Advice to buyers about HOAs

By Tammy Joyner

The Atlanta Journal-Constitution

Georgia is home to an estimated 25,000 associations, most of which are in metro Atlanta.

At the end of the day, Georgia law regarding homeownership comes down to this: Buyer beware.

“Buyers can’t assume everything is going to be fine,” said Seth Weissman, a partner at the Atlanta law firm of Weissman Nowack Curry & Wilco. Here are some suggestions for buying a home where there is a homeowner or condo association.

Before buying into 
a homeowner 
or condo association:

Read all legal documents (declarations and bylaws), so you know what you’re entering into contractually.

Review the HOA or condo association budget.

Try to understand thoroughly what your obligation will be. Ask how much money the association has in reserve. If the answer is zero, that’s a red flag. Ask what percentage of owners aren’t paying. (The seller can normally get this information for you.)

Be aware of the differences between homeowner associations and condo associations. The moment you’re late on your condo fees, a lien can be automatically attached to your unit. Homeowner associations generally must file liens with the court. You can also lose the privilege of paying your fees in installments if you miss payments with some homeowner and condo associations.

Be cautious about buying a foreclosed home in an association or a subdivision where there are only a few owners and lots of vacant lots. You and the few other owners will be stuck paying for the pool and other expenses originally meant to be spread among a lot of owners.

If you buy

Stay current on your assessment dues. Your association can place liens against your home the moment you’re late paying. If you owe more than $2,000, your association can foreclose on your property.

Keep records of your payments.

If you have trouble paying your dues

Tell the HOA or condo 
association you’re having problems. Many groups have been willing to work with members who are facing financial problems due to job loss or illness.

Try to work out a payment plan to avoid going to court.

Seek your own legal advice. But be aware there’s not much legal recourse you may have.

When you do reach an 
agreement, pay the debt as quickly as possible.

By the numbers

$4 trillion

Value of homes in HOA and condo associations. That’s 20 percent of all U.S. real estate.

$41 billion

Estimated annual operating revenue for U.S. HOA and condo associations.

Source: Community Associations Institute