When it comes to selling homes under an HOA, you may find clients who appreciate an HOA and those who do not want to be under the rules of the HOA. When it comes to homeowners’ associations, not every person understands the legal power.
According to U.S. News, the HOA agreement is a legally binding contract.
Understanding the legality of HOAs
When created, an HOA has bylaws as a foundation for the community. Homeowners have control over the HOA, often through elected volunteers. The board works on the bylaws, can change the bylaws\, set covenants and establish a budget. Homes under an HOA have ties to the association. When a homeowner buys the property, they agree to comply with the rules. Homeowners have an opportunity to review the contract and can back out of an agreement to buy a home if they have a conflict with the rules and regulations.
Learning the rules and regulations
Before a person purchases a house, it is critical to inform him or her of the HOA’s rules. One way to ensure you understand the HOA’s regulations is to read the minutes of previous board meetings. Most board meetings are open to all members and occasionally, an HOA may have a public forum meeting. Homeowners need to know that they can have an opinion on the rules. Most HOAs feel more restrictive when a homeowner does not have input.
Most homeowners feel satisfied with an HOA. About 71% of homeowners believe the rules add value to the property. Real estate agents can teach their clients that involvement with the HOA can make a living under the rules easier. If someone has a board or committee position, he or she can ensure all voices in the community have an impact.