The Importance of Reading Your HOA Documents Before Closing on a Home
Many new homeowners don’t read through the CC&Rs when closing on a home and it gets lost inside the huge stack of paperwork. The HOA governing documents contain several sections of information that pertain to your specific community. They include these sections:
● Declaration. This is the CC&Rs, also known as covenants, conditions, and restrictions for the community. It also explains the owner’s obligations to the HOA. These include paying assessments. It will also include some dos and don’ts of the HOA.
● Bylaws. These are guidelines of how the association should operate. It will list out information such as board members’ term length and other governing guidelines for the HOA. Bylines set forth definitions of offices and committees involved with the board.
● Amendments. These are any formal changes that have been made to either the Bylaws or the Declaration.
● Community Rules and Policies. These are additional written rules and policies that are separate from the Declaration and Bylaws. These are specific rules regarding landscaping, parking, and pool rules. These rules are necessary when the Declaration isn’t specific enough. HOAs need specific collection, fine, and enforcement policies written and recorded. These policies help inform residents about assessment payments, fines for maintenance upkeep, and other declaration infractions.
● Budget Information. It’s important that you understand the financial situation of your HOA.
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