Not every vacant land property is in the HOA or POA community.
HOA / POA stands for Homeowners / Property owners Association, which is an organization of property owners in a subdivision, planned community, or condominium.
There are advantages and disadvantages to it. As it is a community, it comes with extra benefits such as roads maintenance, venues, social events, sport and leisure activities, utilities such as electricity, water connection, sewer, etc. This is one of the best ways to keep your neighborhood safe, clean and in order. However, it demands some sacrifices from the homeowners as well.
If vacant land belongs to HOA/POA, make sure to understand it’s benefits, yearly fees, building requirements and other regulations by requesting the Declaration of Covenants, Conditions and Restrictions Document. This is the formal HOA documents that are given to every homeowner at closing that include all the rules and regulations of the association. The document includes but is not limited to: House size restrictions, color restrictions, building materials, pets, parking, dumping and littering. The document covers common areas of the subdivision as well as architectural guidelines to protect property values and conform to zoning requirements.
HOA, usually applies additional requirements (independent of County) what can be done with your property and what is not allowed, therefore it is essential to get all relevant information.
Find out your HOA name and search on the internet to see if you find their website. Larger HOA communities have great internet portals with all information available online. Alternatively, give them a call to understand their requirements and yearly fees.
HOA fees are paid by the homeowners and go towards the costs associated with maintaining common areas. This can include landscaping, painting, repairs to shared structures such as clubhouses and pools, property management services and more.
Outstanding HOA yearly fees will be visible in your Settlement Statement provided by a Title Company during the closure process. Usually, should there be some fees outstanding, it is an agreement between you and your seller who will cover them. Latest at this point you can still opt out of purchase should there be no agreement met.
If you'd like to know more about HOA, check out our article.
