Who rules your roost?

SAN FRANCISCO (10/10/07)--Buying a home is an exciting, yet stressful time. And if you're moving into a community governed by an association, know the rules to avoid misunderstandings that could have legal and financial consequences (MarketWatch Sept. 30).

More than 57 million people lived in association communities in 2006, according to Community Associations Institute, a trade group in Alexandria, Va. Of that total, homeowners associations and other planned communities account for 52% to 55%, condominiums account for 38% to 42%, and cooperatives make up the remaining 5% to 7%.

Madelyn, a former condo association president in the Midwest, told News Now there are pros and cons to association living. "It's definitely a pro that there's consensus when things are decided. The majority wins," she said. Her biggest frustration: "There was kind of a good ol' boy network. For example, the cousin of one of the condo owners became the handyman. He wasn't responsible ... you get what you pay for."

Research and do your homework before moving into a community governed by an association. Ask about:

• Exterior items on the home or in the yard. Many associations have bylaws restricting TV antennas, satellite dishes, basketball hoops, clotheslines and fences. Something inside your unit that's visible to neighbors--like a political poster in a window--also falls under the "exterior" rules.
• Vehicles. There often are restrictions on parking boats, snowmobiles, RVs, or collector automobiles at your residence. Make sure you can make other arrangements for storage if this is the case. If you run a home-based business, check on restrictions for parking commercial vehicles or regarding increased vehicle and foot traffic from your clients.

For condo owners in particular, check on:

• Pet or pet-size restrictions. Some associations do not allow pets, or will limit the type or size of animals.
• Landscaping. Know what the association covers and what you'll have to pay for and do yourself. Madelyn said basic lawn care was included in her association's agreement, but when it came to tree-trimming, she had to do it herself or hire someone. Another Midwest condo owner, Mike, ended up paying $2,000 to have overgrown trees removed that he no longer wanted in his yard. They looked awful, but the association wouldn't agree to remove them, he told News Now.
• Age restrictions for owners and guests. For baby boomers looking toward retirement or for those already retired, builders have created housing areas for those age 55 and older. Check restrictions on times and how many grandchildren are allowed to visit at once, and whether they're allowed in the swimming pool and fitness center.

For more information, use the "What Will My Monthly Mortgage Payment Be?" calculator in Home & Family Finance Resource Center.

courtesy of cuna.org