A homeowners association, or HOA, is an integral part of living in a condo. And for condo owners in Park City, they can be even more important because of all the services they provide, but also for the services they don’t provide.
Whether you’re buying or selling a condo in Park City, here are some things you need to know about HOAs.
What Does an HOA Do?
Homeowners associations are organizations that create and enforce the rules and regulations of living in a condo, planned community, or even a subdivision. When you have a large group of people living within close proximity, there needs to be some guidelines on how residents should conduct themselves.
In most cases, HOAs charge a monthly fee, which includes services provided by the HOA. These services and fees can differ depending on the unique building or area. If you buy a property within the HOA jurisdiction, you are automatically considered to be a member of the HOA and will be expected to abide by the rules and pay the stipulated fees.
Curious about condo living in Park City? Read these posts next:
- Why Buy a Luxury Condo in Park City
- Is Park City Good for Investors?
- Is it Better to Buy or Rent in Park City?
What are the Benefits of Being Part of an HOA?
The biggest benefit to being part of a homeowners association is that maintenance and repair costs are usually covered in your condo fees and are not your responsibility to deal with alone. Depending on the HOA, you may also have parts of your utilities covered or even specific amenities such as the use and maintenance of fitness facilities or a pool, for example.
The Role of the HOA when Buying or Selling
When buying or selling a property under the jurisdiction of a homeowners association, the HOA is the organization that can provide the HOA budget, meeting minutes, CC&Rs, and other helpful documents.
Tip: As a seller, you can request the meeting minutes from the past few years of HOA meetings. This is where you will find details about any issues you need to be aware of.
Thinking about selling your home in Park City? Here are a few posts to help you get started:
- How to Find the Best Park City Real Estate Team to Sell Your Vacation Home
- How Much Does it Cost to Sell a Home in Park City?
- Should I Update Before Selling My Home in Park City?
What Do Condo Fees Cover?
Depending on your unique living situation and the HOA in question, your condo fees could cover a variety of monthly expenses. Here are a few examples of what some HOAs could cover through the collection of condo fees:
- Roof repairs
- Window repairs
- Garbage collection
- Snow removal
- Cleaning and maintenance of common areas
- Landscaping
- Maintenance of building amenities
- Water/sewer
- Electricity and other utilities
- And more!
While some HOAs cover a lot, some only offer minimal service. It’s important to read the fine print.
Are you in the market to buy a home in Park City? Check out our FAQ for buying a home in Park City right here.
Condo fees collected pay for various maintenance, repairs, and amenities, but some of the fees also go into something called a “reserve fund.” If the building requires any major or unexpected repairs, this is referred to as a “special assessment.” In many cases, the reserve fund should cover SAs, however, if there is not enough money in the reserve, the homeowners will be required to cover the remainder.
This is why it is important to inspect the status certificate before purchasing a condo. The more you know about the HOA, the better prepared you are for unexpected repairs or expenses. Additionally, some mortgage lenders won’t lend for a property without proper reserves. The risk is too high.
Note: Homeowners associations are federally regulated, in most cases, they are required to keep at least 10% of the condo fees paid for the reserve fund.
Tips for Working with an HOA in Park City
If you live in a condo or planned community in Park City, chances are, you need to work closely with your HOA on a regular basis.
Here are a few insider tips we’ve encountered over the years to help you make the most of your HOA:
- Be prepared to see costs increase year-over-year. For example, in Park City specifically, this is important. As home values in the area increase, the cost of insurance also goes up.
- Unexpected seasonal shifts can also sometimes result in a special assessment. For example, if there is excessive snowfall, the HOA may need to dip into the reserve to cover the extra cost of snow removal.
- Some HOAs offer comprehensive coverage, “from the sheet rock out” as we like to say. While others only cover the common areas of the building. It’s important to read the fine print.
- Regarding fine print, there also may be stipulations to specific things the HOA covers. For example, roof repairs may be covered by the HOA but if the roof leaks, they will not cover interior damage. We’ll say it again: read the fine print!
- In Park City, finding a homeowners association that covers windows is about 50/50, some do, and some don’t
- Always make sure you are talking to the correct person when dealing with the HOA. Depending on the size of the building, these organizations can be quite large and you always want to make sure you are getting good information from the right person. If you suspect the info you are getting is inaccurate, call someone else.
At the end of the day, your HOA is there to help you enjoy the ease and convenience of condo living. Much of the hassle of maintenance and repairs is gone and the HOA is left to deal with the logistics and payments.
However, at the same time, HOA agreements can be complex and long. Make sure you read all the details and understand the fine print before buying a property with a homeowners association.
More Reason to Work with an Experienced Park City Real Estate Team
Here at CMFH, we have helped countless buyers and sellers navigate the process of buying or selling condos in Park City. Whether you’re wondering about red flags on a condo status certificate, or you’re looking for a Park City condo with amazing amenities and fair condo fees, we can help!
If you have questions about buying or selling a condo with an HOA, get in touch with us today! Call us directly at 435-647-8035 or email info@cmfhparkcity.com.
