We’ve already gone over a few things you need to understand when moving into an HOA neighborhood before, but that article dealt more with the financial aspects of moving in. For this HOA realty post, we will be dealing more with the social and rule aspect that many oftentimes forget when purchasing a new home. Although we all have pretty good idea of what HOAs can do, many out there believe the rules don’t apply to them, or else have a completely unrealistic idea of how the HOA agreement process works; with that in mind, here are a few things you need to expect when moving into an HOA property.

It Doesn’t Matter if you Sign an Agreement or Not

Homeowners who are so anti-HOA that they spend all their time looking for a neighborhood that isn’t HOA regulated oftentimes get exceedingly excited when they find an HOA neighborhood that doesn’t force them to sign an agreement form. In their mind, this means that they are not subject to the rules that everyone else is. After all, they didn’t sign any release forms, so the HOA has no authority. Right? Well, unfortunately this is more of an urban legend than anything, and if you believe that this is the case then you are in for a rude awakening. Because HOA CC&Rs “run with the land”, in Arizona and Texas at least, HOAs are not legally required to make you sign an agreement form so they may enforce the rules upon you. You have to follow those rules no matter what, even if you were unaware that an HOA existed in the first place.

Don’t get us wrong; in many cases, when you move into an HOA neighborhood, the realtor who draws up the contract for your purchase will include an “HOA agreement” addendum for you to sign.  But, these addendums almost never contain the actual rules, and they are certainly not a requirement—even if you don’t sign it, or if it’s not included, your home is still subject to the rules of the neighborhood. As such, if you find out your neighborhood is HOA regulated—ask your realtor, and other homeowners if you must—and if your CC&Rs run with the land, like they almost always do, then you will be stuck following the rules, just like everyone else in the neighborhood.

The Association Doesn’t Have to Give you a Copy of the Rules (CC&Rs)

In a continuation of the above tip, just like you don’t have to sign in order to be subject to the rules, the association you join also doesn’t legally have to provide you a copy of the CC&Rs when purchasing your home. You can ask them for it, and they might give you it; however, oftentimes they don’t have a record for you on hand, and even if they do, they don’t necessarily have to supply it (though this isn’t normally a problem). Simply put, when you’re in the process of buying your home, there is a very real chance you won’t find out the rules of the neighborhood right away, or even until you break one of them. It’s harsh, but it can be the reality of many situations.

Now, before you get up in arms about this seemingly anti-American rule, there actually is good reason for it, and you don’t have to be caught completely unawares when purchasing a home in an HOA neighborhood; you just have to do a little extra legwork if you want to be educated. You see, CC&Rs, bylaws, and other articles of incorporation are public record and legal documents. That means if you want to know what rules you are going to have to follow when joining the neighborhood, and if there’s a possibility that the rules may be a deal breaker down the line, it’s very easy to find a copy of your prospective neighborhood’s CC&Rs online from your state department. Just visit your state’s recorder (here’s Arizona’s, as an example) office site, do a simple document search by filling out the required information, and you’re on your way to finding everything you need to know about the HOA you’re planning on moving into and more!

Stay Informed to Improve your Investment

If you are uncomfortable moving into an HOA neighborhood but are hopeful for loop holes that you can use once you’re finally moved in, you may want to reconsider buying your home. Though there are many ways you can influence in HOA, by getting involved in your community, becoming a board member, etc., there aren’t really any ways around following the rules of the land in your HOA. Thus, you need to do as much research as you can on the founding documents of the prospective neighborhood so you can know precisely what you are getting yourself into. If you’re not happy, and you can see yourself causing a ruckus because of a rule that you don’t agree with, then move on; it probably won’t be getting any better.

For more information concerning HOA management and moving into an HOA neighborhood, check out our board line training page or contact us for more information! Until next time!