Homeowners' Associations
If you are looking for an Austin home, it is very likely that some of the houses you consider will be located in an area with a homeowner's association. This article will give you some basic information about these organizations, their responsibilities, and possible downsides to them.What Is a Homeowners' Association?
Sometimes a real estate developer wants to ensure that the property he or she owns is kept up to certain regulations, but does not want to spend time personally monitoring the property or handling disputes between neighbors. A common solution to this problem is to establish a homeowner's association, a legal entity comprised of people who live in the neighborhood.HOA's Authority
The duty of a homeowners' association is to enforce the covenants, creeds, and restrictions (CC&Rs) that people agree to when they buy land within the neighborhood. Common CC&R's include:- Keep the house and yard in reasonably good condition
- Make sure the property looks nice (some HOA's may even specify home colors, lawn decorations, etc that are allowed or banned)
- Do not run a business out of the house
- Do not significantly alter historic parts of the property
Homeowners' associations have the authority to punish transgressions if necessary. The punishments they are allowed to enforce include:
- Fines
- If fines remain unpaid, Texas HOA's have the ability to foreclose on a property
