Is our new home in an HOA neighborhood or not?

Introduction to the Issue

Buying a home is an exciting milestone, but it can come with surprises — like discovering a homeowners association you did not know existed. Whether you are legally required to pay the annual fee depends on a few key factors. One of the neighbors told us there is an association, but all it does is maintain the road. We are being asked to pay a hundred dollars once a year. Is this legit?

Understanding Homeowners Associations (HOAs)

First, check your property’s deed and any documents you received during the home-buying process. If the HOA is legitimate, there should be recorded covenants, conditions, and restrictions tied to your property. These documents outline the rules of the association and your obligations as a homeowner. If the HOA is officially recorded and your property is part of it, then you will need to pay the annual fee.

Mandatory vs. Voluntary HOAs

If you cannot find a recorded document, the association may be voluntary. Voluntary HOAs do not have the same legal authority as mandatory ones, and act more like a civic association. In this case, you are not legally obligated to pay the fee, but contributing could still be a good idea if it helps maintain shared resources like the road. After all, a well-maintained road benefits everyone in the neighborhood, including you.

Verifying the HOA’s Status

To be sure, you might want to contact the title company or attorney who handled your closing. They can help you confirm whether the HOA is mandatory or voluntary. You could also ask the neighbor who mentioned the association if they have any documentation or contact information for the HOA.

Understanding Your Obligations

Finally, if you do find out the HOA is mandatory, make sure you understand your obligations. Even small associations can have rules about things like property appearance or shared responsibilities, so it’s good to know what you’re signing up for. If it’s voluntary, the decision to pay is ultimately up to you, but contributing to the upkeep of shared resources can help foster goodwill with your neighbors.

Conclusion

In short, do a little digging to confirm the HOA’s status. If it’s mandatory, you’ll need to pay the fee. If it’s voluntary, it’s your choice — but maintaining good neighborly relations and a well-kept road might make it worth the small cost.

FAQs

• Q: How do I find out if my neighborhood has an HOA?
  A: Check your property deed and documents from the home-buying process for recorded covenants, conditions, and restrictions.
• Q: What is the difference between a mandatory and voluntary HOA?
  A: Mandatory HOAs are legally recognized and have the authority to enforce rules and collect fees. Voluntary HOAs are more like civic associations and do not have the same legal authority.
• Q: Do I have to pay the annual fee if the HOA is voluntary?
  A: No, but contributing to the upkeep of shared resources can help maintain a well-kept neighborhood and foster goodwill with your neighbors.
  
  Board-certified real estate lawyer Gary Singer writes about industry legal matters and the housing market. To ask him a question, email him at gary@garysingerlaw.com, or go to SunSentinel.com/askpro.