What newcomers need to know about HOAs
Many homes in the Houston area are located in neighborhoods and subdivisions that are managed by homeowners associations (HOAs).
This is an important topic for Realtors to discuss with their relocation buyers, because each HOA has its own specific regulations.
In a nutshell, HOAs protect the common interests of all the homeowners in a particular neighborhood or community.
Agatha Brann, a broker associate with John Daugherty, Realtors, said that one of the first things that she discusses with her relocation clients is the fact that Houston doesn’t have zoning laws. That tends to lead to a deeper conversation that she has with her clients about HOAs, what they do, and the benefits they offer property owners.
“In Houston, the HOAs are our protection as to the value of our properties and the condition of the neighborhood, and to the homeowners themselves,” Brann said. “So, it’s very important that we have them.
“The Texas property code regulates the HOAs as to what they can and cannot do. The HOAs then in turn regulate the neighborhoods as to what they can and cannot do. It gives homeowners a clear definition of what the guidelines are, and it helps maintain and protect our property values.”
The reason that Brann said that she talks about HOAs so early in the process, is because there are so many different ones in the Houston market. She said that since lots of people move to Houston from out of town, they generally understand zoning, but can get confused by HOAs.
So, until a client has zeroed in on a particular subdivision or property, Brann said that she talks about HOAs in general terms.
“We talk about each neighborhood, in and of itself, having some sort of protection. Most of the larger HOAs will have a management company that takes care of things like regulations, and getting repairs done in the neighborhood, and collecting the fees. Usually clients are most comfortable just knowing that they have somebody watching over and protecting the property values in general,” Brann said.
In the event that a dispute erupts between a homeowner and the HOA, Brann said that the homeowner has the right to object.
“Most of the time if a homeowner has an objection, they come to the board and state their objection. Then there is a conversation of the board, and a decision from the board. Then they go back to the homeowner on a one-toone basis. There’s usually a really good channel of communication between the homeowners and the boards, because after all, the boards are representing the homeowners,” Brann said.
Ed Wolff, president of Beth Wolff Realtors Real Living, said that there are also many nuances to the HOA discussion that he has with his relocation clients.
“Neighborhoods can also form restrictions without having an HOA, and without an HOA, those restrictions are enforced by the City of Houston,” Wolff said. “That is sometimes a hard concept for people to grasp.”
He added that while most HOA memberships are considered mandatory for homeowners in particular neighborhood, that there are also other neighborhoods where membership might be voluntary. For that reason, Wolff said that it is important for newcomers to work with an agent who understands the difference between voluntary and involuntary HOAs.
Wolff also said that it is very important for buyers to be able to review the information about the HOA when purchasing a home requires mandatory membership, and to make sure that they understand and are comfortable with the regulations.
“We usually ask for that information to be provided within 10 days of the effective date of the contract. Then, within 7 days after receipt of that information, the buyer has the right to object to anything in there. That’s not something that the seller can typically change, but it is something that may make a buyer not want to move forward in purchasing the property,” he said.
The best advice that Wolff gives to newcomers who buy a home with an HOA is to get involved in the association and attend the meetings. He said that this is the best way for homeowners to participate and have a voice.
“You can’t complain, if you don’t participate,” Wolff said. “If the HOA is doing something that is inappropriate, or something that you’re not comfortable with, odds are that the majority of your neighbors feel the same way.
“So, if you are truly unhappy with what an HOA is doing, you can gather your neighbors and show up at a meeting.”
“Usuallymost comfortableclients are just knowing that they have somebody watching over and protecting the property values in general.” Agatha Brann, John Daugherty, Realtors