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HOAs.
Your house. Your neighborhood. A few extra rules. From monthly dues to mysterious letters about your lawn, here's what you should know about Texas homeowners associations before you buy.
Home sweet home.
Terms and conditions apply.
Found the perfect Texas neighborhood? Beautiful houses, a community pool, maybe even a little walking trail?
There's a chance it comes with a homeowners association. Before you unpack, let's talk about what that actually means.
What exactly is an HOA?
A homeowners association is an organization that manages certain shared responsibilities within a residential community.
Depending on the neighborhood, it might maintain common landscaping, neighborhood amenities, private roads, or recreational facilities. It may also enforce community rules and collect assessments from homeowners.
Do you have to join?
In a mandatory HOA, membership generally comes with owning the property. Buying the house means accepting the applicable governing documents and assessment obligations.
Voluntary neighborhood associations are different. Check which kind you're dealing with before you buy.
So, what are you paying for?
HOA dues are separate from your mortgage, property taxes, and homeowners insurance. What they cover depends on your community.
Monthly, quarterly, or annually.
Regular assessments help pay for ongoing community expenses, such as landscaping, maintenance, and amenities.
Surprise. Another bill.
An association may levy additional assessments for major repairs, improvements, or unexpected expenses, subject to its governing documents and applicable law.
Saving for a rainy day.
Some associations maintain reserves for future capital projects and significant maintenance expenses.
Read the fine print.
Transfer fees, resale certificate charges, late fees, and other costs may apply. Ask for a full fee schedule.
A quick budgeting example.
An HOA charging $150 per month adds $1,800 to your annual housing costs. That's before any special assessments or other applicable fees.
Wait. There are rules?
Depending on your community, HOA restrictions might address exterior paint colors, fences, landscaping, parking, rentals, or changes to the outside of your home.
These rules are generally found in the community's governing documents, including its declaration, restrictive covenants, bylaws, and adopted rules.
Before you buy that hot pink front door...
Review the community's architectural requirements. Some exterior improvements require approval before work begins.
HOA restrictions are also subject to applicable Texas law, which limits certain types of restrictions.
Five things to check before closing.
Your future HOA deserves a little homework. Here's where to start.
Review restrictions, bylaws, architectural guidelines, and community rules.
For applicable subdivision HOAs, this document provides information about assessments, unpaid amounts, reserves, financial information, and other association matters.
Understand how the association manages its money and whether significant expenses are anticipated.
Find out whether additional assessments have been approved or major projects are planned.
Find out what the association's policy covers and what insurance you'll need to purchase yourself.
What if you disagree with your HOA?
Texas law provides homeowners in applicable associations with protections involving association records, meetings, voting, assessments, and certain enforcement procedures.
Start by reviewing your governing documents and requesting clarification from your association. Depending on the dispute, Texas law may provide additional procedures or remedies.
Can an HOA foreclose on your home?
Under certain circumstances, an association may pursue foreclosure for unpaid assessments. Texas law imposes restrictions and procedures, so don't ignore notices about overdue assessments or liens.
Oh yeah.
Insurance.
Does your HOA cover your roof? What about the shared clubhouse? And who's responsible if a storm damages your townhouse?
The answer depends on your property, your association's governing documents, and its insurance policy.
One policy doesn't always cover everything.
Condo and townhouse associations may carry master insurance policies covering certain buildings or common areas. You'll still need to understand your own coverage responsibilities.
For detached homes, homeowners generally need their own homeowners insurance. Association insurance doesn't automatically protect your house.
Hey Charley is independent, so we can help compare coverage options from multiple insurance carriers and find coverage that fits your home.
They handle the neighborhood.
We'll talk insurance.
Buying a home in a Texas HOA? Let's make sure you understand your coverage options before moving day.
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