Did You Plan for HOA Fees in Estimating the Cost of Purchasing Your Real Estate?
When purchasing real estate in a community with a homeowner’s association (“HOA”), the buyer must assess these fees in estimating the cost of maintaining their property. Such a fee does not exist for single-family homes outside such communities. The HOA fee is mandatory. Once you acquire the property in the homeowner’s association, you are automatically a member of the association and subject to the HOA fee and/or assessments.
An HOA member cannot waive or avoid paying the assessment by claiming that they don’t use the common areas, do not agree with the Board’s functioning, or have abandoned the property. If unpaid, the HOA fee can result in a lien on the property of the homeowner with no offsets against the specified amount and will remain a lien on the homeowner’s property when it is sold. Further, if the homeowner fails to pay the fee and any late charges or penalties, the HOA has the right under its governing documents to foreclose on the property to collect its assessments and related charges, including attorney fees. Keep in mind this fee is in addition to the property tax that a homeowner must pay and any loan payments to be made on the property. An HOA fee is a fixed cost that doesn’t get paid off.
We can help you understand the process of buying real estate better. Contact us at 516-570-4016.