Potential Homeowner Fees

Homeowners' Associations

Congratulations! You've found a home or condominum, made an offer and you're ready to sign the purchase agreement.

Your agreement may include a contingency requiring you to abide by the rules of a community association. So, before you sign, ask your Real Living agent to help you understand what's being asked of you.

At its heart, a homeowners' association (sometimes called a civic association) is essentially a group of neighbors dedicated to neighborhood issues. But there's much more. A homeowners' association is a legal entity empowered to enforce private deed restrictions

Although such associations cost money (homeowners' dues or condo fees), many homeowners agree that they reap a big benefit – protecting the value of their home and property.

Homeowners' associations are typically granted these responsibilities:

1. Setting and collecting fees.
2. Maintaining community landscaping and recreation areas, such as swimming pools.
3. Holding regularly scheduled meetings to discuss homeowner issues.
4. Sending a periodic newsletter on neighborhood happenings and concerns.
5. Providing for and arranging special events, such as community-wide garage sales, social evenings, pool parties or block parties.
6. Enforcing deed restrictions.

Homeowners' association fees are set by a governing board, and can vary from a few dollars a year to hundreds of dollars a year. Fees are not included in your monthly mortgage payment; rather, they are an additional payment required by the association and usually paid annually.

Not every neighborhood has a homeowners' association (though most newer developments do). Contact a Real Living agent for information on which neighborhoods do (and do not) have homeowners' associations. Let your agent find out exactly how much, if anything, your homeowners' association membership will cost.

Condominiums almost always require some type of monthly fee to cover :

• liability insurance for common areas; and
• maintenance costs (parking lots, snow and leaf removal, lighting, landscaping, roofing, and amenities such as a pool, tennis court or party house).

Ask your Real Living agent or check with your condo board for specifics on condo fees for your area.