What is a HOA (Home Owners Association) ?
The Alberta Real Estate Board defines it as:
A Home Owners Association (HOA) is created by the developer of a community. Functions vary, but many HOA’s monitor architectural guidelines or provide maintenance services for the amenities the municipality will not maintain.
More and more communities are beginning to adopt an HOA. It is important to know if where you are buying will have an HOA because there is a fee that comes with it (Although normally quite nominal ~ $100/year). Nevertheless, the best way to tell if a community has a HOA is to get your Realtor to pull title on the property you are interested in purchasing. If there is one, there will be an encumbrance on the home listed right on the certificate.
I generally hear mixed reviews from clients with regard to having a Home Owners Association. Communities with a HOA have higher aesthetic appeal due to the restrictive architectural guidelines. However you could be subjected to uncontested fee increases and may need to seek approval for any additions/changes to your property. Either way is important to have your Realtor do the research to determine how a HOA may or may effect you and your new home.
