According to Colorado law, during the negotiation of the purchase of a home, the seller is required to disclose whether the home is in a HOA. They should provide you with HOA documents including a copy of the bylaws, covenants, and most recent Annual Owner’s Meeting, and most recent financial statements, if available, for the six month period immediately preceding the date of the contract to buy. It is very important that the home buyer read these carefully, especially the financial statements. Some HOA’s may not have managed their budget wisely and have a shortage of funds for needed upkeep or repairs or may have special assessment or fees that have been approved, but not yet applied. Some Associations strictly forbid any cars to be parked on the street, what color you paint your home, or if you are allowed to have a privacy fence. While these restrictions may be exactly the type of rules that keep a neighborhood beautiful and property value more secure, it may not be the right fit for some people. Home buyers often underestimate the importance of carefully reading the Bylaws, Covenants, and financial statements during the due diligence stage of the home buying process.
HOA’s also may offer benefits such as amenities and shared areas. Some may
include a pool and clubhouse, community park, tennis courts, common area
gardens and maintenance, snow removal, water and trash, or additional lighting
around the neighborhood. These features
can help keep a community attractive and stabilize property values. For additional information on HOA’s in Colorado Springs, click here. If you would like help finding a home, or have questions about how HOA’s work, I would be happy to help you in any way possible. You can email me, or give me a call #719-357-1023
