Homeowner’s Association Defined
A Homeowner’s Association (HOA) is a legal corporation that is formed by a real estate developer in order to market and change-homeowners-association sell homes and lots in an exclusive community. Once the homes are purchased or rented, the role of the Homeowner’s Association changes to management.
The Homeowner’s Associations is generally run by board members that live outside the community. When purchasing a property that has a Homeowners’ Association, the buyer must agree to the HOA terms prior to completing the sale.
The basic purpose of a HOA is to keep property values high and ensure the rights and responsibilities of all homeowners or renters. Homeowners Associations also enforce rules and can even issue fines for non-compliance. However, there are times when the board of a Homeowner’s Association makes poor decisions that have a negative effect on the community. HOAs across the country are experiencing changes for the better because of resident input. Read more