Are you looking to purchase in a Shared Ownership Community?
A shared ownership community is one where the owners not only have a deed for the property that they own, but share ownership in common areas of their community as either common property or as part of a corporation. Individuals who are considering purchasing in such a community NEED to know that most have DEED Restrictions which may hold your creative side hostage to rules and regulations.
When you sign the purchase contract for a home in a community, check the contract for any additions which state that you are buying in an Home Owners Association(HOA), A Condominium Association, Cooperative, or a Community Development District(CDD). In purchasing in any of these shared owner developments, regardless of what the neighborhood appears to be, you may be limiting yourself in your ownership rights just by signing that contract. Your REALTOR should explain to you that you are buying in a Deed Restricted community, Condominium, or a Cooperative and what that means. More often than not, they don't know. It is important for you, the buyer, to read ALL of the documents that are presented to you for signature before you sign and that you employ a real estate attorney for any areas that you do not understand and that your REALTOR cannot explain.
Many states allow Community Associations to approve purchases, architectural changes, colors, interior renovations, and decorations within their communities. In purchasing, you have agreed to abide by the rules which may restrict your lifestyle while you reside in that community just by signing the sale contract.
Further, most, if not all, of these communities require you to pay fees for maintenance of common areas and amenities. Whether or not you choose to use these items does not make a difference in the monthly, quarterly, or annual fees you may have to pay!
There are some things that you as a buyer can do to make it easier to understand what you are buying:
- 1. Request a copy of the Declaration of Covenants Conditions and Restrictions or Declaration of Condominium or Cooperative.
2. Make certain to read, not only the declaration but the rules and regulations of the community so that you can know what changes you can and cannot make to your property.
3. Ask for a description of what you own and what the association owns so that you are not improving or using someone elses property.
4. Ask for the fees and if there are other fees for any Master Association (PUD), or additional lease fees for the community.
It is important for you, as a buyer, to know what you are purchasing and what restrictions may be placed upon your purchase before you close on your property! If you can, choose a REALTOR who has skills in Shared Ownership Communities when you begin your home search. That way you will have an expert available to answer your questions before you purchase!
