Homeowners associations were established to make and enforce rules regarding the properties in a development.  They play an essential role in maintaining the common areas, roads, amenities among other things.  

Homeowners Associations are also referred to as HOA’s. They are more common in condominiums, townhomes, and planned unit developments (PUD’s), however they can also be established in single family residence developments that will have common areas such as club houses, pools and parks.

The Homeowners Association members typically are residents of the community and elected by the residents.  The Association maintains and enforces the rules and regulations set for by association and collects the monthly dues.  Failure to follow such rules the HOA can impose fines, prohibit use of the community facilities and place a lien on your home. If you do not make the payments in most cases the HOA will place a lien on your property that could lead to a foreclosure. 

Here are 5 things to consider before purchasing a home in a homeowners association. 

  1. What does the monthly fee cover? For example it may only cover the common area and maintenance and exterior insurance or it may also cover trash services. 
  2. Are there any special assessments that are being considered to replace roofs, roads or any major improvement to the development? 
  3. Any pending or proposed due increases? 
  4. Any past or present litigation by or against the development?
  5. Request copies of the monthly minutes of meetings held by the HOA and financials for stability of the HOA. 

There are many other things to consider when purchasing a property with an HOA that could impact the sale.  For instance, in newer developments we will see 2 HOA’s, one for the complex and another for the community. We will also see litigation that will possibly prohibit financing or we may see reserves low by the HOA that will make financing challenge 

Working with us, Lyle and Grace we share our knowledge and guide you through the process of buying or selling a home with a homeowners association.  Experience matters and we are here to help you. 

Grace Caddell

Broker Associate

In taking every measure to help her clients successfully accomplish their personal real estate goals, Grace Caddell exhibits genuine care, dedication and professionalism. As a co-principal of Team Lyle and Grace, Grace together with her husband Lyle constantly orchestrate the most rewarding real estate experience possible. Known for her intimate knowledge of the Greater San Diego real estate market and valued counsel and expertise in the Acquisition and Marketing of Residential, Luxury and Investment Properties, Grace’s inspired passion and love for her clients is very present as she caringly ensures that each client receives a truly exceptional real estate experience.
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Grace excels at providing insightful guidance and marketing strategies that produce results. When working with sellers, she creates a highlighted and impactful presentation that utilize professionally produced photography and refined staging services together with a presentation in print and on numerous internet sites. Her skill in staging each listing to make it shine with the appropriate colors, appointments and décor and stand out from the competition is impressive. In working with buyers, Grace carefully listens and takes the time to educate them on current market conditions as well as evaluate and prioritize their goals so that she may find a residence and distinguished setting that meets their lifestyle requirements. As a multilingual agent, she is fluent in English and Spanish.

Grace’s clients enjoy her personal touches and appreciate her genuine, deep commitment and heartfelt care and compassion that she clearly exhibits in every interaction. It is truly her joy to ultimately fulfill their request throughout the transaction and graciously serve them. She is a connector who cherishes the rich and personal interaction of bringing people and the community together.

With Grace, it’s just as much about building the relationships with her valued clients as it is delivering on the right property