When purchasing a home, it is a good idea to learn about various real estate associations, such as homeowners associations (HOAs), condominium associations, and tenants in common. What they all have in common is that if you purchase a home that is connected to an association, you must abide by the rules and regulations (including fees) of that particular association.
There are some differences among the various types of associations and it is valuable for you to understand the various associations and to understand those differences as well as what is involved. Among the different associations, comparing and contrasting gives you have an understanding of what you are dealing with.
- HOAs: An HOA usually handles a community (or development). The community may have single, standing houses or semi-detached houses, condominiums, and/or townhouses. The HOA has established rules and regulations and manages the community for a particular fee. A large percentage of homes in developments are connected to a HOA. There are differences from HOA to HOA as far as the rules and regulations as well as the fee structures are concerned. It is common for the HOA fees to pay for property and building maintenance, certain neighborhood attributes, and insurance, which covers a variety of things.
- Condominium associations: A condo association is similar to an HOA. The association covers property and building maintenance, certain neighborhood attributes, and fees are either collected monthly, quarterly or annually. There are also differences from condo association to condo association and geographic location has a lot to do with that.
- Tenants in common: This is an association in which a minimum of two people co-own a property. If it is 50/50, each owner has an equal share of all parts of the property. Also, each owner has the right to borrow against or sell their share of the property independent of the other owner.
Getting solid legal advice
If you own a property, whether you are the sole owner or you are a joint owner, the chances are very good that your property is tied to an association. Sometimes, real estate issues become complicated, which is why it may be wise to consult with a knowledgeable real estate lawyer. Solid legal advice may help you to resolve your issues effectively so that the outcome is favorable.