Know your HOA
Tuesday, July 8th, 2008Hello,
Hope everyone has had a wonderful and safe 4th of July celebrating the Birthday of the United States! We spent ours with our circle of car club friends. No, not driving our classic cars in this heat but hanging out in the pool deciding where we will go once the fall car season starts. Enjoy what ever air condition place your in and lets talk about another topic of what you should be looking at when considering an addition to your home and or garage or when purchasing a home and thinking of adding on space for parking for your passion.
The HOA (home owners association) and the Title Commitment or Title Report, the article below is from the Buyers Advisory from www.AARonline.com Each one of these documents are important for you as a homeowner to read and understand before starting a project on your home. As a Buyer, you will receive a copy of the HOA and the Title Report when making an offer to purchase a home. Make sure you are reading and understanding what you can and can not do as far as adding onto the property. Follow up with the city/town also for their rules and regulation. Better to ask a million questions before you start spend any money.
Just because the property may have a large lot or you feel there is plenty of room to add on that parking for your passion does not mean that you can. There could be restriction to consider that will determine if you can such as a wash, set backs, height restrictions, a land to building ratio, these plus may other items that may determine if you can or can not proceed. So while you are enjoying your air condition space read, research and ask questions.
Homeowner’s Association (”HOA”) Governing Documents
In addition to CC&Rs, HOA may be governed by Articles of Incorporation, Bylaws, Rules and Regulations, and often architectural control standards. The HOA is in place to own and operate portions of a planned community and attempts to preserve the value of property in the condominium or planned community. Read and understand these documents. Also, be aware that some HOA impose fees that must be paid when the property is sold, so it is important to ask if the purchase of the property will result in any fees. Condominium and planned community HOAs are also regulated by Arizona statutes; however, they are not under the jurisdiction of the Department of Real Estate. If you have questions about your rights and remedies regarding homeowners associations or community associations, read the information provided at www.azre.gov/PUBLIC_INFO/Documents/Purchasing_A_Home_Read_This.html#LINK11 or www.dfbls.az.gov/UserFiles/File/administration/HOA%20Package04012007.pdf
HOA Disclosures
If purchasing a resale home in a condominium or planned community, the seller (if fewer than 50 units in the community) or the HOA (if there are 50 or more units) must provide the buyer with a disclosure containing a variety of information, including the principal contact for the association, assessments, the money held by the association as reserves and, if the statement is being furnished by the association, a statement as to whether the records of the association reflect any alterations or improvements to the unit that violate the declaration. See www.azleg.state.az.us/ars/33/01260.htm and www.azleg.state.az.us/ars/33/01806.htm for the laws detailing these requirements.
Title Report or Title Commitment
The title report or commitment contains important information and is provided to the buyer by the title/escrow company or agent. This report or commitment lists documents that are exceptions to the title insurance (Schedule B Exceptions). Schedule B Exceptions may include encumbrances, easements, and liens against the property, some of which may affect the use of the property, such as a future addition or swimming pool. Make sure you receive and review all of the listed documents.
Questions about the title commitment and Schedule B documents may be answered by the title or escrow officer, legal counsel, or a surveyor. General information regarding title issues may be found at www.alta.org/consumer/questions.cfm or obtained from the title/escrow company employed in the transaction.
Hope this is giving you food for thought in your next experience in remodleing and or purchasing your next home. Please call if you have any questions. What are your questions, fustrations or just thoughts on all this? What would you like to hear about the the Auto Related Real Estate blog? Let me know.
Have a great day!
Denise G. Ham, REALTOR
480-213-1613 dIrect
Sonoran Lifestyle Real Estate