A homeowners’ association (HOA) is a subdivision organization that creates and enforces rules relating to properties within its control. Typically, when a property is purchased within an HOA, the property owner automatically becomes a member of the HOA and is often required to regularly pay fees. HOAs can regulate the use of property and can have a great impact on the property owner’s rights.
Therefore, a buyer must understand any obligations, limitations or fees when considering purchasing a property in an HOA. The rules and regulations of HOAs are often included in covenants, conditions and restrictions (CC&Rs), subdivision covenants or deed restrictions. Additionally, HOAs often can assess fees when rules are violated by those regulated by the rules. A buyer is never required to write an offer on a property with an HOA, but when they agree to purchase a property within an HOA, they agree to honor all the rules, regulations and fees associated with such ownership.