When you buy into a Common Interest Development (CID); as soon as you sign on the dotted line, you become a member of the association, there is no “opt out” clause. As a result, you are now legally bound to the associations conditions, covenants and deed restrictions. These are normally put in place for the protection and integrity of the neighborhood with everyone expected to participate in the upkeep and appearance of their property according to the rules. If you find them too restrictive, you can choose to buy elsewhere.

The Homeowners Association takes care of much of the basic exterior maintenance. In a designated neighborhood, gated community or development, they also help maintain properties, driveways, entryways, snow and leaf removal. Find out if your HOA level of management. Sometimes more common than micro managing is undermanagement.

What payment cycle does your HOA use? Fees normally run between $200 and $400 a month. Higher fees usually mean more amenities available. HOA fees can increase if a major expenses arise, like a new roof, road improvements and the like. They may include city services like garbage removal, water and sewage. All residents share equally in the upkeep of the common areas, as well as insurance to cover the exterior of the property.

HOAs are legal and binding, so you want to find out what rights you’re signing away before committing your signature to ink. Some buyers find them too restrictive from dictating the color of your door, if and where you can have a satellite dish, fences or fence heights, to window coverings. Some eco-friendly villages may restrict the type of fertilizers and pesticides that can be used and the type of landscaping allowed.

When property values go up, insurance goes up, and HOA fees go up. Ideally, the association should allocate a certain percentage of incoming funds to the maintenance of special projects, or invite the entire community to vote about special assessments if reserves fail to cover costs. However, it is not unheard of for an HOA to contract work, like upgrading neighborhood streets, and then expect residents to foot the bill by raising HOA fees. Usually, this happens if the reserves cannot cover the expense. You can check to see if your HOA is in good standing by starting here. Additionally, if you think you are being wronged, you can find out if your HOA complies with the federal and state laws of Ohio here.

Each HOA is different so be sure to find out what the fees cover.

If you have more questions, stop by and OhioCapitalMortgage.com.