seek approval before making changes to a home's exterior.
2. Parking Policiessome text
   • Limits on street parking or where certain vehicles (e.g., RVs, boats) can be parked.
   • Designated guest parking areas and rules for their use.
3. Landscaping and Yard Maintenancesome text
   • Guidelines for lawn care, tree trimming, and garden aesthetics.
   • Prohibitions on certain types of plants or the height of hedges.
4. Noise and Behavior Regulationssome text
   • Quiet hours to reduce noise disruptions in the community.
   • Restrictions on the use of loud equipment like leaf blowers or power tools.
5. Pet Policiessome text
   • Limits on the number, size, or breed of pets allowed.
   • Rules about leash use and waste cleanup.
6. Short-Term Rentals and Sublettingsome text
   • Restrictions on renting properties through platforms like Airbnb.
   • Minimum lease terms for tenants.

Navigating HOA Rules for Buyers

When purchasing a home in an HOA community, reviewing the association’s rules and financial health is critical. Many buyers overlook this step, only to discover restrictions or challenges after closing.

1. Review HOA Documents Thoroughly
   Request the HOA’s governing documents and pay close attention to the CC&Rs, which detail restrictions on property use. For instance, some HOAs limit the types of pets you can have, prohibit short-term rentals, or restrict exterior modifications like painting your house a certain color.
2. Understand Financial Stability
   Check the HOA’s reserve fund, which is used for major repairs and emergencies. An underfunded reserve may indicate higher chances of special assessments in the future.
3. Clarify Restrictions and Rules
   Confirm the HOA’s policies on issues that matter to you, such as parking, renting, or landscaping. Knowing these rules in advance can help you decide if the community aligns with your lifestyle.

Navigating HOA Rules for Sellers

Sellers in HOA communities have their own set of responsibilities. Many states require sellers to disclose HOA membership to prospective buyers, along with providing specific HOA documents.

1. Gather Required Documents
   Make sure you have the CC&Rs, bylaws, recent meeting minutes, and financial statements ready to share with potential buyers in case they inquire. 
2. Resolve Any Outstanding Violations
   Before listing your property, check with the HOA to ensure you’re not in violation of any rules, such as unapproved exterior changes or unpaid dues. Resolving these issues beforehand will prevent complications during the sale process.
3. Communicate with the HOA
   Inform the HOA of your intent to sell and clarify their requirements for transferring ownership. Some HOAs charge transfer fees or require approval of new buyers.

Common Challenges and Legal Considerations

Living in an HOA community isn’t always smooth sailing. Disputes can arise over rule enforcement, fee increases, or disagreements with the HOA board.

For example, a homeowner may face fines for violating a landscaping rule they were unaware of, or a buyer might discover after closing that a special assessment is imminent.

Final Thoughts

Buying or selling a home in an HOA-governed community requires an extra layer of due diligence and attention to the association’s rules, fees, and financial health. Buyers should thoroughly review all HOA documents and clarify any questions before committing, while sellers must ensure transparency and compliance throughout the transaction.

By understanding the ins and outs of HOA rules, you can avoid surprises and make more informed decisions.