#HOA #Suburbia #buyertip
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So, you move into a neighborhood with an HOA, then something happens…now you pay the HOA.
Thoughts
1. Do people not realize that when you move into a subdivision with an HOA, you are subject to any assessments that are deemed necessary?
2. There are 72 lots in this development. We don’t know how many lots are impacted by the drainage issue. It’s entirely possible that more than a third of the homes didn’t know there was even an issue when they bought their home.
3. One of the ways to mitigate risk when purchasing a home is to have a home inspection. These inspections only focus on the home, however. They would not be looking for retention pond issues unless the house that was being purchased was next to the retention pond. This indicates that there is a “gap” in the purchase process.
4. Another gap is going to be with a seller’s disclosure. It’s highly unlikely a homeowner is an expert in retention ponds. A seller could reasonably report on something as simple as property erosion in the back yard, and as long as they hadn’t been informed by the HOA beforehand, they would likely have no idea how serious of an issue this could be.
5. Protesting the HOA? According to the article, some members of the community protested, with the issue being they felt they were under informed as to the severity of the issue. They felt that the board was keeping secrets. In this, I could understand a protest. I cannot understand a protest about the fees associated with the possible repair. You moved into an HOA and you agree to their rules when you move there.
6. The assessment to the HOA is to pay for the repairs to the drainage ditch, but the lawyer for the HOA says that if they win their suit against the developer, the fees might be reimbursed. My word of caution is that anytime an HOA has to file legal action, there is a possibility they will lose, and the lawyers fees are going to come out of your pocket. Every individual in an HOA must make the decision pursuing legal action and know about the possible downsides.
7. I’m not anti HOA. I just want you to know what you might be getting into when you are a part of one. It’s never as simple as someone painting a fence or home the wrong color, or too many cars in the driveway. You need to know this BEFORE you move into the HOA.
Sources:
https://mynbc15.com/news/local/mobile-hoa-board-responds-to-protest-over-hefty-due-increase
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