Over 40 million Americans are governed by the rules of a homeowners association. Not only can they restrict your home-related activities, they can impose special assessments and raise monthly fees.
Therefore, you should read the relevant documents before you buy. Walk around the neighborhood where you’ll be living and ask the current owners if they’re satisfied with the homeowners association.
In addition, examine the association’s financial statements to see if there have been special assessments. Find out if the board has spent money on street repairs and other facilities so you won’t walk into an unexpected call for catch-up maintenance.
As an extra precaution, go to the local courthouse to see how often the association has sued residents. If there has been frequent litigation, you may be moving into trouble.
However, don’t rule out a home purchase just because a homeowners association is in place. An active group may discourage residents from behavior that disturbs neighbors and thus enhance property values.