If you are thinking about purchasing a home that comes with a homeowner's association, you need to make sure that you understand exactly what you are getting into and what will be expected of you from your homeowner's association before you purchase your new home. Here are three things that you need to understand about how a homeowner's association can affect what you can do with your new home.
#1 You Will Have To Pay Your Homeowner's Association Fees Each Year
Homeowner associations are not free. When you purchase a home that is under a homeowner's association agreement, you will be obligated to pay into the association. Depending on how the agreement is set up, you will either have to make monthly payments to your homeowner's association, or you will have to pay a yearly fee. This is a cost you will have to pay the entire time you own your home. You need to make sure that you factor in the home association fees into your yearly business.
#2 Your Homeowner's Association Is Responsible For Providing You With Insurance
One of the benefits of paying either monthly or yearly into your homeowner's association is that they generally will provide you with some type of insurance. Most homeowner's associations provide all homes in their association a degree of insurance. It is one of the benefits of belonging to a homeowner's association.
Generally the insurance is designed to cover all shared features of your community. You will need to read your homeowner's associations bylaws in order to determine what level of insurance coverage they will provide you with. This may lessen the insurance burden that you will have to carry on your own and lower your insurance payments.
#3 Your Homeowner's Association Takes Care Of Shared Spaces
Finally, you need to understand that when you purchase a home that is involved with a homeowner's association, that the association is responsible for taking care of shared spaces. That means areas like parks, shared yards, community centers and pools are all taken care of by the association. They also take care of things such as sidewalks and stairwells.
A homeowner's association can provide you with some great benefits, such as disaster insurance and care of shared spaces. Make sure that you can afford the yearly cost of getting these benefits before you purchase a home with homeowner's insurance. Homeowner's associations can offer you some great perks if you can afford them.
For a homeowner's association, contact a company such as Cornerstone Properties Inc.