HOAs can have a great legal impact on the property and the property owner’s rights. What type of fence can be built, how tall can that fence be, what color the house can be painted, what kind of landscaping can the property have are just some of the many different ways a property can be regulated by an HOA. Therefore, a buyer must take great care to understand any obligations, limitations, fees or the like when considering the purchase of a property in an HOA. The rules and regulations of HOAs are often included in a document referred to as “covenants, conditions and restrictions,” sometimes called CC&Rs, or subdivision covenants or deed restrictions.
The Wisconsin REALTORS® Association supports action by the state legislature in 2022 creating a simple, straightforward statutory structure for HOAs that allow those living in, or purchasing properties within, an HOA, to understand their contractual obligations as well as learn about the HOA relating to the property before purchasing.