Homeowners Association (HOA)

In depth

HOAs are usually nonprofit corporations created by covenants, conditions, and restrictions (CC&Rs) recorded against the development. Members are owners within the community. HOAs collect monthly or annual dues, enforce architectural standards, and maintain common areas. Misconception: HOAs are not optional once you buy in; membership is automatic and dues are mandatory. Practically, FSBO sellers must disclose HOA dues, special assessments, and any pending litigation. HOA liens for unpaid dues attach to the property. In seller-financed transactions, sellers should ensure dues are current at closing and structure ongoing collections to prevent buyer delinquency. Buyers should obtain and review the CC&Rs, bylaws, and recent meeting minutes before closing. HOA fees typically increase over time.