Homeowners Association Nightmares Come True

When someone finds their dream home, it can be hard to fathom that something as innocuous as a homeowners association can turn it into a nightmare. After all, this is the group that’s in charge of mundane duties such as mowing grass, shoveling snow and maintaining pools and recreational facilities. How could things go bad? It happens all too often and pretty easily.

The reason for this is that, simply put, many homebuyers may not read the fine print in the agreements that they sign. They may end up being fined for anything from painting their front door the wrong color to leaving up Christmas lights for too long. Therefore, it’s important for real estate agents and investors alike to be aware of all regulations and abide by them, in order to avoid scenarios such as these:

Pet Peeves

Many homeowners associations govern the amount and type of pet that is allowed. One group in California took things a bit further and required that all dogs be carried through the condo’s lobby, in order to prevent bathroom incidents or possible attacks. An elderly resident was fined $25 every time she walked her cocker spaniel through the lobby. Be sure to be aware of any obscure rules governing pets in order to avoid a costly and repeated fine such as this one.

Flamingo Follies

Sure, it may be well-known to keep lawns maintained and weed-free, but there may be rules governing what goes on that lawn, from flowers to children’s play sets. Some rules may even prohibit certain lawn decorations. One couple in Georgia discovered they had a $3,500 lien on their house because they were never told that their homeowners association was fining them every day for the pink flamingos on their lawn. The couple has sued to get that money back.

Conform or Else

Conformity is the key in many developments that have a homeowners association. Rules can govern everything from paint colors to mailboxes. So if a homeowner is considering buying a new mailbox, it would be wise to examine their policy first. One Florida couple were told by their HOA to replace their plain mailbox from Home Depot with a pricey Victorian-style model in order to better fit in with the neighborhood.

Not-So-Jolly Holidays

For many, putting up Christmas lights over Thanksgiving is a family tradition, and some people leave those lights up well after the holidays have passed. However, some homeowners associations have regulations regarding holiday lighting, including when they can be put up. A woman from South Carolina received a letter from her HOA telling her to take down her lights because she put them up before Nov. 30. That’s not the kind of holiday greeting you’d want to get.

Dues or Die

Whatever happens, don’t fall behind on those HOA payments. One California woman fell behind with her dues during a divorce and got into a legal battle with her homeowners association. The disagreement was over a $200 difference. The woman won the lawsuit, but the judge said she should have made back payments during the lengthy court proceedings. She was then nailed with $22,000 in legal fees.

Fee Frenzy

Believe it or not, there can be instances in which a homeowner’s HOA fees exceed the mortgage payment. This happened to a resident of a restricted-income unit who had a low and reasonable mortgage payment, but his HOA fee began to skyrocket. The reason for this was that the older building needed extensive upgrades, and the fees rose accordingly to pay for them, eventually topping his mortgage payment. It’s vitally important to read the homeowners association’s reserve study that would discuss any needed or upcoming repairs.

Many of these nightmares could have been avoided by simply being aware that such regulations exist. Make sure you understand these rules and make them clear to homebuyers; bring in a lawyer if necessary to cut through all the legalese. In this way, homeownership can be the American dream that it’s meant to be.