HOA Hurdles to be Aware of When Looking at New Properties

A HOA can have a significant impact on your decision to purchase a new home in a Condominium Project or a Planned Unit Development (PUD). When you plan on moving into a new housing development or a condo, you are required to sign-off the required HOA agreement that specifies all the rules of that development. When you are purchasing a home, the HOA is something that gets a little sidelined.

Its only when you actually move into your new home and settle in comfortably that you realize, a number of rules and regulations laid out by the HOA can be very restrictive. You might find that there are a rules you might not be able to adhere to. These are 7 things you should watch out for in the HOA agreement:

  • Home Businesses- If you plan on the working from home – maybe run a daycare center or your law office, if the HOA does not permit any kind of commercial activity in your residence, you will be compelled to look for office space outside

  • Restrictions on Animals- Some homeowners associations have a restriction on the number of pets you can have in your home, as well as the kind of pets you can keep

  • Clothes Lines- This seems like a very unlikely one. If you prefer to sun-dry your clothes, you will have to ensure that the place you live in has no restrictions around having clothes lines strung in the yard.

  • Nighttime noise or Nuisance Rules- Regardless of the lifestyle you follow, if you live in a place where there are time restrictions on playing loud music, you will have to fall in line with the rules

  • Limitation on Leasing-out your Home- A number of HOA’s requires that the units on the premises be owner-occupied. If you have acquired that particular home specifically as an investment, this will pose a problem for you

  • Patio Prohibitions- Some HOA’s also prohibit you from using patios to store boxes and bikes and you might also be required to dispose of any dead plants

  • Carpeting- Hardwood floors tend to carry sounds and a number of HOA’s require that home owners carpet a certain percentage of their floors. You will have to ensure that the carpeting is in all the right places

It is up to you to decide whether the terms that have been laid out in the HOA work for you or not. But it is important that you be aware of these restrictions before you buy any property. For more information, contact ResMac Home Loans.