HOA and Condo Associations: The difference.
When looking at the latest real estate listings you most certainly have seen the monthly fees connected with a “Homeowners’ Association” (HOA) or “Condo Association.” They are both monthly payments that owners must pay beyond property taxes.
You may think of these two separate fees as being the same. They both characterize an amount of money that occupants pay to cover everyday upkeep and repairs that all residents encounter. However, there are key factors that distinguish the two. Being cognizant of these differences will steer you to take one necessary action that can be extremely advantageous.
HOA and CA
The main contrasts between HOAs and CAs result from the two distinct types of ownership. Homeowners’ Associations most often are comprised of dwellings where each resident owns their homes and land. They likely share some common spaces. In one HOA that space might be a patio, a garden, or even a swimming pool or fitness area. In another HOA, the joint space might simply be a small flowerbed with a bench and a sign.
Now for a Condominium Association you will find that the shared commitments are more wide ranging because of the type of ownership and what it entails. While the condo owner owns his individual unit, he must share the obligation for the building and surroundings. (Where does the unit end and the building begin? You can clearly see how vital the differences can be).
Now there is one “necessary action” that you can take that will be “extremely advantageous.” When thinking about current condominiums available, or ones that list an HOA, make sure you have obtained an up to date copy of the agreements you will be bound to if you sign on the dotted line.
Most importantly, make sure the list is current!
HOAs and Condo Associations can both be wonderful resources in caring for what is likely one of your biggest investments. Do not wait until the day you sign to get a copy of the rules and regulations. Otherwise you may be surprised at the additional expenses.
When you work with us, we will be there through the entire process to ensure you get all the facts you need. Contact us today!