Homeowner Associations (HOA)

Author: Staff

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?

Author: Staff

Many California real estate projects involve common interest developments (CIDs), in which property owners have rights to various common areas in addition to the premises they own outright. In order to provide for the maintenance of common areas, owners of units in a CID are required to be members of a homeowner association (HOA). The HOA has considerable power to regulate the properties within the CID and to collect fees and assessments from members. In California, the Davis-Stirling Common Interest Development Act (“Davis-Stirling”) governs HOAs. San Diego real estate investors are likely to encounter HOAs. New developments will require the creation of a new HOA, while investors who buy existing properties might be bound by HOA rules.

Articles Posted in Homeowner Associations (HOA)

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