HOA PlaygroundsSome homes in Durham and Chapel Hill are in Communities that have Home Owner Associations, and those dues could be charged on a monthly, annual or quarterly basis – depending on the Association and the Amenities that Community has.

Makes sense – especially if you are moving to an area that has a playground, a large entryway or Swimming Pool. Townhouse Communities and Condos generally have Association costs that cover part or all of the exterior maintenance of your home or landscaping around your property. But, there’s more to Home Owner’s Associations than just paying dues for maintenance.

Dues generally pay for the association insurance policies, landscaping services by a professional landscaper, management of the association by a professional management company, enforcement of the rules, property and income taxes, reserve funding for future repairs and maintenance, watering of association owned common areas, sprinkler repairs and maintenance, lighting of common area elements and signs, flowers, replacing and/or updating landscaping, removing graffiti, maintaining the entrance signs (painting, cleaning, etc.), neighborhood social events, newsletters, etc. In most cases, the Seller is responsible for any assessments due at closing, and the Buyer will be asked to pay at least 2 months into their Prepaid Escrow Account at closing.

I’m certainly not an attorney, and it’s important to remember that regulations governing Homeowner Associations differ from state to state. So I am going to be talking in practical, general terms on how this can affect you, the home buyer.

HOAs are Created by Covenants

Covenants, according to the American Bar Association are: private restrictions designed to maintain quality control over a neighborhood… Covenants typically restrict such things as lot size, square footage, and architectural design. They also may prohibit satellite dishes, boats and motor homes, certain types of fences, and unsightly activities such as auto repair.

Many New Subdivisions or Developments Have Them
Chances are, if you are looking at a subdivision property, especially a newer one, there are covenants. Now, the nature of and the ground that these covenants cover can vary greatly. Covenants are filed with the Clerk of Court and are a matter of public record.

Covenants are Not Optional
Covenant appurtenant, or covenant that runs with the land, essentially means when you buy into the house or property, you agree to the covenants – they are one in the same, a package deal. Because HOAs are created within and given authority via these covenants, you have agreed to abide by that as well.

HOA’s Can Be Wonderful Protectors of Property Value
The HOA Covenant’s can keep a neighborhood from having really high uncut grass, junked out cars and pink flamingos. They can also restrict what kind of Real Estate Sign you can have in your yard, Flagpoles, Satellite Dishes, and frosty the snowman circa 1972 mailboxes. You may be purchasing a Home – but that HOUSE is an investment. When you go to sell it, those houses that reside in well-kept, attractive, amenity rich neighborhoods will have the buyers smiling at “hello.”

Once The New Neighborhood Is Complete
With new construction, the HOA is generally maintained by the Developer through a management company. Once the neighborhood is complete, the Covenants will dictate how many homeowners should be officer’s of the HOA. Being involved in your HOA is a great way to get to know your neighbors… and you can help keep the budget inline – which will keep everyone’s cost down!

If you are looking for homes for sale in Durham, Chapel Hill or Cary and have questions about Homeowner Associations, please call My NCHomes / Larry Tollen at 919 659 5173 or send us a message online.

Posted by Larry Tollen on
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