Tuesday, June 10, 2014

What is a homeowners association?

We have all heard the term Homeowner's Association (HOAs) at some point our lives, whether we heard our parent talk about it or when finding a home of our own.
A Homeowners' Association is a legal non-profit organization or entity that is formed by a real estate developer in order to maintain common areas, promote, manage and sell homes or lots in a residential subdivision. This community governs the general rules of what can or can't be done in the property.

HOAs have the authority to enforce the conditions and regulations established by the property and the city. The membership is mandatory for all property owners within the development. When a person buys a home with HOA, he/she instantly becomes a member of this group and is entitled to the rights and rules of this organization.

Many condos and townhomes have a Homeowner's Association which is created when the property is built. These associations maintain the value and quality of the properties associated and make sure the Covenants, Conditions and Restrictions (CC&R) issued are being applied and followed by all members. HOAs have legal power and usually charge a fee that is used to maintain the properties' common areas and pay for common services, unexpected emergencies or repairs. If you’re looking to buy or rent a new home, it is important to know the HOA related to the property. Renters have to follow the rules established by these organizations as well since they are part of the community.

At Ontrack Asset Management, we provide the best services for HOA's management. We are a full service property management company specializing in condominium, town home and single family Homeowners Associations in Los Angeles. We manage for the future and offer real solutions.