If you’re a first-time homebuyer, you may be unfamiliar with homeowner associations – except for examples publicized in the media. While there can be some contentious relationships between homeowners and their respective associations, you can avoid headaches if you do your homework.
First, it’s important to understand that not all housing developments have homeowner associations. They are usually found in condominiums and planned communities. As future developments form in central Ohio, it’s likely that more homeowner associations will be created.
Joining a homeowner association is easy – you simply have to buy a home that is located within the association’s boundaries, and you’re an instant member. You are also instantly obligated to follow all the rules of the association, which may regulate everything from the type of fencing you can install, to the color of your garage or front door, to the kind of patio you may build. As a rule of thumb, you shouldn’t make any exterior modifications or cosmetic changes to your home or yard without checking the restrictions.
Homeowners can run afoul of their associations when making assumptions about what is permitted. For example, if you install an above-ground pool, and it isn’t permitted by your association, the association may fine you for the infraction on a daily basis until the offending pool is removed.
Please keep in mind that the objective of these associations is to preserve property values and ensure upkeep of common areas. As municipal budgets tighten, homeowner associations have taken a larger role in providing services within planned communities. This can include snow removal, park maintenance, private road paving and so on. In return, homeowner associations charge dues to their members to cover these costs. The amount of the dues may change according to operating expenses.
Homeowner association dues are non-negotiable; you cannot simply refuse to pay them. If you refuse, the association may place a lien on your property and initiate foreclosure. To avoid this risk, your mortgage company may treat association dues just as they would property taxes. The dues would be included in your mortgage payment, and the bank would pay the association directly.
Homeowner associations in Ohio and their governing boards are regulated under the Ohio Planned Community Law and the Condominium Property Law. When buying a Columbus home that rests within a homeowner association, you should carefully review all covenants, restrictions and by-laws that apply to your specific association. These may be posted online or available in hardcopy. If there is a special area of concern, voice your questions right away, and use the appropriate contingencies in your purchase offer. We will help you!
As your Exclusive Buyer’s Broker, we serve your best interests at all times. Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.
Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner.
Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!
Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax
