Review those Condo/HOA/CC&R Docs!
Love Buying a Home – Week 11
This step-by-step series will take you through the entire home-buying process — from finding a buyer’s agent to settlement day, and all the details in between. Every first-time buyer will find this information-packed series easy to follow and understand. Make sure to tune in for the next few weeks!
Want chickens? Have ideas for a specific style of fence? There are some things you need to check on first.
If you’re purchasing in an HOA you’ll want to review the HOA docs. You’ll want to make note of what the HOA fees are and how often they are due.
You’ll want to take a peek at the CC&Rs and any applicable city & county ordinances. These will all have an impact on your life living at the home.
ALL ABOUT HOAs
HOAs also known as Homeowners Associations, most people either love them or hate them. Whichever camp you’re in, you’ll want to know if the home you’re buying is in an HOA or not; and hopefully you’ve figured this out prior to making an offer.
If the home is in an HOA, you’ll want to know what the HOA fee is. Your lender will be figuring this into your approval and it, like taxes and insurance, will have an impact on whether you qualify financially.
Beyond its impact on your qualification, you’ll want to know what all the fees are covering. Do the fees cover irrigation water? Snow removal? Community grounds & maintenance? Etc.
Another important aspect are the rules of the HOA which will be found in the CC&Rs.
COVENANTS, CONDITIONS & RESTRICTIONS
Covenants, Conditions & Restrictions, commonly referred to as CC&Rs. They are a governing document for all HOAs and many subdivisions without HOAs too. The documents are recorded with the county establishing rules for the subdivision.
These are important to review because they can dictate things from the size of homes to the colors of homes. Whether or not you can have certain types of animals. The style of fence you can have. If you can park an RV outside your home etc. Some CC&Rs will be minimal, and others will have many rules. It’s up to you as the homeowner to determine whether the rules outlined in the CC&Rs are ones you can live with or not.
Many times, these CC&Rs will be linked in your title commitment policy from the Title Co. However, your agent should be able to get them sooner for your review if requested. There’s a couple more places you’ll need to dig up some information from to make sure you’ll enjoy living in a certain area: ordinances for cities & counties.
CITY & COUNTY ORDINANCES
Head over to the county & city (if applicable) websites and pull up the ordinances for the areas you are looking to live.
Within these ordinances you will find topics on planning & zoning, livestock, pet licensing etc. These often-overlooked ordinances are important to your day-to-day life living in an area and you want to ensure that your lifestyle is in line with the rules set forth.
Condo Docs
Within the Magic Valley we don’t have many condos and the ones we do don’t typically come up for sale. We are seeing more townhome & duplexes come available. If you end up buying a unit in one of those there will be a recorded document that will outline how maintenance works, roof replacements etc. That is something you will want to make sure you take a look at to avoid any surprises down the road.
Reviewing your HOA, CC&Rs, and any county & city ordinances is a critical step to ensure you don’t suffer buyer’s remorse down the road or an unexpected ticket for your dog not having a license. This can feel overwhelming, so I suggest starting with looking at the city & county ordinances that you’re looking at purchasing in first. Think about how long you plan to live in the home and any future plans you are considering. If an HOA doesn’t allow livestock and you just bought a horse, we might need to look elsewhere.
Concerned that the subdivision you love has strict CC&Rs? Email me here and we’ll set up a time to talk more about subdivisions in our area so you can understand this important aspect of your purchase before you make the big decision to invest.
We’re heading into the final weeks of my Love Buying a Home series and also for your final steps to buying a home. You’ll get the nitty-gritty in the next article, Almost There … Pre-Closing Details for Buyers. It provides a breakdown of what to expect so you’re ready for the big day.
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