Millions of people visit Delaware each year. Between the beautiful beaches, historic towns and tax-free shopping, there’s plenty to enjoy. For some of those vacationers, a short visit turns into a long-term stay.
Whether you’re considering a vacation home or making Delaware your permanent residence, your home will likely be in a community that’s part of a homeowners association (HOA) community. Understanding the rules, obligations and fees that are part of an HOA can save you time, money and stress down the road.
HOA rules are legally enforceable
An HOA is a legal entity that governs certain residential communities. By purchasing a home in the community, you automatically become a member and must follow its rules and pay its fees.
If the annual fees exceed $500, you are entitled by law to receive a complete set of the governing documents, which includes:
- Covenants, Conditions and Restrictions (CC&Rs)
- Bylaws
- Rules and regulations
- Meeting minutes
- Budgets
- Financials
- Insurance information
It is vital that you carefully review these documents, as they govern everything, including architectural changes, parking, pets, rentals and landscaping.
The HOA’s governing documents outline the process for rule enforcement, which may include:
- Written notice of the violation
- An opportunity to fix the violation
- Fines for ongoing non-compliance
- Force compliance through legal action
The rules are legally enforceable but can’t be discriminatory or violate privacy. Fair, consistent enforcement is key.
Payments due to the HOA
HOA fees help to cover the cost of insurance, maintaining common areas and community services. In addition, the HOA may levy special assessments to cover major repairs or upgrades if reserve funds aren’t sufficient. Failure to pay your dues could result in a lien being placed on your property.
Any real estate transaction, especially one involving an HOA, should be reviewed by a legal representative. They can interpret complex governing documents, help ensure you receive the required disclosures and provide guidance on risks. Understanding what you’re signing up for can help prevent buyer’s remorse later.