When purchasing a condo or house in a gated community, you will automatically be part of the homeowners association; better known as the HOA. As part of the HOA, you will receive services that are set out in your condo agreement. Examples include maintenance of all common areas which typically include gardens, elevators, gymnasiums, tennis courts, and swimming pools. Some homeowners associations also cover the cost of gas and water for your home.
In return for these services, you will be required to pay monthly, quarterly or annual maintenance fees as specified by your condo administration.
In addition to maintaining common areas, the HOA establishes certain rules that all residents must comply with. These rules are agreed upon at the annual meeting of the HOA or at a separate, “extraordinary” meeting if necessary.
Before buying a condominium or house in a gated community here are a few things that you’ll want to do:
- Confirm that the maintenance fee related to your property is paid up to date.
- Obtain a written copy of what services are covered by your maintenance fee.
- Review the financial statements for the condo corporation for the past two years.
- Review the rules and regulations for your condominium complex.
- Read the minutes of recent meetings of the HOA.
- Find out if there are special projects planned for the condominium complex, which are not covered by your regular maintenance fee, and the related costs.
- Find out what insurance coverage your complex has, and what additional coverages you will need to arrange.
This list isn’t exhaustive, but it will give you a good start.
Contact us, and we’ll get you on your way to years of enjoyment in your new home!