Prior to listing a property on the MLS, get all the information you need that pertains to the homeowners association. Note that it’s not only condominiums that have HOA. A lot of single family residences in PUDs or gated communities have an association as well.
- Dues vary from unit to unit. Make sure to verify with the HOA or the management company the dues specific to the unit you’re listing. Do not use an older listing or estimate from what the seller is telling you, verify for yourself. Also verify the frequency, not all dues are monthly; some HOAs are quarterly or even yearly.
- Check with the HOA if the complex is FHA approved or if there are special restrictions against financing. If the management company does not know, you may get additional information from the HUD website. You do not want to accept an FHA offer and then find out the complex is not FHA approved. (https://entp.hud.gov/idapp/html/condlook.cfm)
- Get CC&Rs from the seller if they have a copy. Familiarize yourself with basic rules and regulation. Ex: if pets are allowed, if subleasing is allowed or other rules of the association.
- What the HOA covers. It’s important to know what the dues cover: insurance, maintenance, utilities, security, etc.
- Find out if there are any special assessments set or upcoming. Most HOAs will know ahead of time if they are going to increase dues or have an assessment for an improvement in the complex. If the board agrees to change the roof, they will decide on a date to collect the special assessment, if it’s a lump sum, or if they’ll be adding to the monthly dues, and will announce it to the homeowners.
Jenny Manukyan is the Transaction Manager here at JohnHart Real Estate, as well as an agent herself. Being the supervisor and "linchpin" in our short sale operations, has endowed Jenny with invaluable knowledge; and here on the JohnHart Gazette she hopes to share that with you all!
