Ownership of real property includes various rights regarding the use of that property, but these rights are not absolute. Purchasing a particular piece of property often comes with specific restrictions on its use. Many residential properties are part of a planned development, such as a condominium building or a housing subdivision. Upon purchasing a property that is part of a “common interest development” (CID) under the laws of California, a real estate investor becomes a member of the homeowner association (HOA) for that development. HOAs can have considerable power and influence over their members, so it is important to know one’s rights and obligations before closing a sale.
What Is a Homeowner Association?