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Old Today, 09:47 AM
 
9,416 posts, read 7,397,967 times
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I know it's pretty standard that most sale offers are pending inspection. How common is it for an offer to be pending inspection AND review of HOA Covenants, Conditions & Restrictions (CC&Rs)?

We hear so many horror stories involving HOAs. I already have plans to build a solarium on the backyard patio and install an eight foot fence when I buy my new house. These are musts for me. I just need to know that the HOA won't give me trouble later.


Any thoughts? Do buyers ask to review the CC&Rs?

Last edited by charlygal; Today at 09:56 AM..
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Old Today, 09:49 AM
 
Location: North Beach, MD on the Chesapeake
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It's a requirement in Maryland and a reason for no fault offer cancellation if the buyer finds something he doesn't like in the documents.
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Old Today, 09:56 AM
 
Location: Brentwood, Tennessee
39,501 posts, read 38,106,476 times
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Yes, it's common here. You are legally bound by them when you move in there, so you certainly should read them before signing a contract.
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Old Today, 10:09 AM
 
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Excellent codicil in your contract. I only wish that contract was subject to the HOA bylaws, etc before moving into the Galena Territory in Galena, Illinois. What a cluster---- living here has been with the ignorant BOD and un-fettered spending. Would never have purchased here and because of these HOA rules and regs, it makes selling your home almost impossible. There is a strong possibility, you will not be able to do what you wish with your new home. Good luck.
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Old Today, 10:24 AM
 
Location: NJ
301 posts, read 270,356 times
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I don’t believe it’s common in NJ, and my buyer didn’t do it. But it’s a very wise idea.

The only concern I have is that it’s the application of the CC&Rs (ie. how well they are followed in practice) rather than exactly what they say. In my case, we had very effective CC&Rs, but they weren’t followed. And the residents didn’t care, so they were meaningless.

I would also add a contingency for review of the annual accounting and the reserve study.
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Old Today, 10:28 AM
 
Location: North Beach, MD on the Chesapeake
32,221 posts, read 39,480,912 times
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Maryland's law for reference:

https://www.brsglaw.com/Articles/Mar...nium-Act.shtml
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Old Today, 10:29 AM
 
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I agree, excellent idea. I have always been a vocal observer that HOA variables are VERY important in a home buying decision. I am less concerned with the actual restrictions themselves as most are generally the same: paint your house from approved palette, no cars on blocks on lawn, no swimming at Association pool after 10pm, etc.

What concerns me far more is the financial condition of the HOA. Are the assessments such that there is sufficient funding to replace aging assets in a timely manner. That bridge has a 30 year lifespan. It is half over. Does the bridge replacement fund have half the amount needed to fund that when the time comes, including room for cost inflation over time, or will there be a whopping special assessment for homeowners on the horizon? Same with the funding for all the capital assets such as gatehouses, clubhouses, parks, pools, roads, etc.

THAT is what really matters to me.
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Old Today, 10:40 AM
 
Location: Columbia SC
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Quote:
Originally Posted by ElDiabloJoe View Post
I agree, excellent idea. I have always been a vocal observer that HOA variables are VERY important in a home buying decision. I am less concerned with the actual restrictions themselves as most are generally the same: paint your house from approved palette, no cars on blocks on lawn, no swimming at Association pool after 10pm, etc.

What concerns me far more is the financial condition of the HOA. Are the assessments such that there is sufficient funding to replace aging assets in a timely manner. That bridge has a 30 year lifespan. It is half over. Does the bridge replacement fund have half the amount needed to fund that when the time comes, including room for cost inflation over time, or will there be a whopping special assessment for homeowners on the horizon? Same with the funding for all the capital assets such as gatehouses, clubhouses, parks, pools, roads, etc.

THAT is what really matters to me.
This is what Reserves are for and the proper Reserves is critical especially when there are a lot of amenities.
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Old Today, 10:56 AM
 
Location: Central Texas
19,936 posts, read 36,531,846 times
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Review of the HOA docs (CCRs, financials, etc.) is already contained in the contract here (and also has its own amendment already ready to go) and you get a certain (negotiated) number of days after receiving them to review and to terminate the contract and still get your earnest money back if you do not agree with them.



I personally, as an agent, try to find them online (many have them there now) if a client indicates serious interest in a house in an HOA neighborhood and encourage them strongly to read them BEFORE we write the offer. Sometimes it's like leading a horse to water and making it drink, but at least the option is there.
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Old Today, 11:14 AM
 
Location: planet earth
3,158 posts, read 1,103,529 times
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It's normal - part of the due diligence package.

If you are planning on building an eight foot fence and installing a solarium, you'd better read them, because those particular things might be prohibited.
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