July 1st, 2008
Homeowners Associations - Friend Or Foe?
When a real estate developer begins work on a new neighborhood site, they frequently choose to establish a Homeowner’s Association, also known as an HOA. An HOA is a legal entity, much like a non-profit corporation, which manages the neighborhood and enforce the covenants, conditions, and restrictions of the area. Once a developer sells a certain number of homes in its neighborhood, it can transfer legal ownership of the neighborhood to the HOA, essentially absolving itself of any responsibility for the management of the neighborhood.