Don't Wait Until Closing to Understand the HOA

A beautiful house can check every box — until a buyer discovers that the neighborhood rules don't work for how they actually plan to use the property.

This comes up more often than people realize.

Boats. RVs. Fences. Sheds. Rentals. Parking. Exterior paint. Landscaping.

Before buying a home in an HOA community, you should understand both what the HOA costs and what it controls.

North Carolina's Planned Community Act allows qualifying associations to adopt rules, establish budgets and reserves, collect assessments and maintain common elements, subject to the community's governing documents and applicable law.

1. How Much Are the HOA Dues?

Start with the obvious question.

But don't stop there.

Ask:

• monthly or annual amount
• what the dues cover
• when they were last increased
• whether increases are anticipated
• whether there are separate amenity fees

A $75 HOA and a $250 HOA may provide completely different services.

2. Are There Special Assessments?

A special assessment can create an unexpected expense after closing.

Ask whether there are any approved or discussed assessments for roads, amenities, roofs, pools, landscaping or other community expenses.

3. Can I Park My Boat or RV at Home?

This is exactly the type of question that should be answered before you purchase.

Restrictions can address:

• driveway storage
• street parking
• commercial vehicles
• trailers
• boats
• recreational vehicles

If something is important to you, don't rely on what another house in the neighborhood appears to be doing.

Verify the actual rule.

4. What Exterior Changes Require Approval?

Buyers should understand the architectural process if they plan to add:

• fencing
• sheds
• pools
• patios
• exterior lighting
• landscaping
• paint changes
• solar panels
• additions

Some communities have more detailed architectural standards than others.

5. Are There Rental Restrictions?

If you might eventually use the property as an investment, this matters immediately.

Ask whether there are:

• rental caps
• minimum lease periods
• short-term rental restrictions
• waiting periods
• tenant-registration requirements

6. What Are the HOA's Finances Like?

The association's responsibilities may include maintaining common areas and funding community expenses. North Carolina law addresses association budgets, assessments and financial records, but buyers should still review the documents relevant to the specific community.

The Bottom Line

An HOA isn't automatically good or bad.

It's simply part of the property you're purchasing.

The key is knowing the rules before those rules become your rules.

If you're considering a home in Raleigh, Wake Forest or the surrounding Triangle and want help researching the property and community, contact Sean McFarlane Realty Group at 704-661-4981.

This article is general real estate information and is not legal advice.