When buying property in a common interest development (“HOA”), one automatically becomes a member. Here are 14 items to consider before closing escrow:
Read the CC&Rs. CC&Rs are covenants automatically binding all association members when they take ownership without need of a signature. Read this document before taking ownership, not after. Look for restrictions regarding how your property is used – Are there pet limits? Can you park RVs in driveways? In a multi-story building, are there restrictions against hard floors? You need to know first, not later.
Review the reserves disclosures. Prudent associations set aside money each month to offset the ongoing deterioration of major capital components (roofs, asphalt, paint, etc.). Associations with little money saved in reserves may need special assessments or long-term loans to fund major refurbishments. Underfunded reserve accounts are a form of hidden debt not reflected on the balance sheet.
It isn’t about “me,” it’s about “us.” Common interest communities are just that – communities. Shared ownership also means shared control, which means you can’t just do anything you want (nor can your neighbors).
Is it managed? California HOA law is so complicated it is difficult to operate one without a professional manager. If the association has volunteer management, it is probably innocently violating many laws (and the board is probably working too hard as free community managers).
read more at: https://www.dailybreeze.com/2025/03/14/hoa-homefront-before-buying-into-an-hoa-read-this/
Green Real Estate Appraiser 