Buying a home is one of the biggest financial and emotional investments you’ll ever make. When that home is part of a community governed by a Homeowners Association (HOA), it’s not just the property you’re purchasing — it’s also a set of rules, obligations, and fees that can have a significant impact on your daily life.
We’ve helped countless homebuyers navigate New Jersey’s complex real estate landscape. One of the most overlooked — but crucial — steps in buying a home within an HOA is thoroughly reviewing the association’s governing documents before you sign on the dotted line.
Here’s why it matters:
What Is an HOA, and Why Does It Matter?
In New Jersey, many residential developments — including condos, townhomes, and even single-family home communities — are managed by HOAs. These associations are responsible for enforcing community rules, managing shared spaces, and collecting dues from homeowners for maintenance and services.
The HOA’s authority is derived from a set of governing documents, including:
- Covenants, Conditions, and Restrictions (CC&Rs)
- Bylaws
- Rules and Regulations
- Annual Budgets and Financial Statements
These documents are not mere formalities. They function like a private layer of law over your property and your neighborhood. And they’re enforceable.
Real-Life Impact: What HOA Rules Can Regulate
HOA rules can be surprisingly far-reaching. Here are just a few of the areas they often cover:
- Exterior Appearance – Want to paint your front door red or install solar panels? Your HOA might have a say.
- Parking Restrictions – Some associations prohibit street parking or limit how many cars you can have in your driveway.
- Pets – There may be restrictions on the type, size, or number of pets allowed.
- Renting Out Your Property – Planning to turn the home into a rental someday? Some HOAs limit or outright ban short-term or long-term rentals.
- Home Businesses – Running a business from your home may be subject to restrictions or regulations.
- Landscaping and Fencing – You may be limited in the types of plants you can grow or the height of your fence.
Failing to follow these rules can result in fines or even legal action. In some cases, persistent violations can result in a lien being placed against your home.
Too often, buyers focus on the aesthetics and location of a home without fully understanding the obligations they’re agreeing to. That’s where we come in.
It is important for Buyers to Understand they are not just buying a home, they are becoming a member of a community that has its own rules and regulations. A homeowners association can be GREAT but::
- Understand what rules apply to their prospective home;
- Identify any red flags that might affect future use or enjoyment of the property;
- Determine whether HOA fees are reasonable and how they may increase over time;
- Evaluate the financial health of the HOA (an underfunded reserve account could spell future special assessments for homeowners).
In short, a Buyer needs to make an informed decision — not just about the house, but about the lifestyle that comes with it.
Questions to Ask Before You Buy
As you consider a home governed by an HOA, here are some key questions to ask:
- What are the current monthly or annual dues?
- Are there any pending special assessments?
- Has the HOA been involved in any recent or ongoing litigation?
- How often have fees increased in the past five years?
- Are there restrictions that could limit how you want to use the property?
Our legal team can guide your through this process … .it starts with an attorney review.
Don’t Be Surprised — Be Informed
Living in an HOA community can offer benefits like well-maintained common areas and increased property values. But it can also come with constraints that aren’t right for everyone.
Before you finalize your purchase, make sure you understand exactly what you’re agreeing to. At Riley and Gutman, we believe that every real estate transaction should come with clarity, not surprises. If you’re buying a home in New Jersey and want peace of mind about your HOA obligations, we’re here to help.