How to Avoid HOA Assessments

More often than not in Summit County a property will be part of a Home Owners Association.  In addition to dues that are typically paid on a monthly basis, (sometimes quarterly or even annually) an HOA may issue special assessments to all owners in order to cover costs that the HOA cannot afford.  Special assessments are typically for major maintenance projects or for unforeseen and expensive damage that requires repair.

When purchasing a property that is part of an HOA, it is imperative that a buyer review all of the HOA documents including current and past financial reports.  If the HOA has very limited funds in there operating account and limited or no funds in their reserve account this is a huge red flag.  An HOA with no money in reserve is unlikely to have any option but to issue special assessments, if and when unforeseen expenses occur.

It is also important to review past HOA board meeting minutes.  If a HOA has a long history of issuing special assessments, you can expect the habit to continue into the future.  However, if the HOA has a healthy reserve, a well budgeted operating account and no history of special assessments it is very unlikely that there will be special assessments in the near future.

Lastly, it is crucial that you understand your rights as a buyer.  If for any reason you are not satisfied with the condition of the HOA, you have the right to object (prior to the Association Documents Objection Deadline) and get out of the purchase contract without being in default.

As always, if you have questions about this or anything else pertaining to Summit County Real Estate, you can contact me anytime at the information below.

All the best,

Tyler MacGuire  e-PRO®, SFR

Broker Associate

Omni Real Estate Company

Office: 970-468-2740

Mobile: 970-409-7779    

Web: www.tylermacguire.com

       

“Your Guide to Summit County Real Estate”