HOA Fees and Rules in Raleigh: What to Check Before Buying

An HOA can pay for shared maintenance and amenities, but the fee in a listing does not tell you everything you will pay—or everything you can do with the home. Before buying in Raleigh or elsewhere in the Triangle, confirm all association charges, the work those charges cover, and the rules that affect how you plan to use the property.

A homeowners association, or HOA, manages shared property and enforces the community's governing documents. If the home is subject to mandatory membership, association obligations come with owning it. Ask your agent to request the current documents through the seller and listing agent early, preferably before you make an offer.

Add up every HOA payment, not just the advertised dues

Start with the seller's Residential Property and Owners' Association Disclosure Statement, when one is required. North Carolina's disclosure law calls for information about association dues, services, approved assessments, transfer-related charges and certain lawsuits. Exemptions and “no representation” answers are possible, so the disclosure is a starting point, not confirmation that every charge is known. Read North Carolina's required-disclosure law.

Request written amounts and payment dates for:

• Regular dues: the amount, whether billed monthly, quarterly or annually, and any approved increase with its effective date.
• Every association attached to the address: ask whether a master association and a separate neighborhood or building association each collect dues.
• Special assessments: extra charges beyond regular dues. Ask which have been approved, which are still being discussed, what each would pay for, and the installment dates.
• Charges at the ownership transfer: request an itemized list of document, account setup and other association-related charges. A capital contribution, if required, is a separate payment into association funds; ask what it pays for and whether it repeats.
• Optional amenity costs: ask whether using the pool, clubhouse, golf facilities or other advertised amenities requires a separate membership or payment.

Have your closing attorney review unpaid charges and the contract's allocation of payments between buyer and seller. A planned roof replacement discussed in meeting minutes is different from an approved assessment with a bill. Neither should be reduced to “the HOA fee.”

A fee comparison using invented amounts

Suppose one association charges $90 quarterly and a master association charges $600 annually. Together, that is $960 a year, or $80 a month for budgeting. You would still pay on the associations' actual billing schedules.

If a separate $3,000 special assessment is approved and the contract makes you responsible for it, budget that $3,000 in addition to regular dues. Confirm its due date and who must pay before signing. These figures illustrate the calculation; they are not Raleigh averages or a quote for any community.

For the rest of your purchase budget, see what Raleigh buyers pay before and at closing.

Find out which repairs and services your dues cover

An association that handles work you would otherwise arrange yourself may be useful. The tradeoff is paying its charges and following its rules. Compare the written maintenance responsibilities with the services you actually want, rather than treating a higher or lower fee as automatically better.

Ask the seller or association manager to identify who pays for:

• Roof, siding and exterior paint repairs or replacement.
• Yard care, trees, irrigation and drainage work.
• Private streets, sidewalks and shared parking areas.
• Pool, clubhouse and other shared facilities.
• Water, sewer, trash collection or other services listed as included.

Do not assume townhome dues cover the roof or that a detached home's dues cover its yard. Ask for the document that assigns each responsibility. If you must maintain an item yourself, keep that expense in your household budget even when the association charges dues.

For a condo, ask your insurance agent to compare the association's insurance with the coverage you need for the unit, personal belongings and possible charges for an association insurance deductible. Ask your lender whether the building and association require a separate loan review, and what documents it needs.

Read the covenants, bylaws and current rules together

These documents answer different questions. Request the current versions, including amendments:

• Recorded declaration and restrictive covenants: the property's obligations and restrictions, including assessment and use provisions.
• Bylaws: how the association is governed, including board positions, elections and amendments. North Carolina's planned-community bylaws statute describes these governance requirements where it applies.
• Rules and architectural guidelines: the procedures and restrictions you need to check before making changes or using shared facilities.

Ask your closing attorney to confirm which recorded documents apply to the property and whether it is legally a condominium or a planned-community lot. North Carolina's Planned Community Act has applicability rules and exceptions. A rule about one type of association should not be assumed to apply to every home.

Check the plans that matter to you specifically. If you want a fence, a shed, a different exterior color, a work vehicle in the driveway or a rental tenant, ask for the relevant restriction and approval procedure. For rentals, check minimum lease length, any cap or waiting list, and whether approval is required before leasing. For parking, check the rules for the vehicle and space you expect to use.

Request written approval records for an existing fence, deck or other change you care about. Ask the association manager or board whether there are outstanding violation notices for this property. A neighbor's similar fence or the seller's verbal assurance does not establish that yours is approved. If a restriction is unclear or disputed, have your attorney interpret it before relying on an answer.

Check the budget and possible major repair costs

Request the current budget, latest available financial statements, recent board and annual-meeting minutes, and any available reserve study. A reserve study estimates major repair or replacement costs and when they may occur; reserve funds are money set aside for those costs. Ask about planned work, approved dues changes, proposed assessments and pending litigation.

Useful questions include: Is a pool repair, roof replacement or private-road project approaching? How much money is already set aside? Would the association use savings, borrow money or ask owners to pay an additional assessment? If estimates or a funding decision are missing, identify that uncertainty rather than assuming today's dues will cover the work.

For associations covered by the relevant provision of the Planned Community Act, financial and meeting records must be reasonably available to lot owners and their authorized agents. A prospective buyer should request them through the seller and listing agent, rather than assume the same direct access. Read the association-records statute.

If the home is new construction, ask who controls the board now, when owners are expected to take control, and what the budget assumes about the builder's contributions and unfinished amenities. Ask for any promised completion dates in writing; a sales brochure does not confirm future HOA dues or special assessments.

Review the documents within your contract's deadlines

If records are missing before an offer, discuss the missing items and the time needed to obtain them with your agent and attorney before agreeing to the contract and due diligence fee. Once under contract, request the remaining records immediately and calendar the applicable review and termination deadlines.

Do not assume late HOA documents automatically extend your deadline or make your due diligence fee refundable. The Commission's 2017 explanation of due diligence fee refunds describes the fee's generally nonrefundable treatment and exceptions under the standard contract of that time. Your actual contract and addenda control; your attorney should explain your rights, any extension you need, and how to deliver a required notice.

Condo purchases can involve different disclosure requirements. For example, North Carolina's condominium-resale statute addresses a statement of common-expense assessments and other fees before conveyance, with exceptions. Ask your attorney which requirements apply to this purchase; do not substitute a planned-community checklist for that legal review.

Send us the address and the HOA question you need answered

Considering a home with association dues? Send HomesRaleigh the property address and your question about fees, repairs, parking, rentals or document deadlines. HomesRaleigh is Raleigh Realty's sister site. A Raleigh Realty agent can help request documents through the listing agent and organize the questions for the association manager. Your closing attorney can interpret the restrictions and contract; your lender and insurance agent can confirm their requirements.

You can also review how to prepare an offer, return to the Raleigh home-buying steps, or compare homes in Raleigh and the Triangle.