Recently I came across an article that briefly discussed the importance of reviewing Home Owner Association documents prior to closing on a home. Immediately I remembered a recent horror story that was shared with me by a client that listed their condo in Plano with me. I will try and summarize the highlights and point out the just of it in as few words as possible. During a monthly HOA meeting for a subdivision I won’t mention, the vice president and president got a little too excited over some heated issues on the agenda. Evidently there were some disagreements on allocation of funds for some planned repairs the owners were considering. By the end of the meeting the VP and P of HOA were at duking it out like two cowboys in a saloon. Long story short, the police were called out and one of them was taken away and later fired from HOA management. This is just one example of the types of conflict that can arise over misinterpretation and difference of opinions with cooperative ownership.
If you are considering purchase a condo in Dallas, make sure you review the HOA docs before making a
commitment. Be sure and review these documents before you execute the contract or your option period expires. I underlined this statement to emphasize the importance of timing. I’ve come across some articles that suggested this tip but mentioned prior to closing which could end up being to late to terminate your purchase contract if you’ve found something within the HOA docs you don’t agree with. I’ve included some items of importance that should be reviewed before proceeding with purchasing a property managed by an association. These items apply to most transactions whether you’re purchasing a Home in Highland Park, Townhome in North Dallas, Condo in Dallas Fort Worth, Highrise in Turtle Creek, or a Loft in Downtown Dallas.
Review HOA financials, pay attention to amount of reserves which is the amount of money the home owner assocation has on hand to handle potential repairs and montly maintenance issues.
Study the Rules and Regulations, noting restrictions, rules and guidelines set by the association
Ask for a copy of the forecasted HOA Annual and Monthly budget.
Read over insurance polices covered by your HOA fees. Many properties include insurance such as a blanket policy
Have a member or employee of the Home Owner Association explain the formulas used to calculate percentage of ownership and allocation of HOA fees.
Always ask if there are any special assessments in place for any major repairs in progress. Special Assessment can often be very large and run for a long time costing each individual owner thousands of dollars.
Bottom line, READ THE FINE PRINT
You must be logged in to post a comment.
