You've shopped around, found the perfect home, at the perfect price. Everything looks good. And then you find out that if you live there, you'll be part of a homeowner's association. You've heard the horror stories. Heard the jokes. Is this really something you want to get involved with? Are you going to be tarred and feathered for having the wrong color garbage bin? Or for having a garbage bin at all? What are the pros and cons of living in a community governed by a homeowner's association or HOA?

** You Pay to Be a Member **

If you buy a home in a neighborhood governed by an HOA, you agree to be a member regardless of your feelings about the group. You will pay dues, either monthly or annually. The HOA is generally a non-profit organization, with dues going toward the maintenance and care of common areas or other neighborhood services. Often an HOA will function in tandem with a professional management company, but that depends on the size of the neighborhood involved. In some small townhome communities, residents elect the HOA president, officers, and board of directors from within their own ranks and these individuals fulfill the management functions.

** The Pluses of Living with an HOA **

Communities, regardless of size, that are governed by an HOA tend to have common amenities for residents like tennis courts, playgrounds, swimming pools, and club houses for the enjoyment of all the members. They may also provide community services, like lawn care. (This is more common in townhome and condo communities than in residential neighborhoods.)

The HOA will also act as a go-between in the inevitable neighbor disputes and, by the terms of its covenant, will be the "last word" in such exchanges. Essentially the HOA preserves a conformity of appearance in the community and, to a degree, conformity in neighbor-to-neighbor behavior. This can be extremely helpful in issues of noise problems or disputes over property lines and home-based "projects." An HOA is not going to stand for your "do-it-yourself" neighbor erecting a homemade wind turbine whose blades are whooshing right outside your upstairs bedroom window.

** The Minuses of Living with an HOA **

The very enforcement of conformity that arguably enhances the appearance of the neighborhood and maintains or raises property values can feel like a noose around the neck of more independent, free-spirited residents. These are the people who do not want anyone measuring the height of their grass or telling them the size of dog they can or can't have for a family pet.

Most HOAs don't allow properties under their administration to be rented, or, if they do, they might require a screening of the potential tenants and may set a time for them to move in or a length of time they may remain. In some extreme cases, HOAs will also require a screening of new purchasers, which can seriously hinder the progress of a sale. These are potential stipulations that should be fully understood in advance.

If due are not paid or if there's a major infraction of the "rules" and a member is judged to be non-compliant, an HOA can place a lien on that member’s home or even force a foreclosure. Should such a dispute go to court and if the member loses, they will most likely be required to pay the HOA's legal fees in the action. Again, these are aspects of any HOA membership that should be understood in advance and carefully contemplated.

** If You Are Consider a Home with an HOA Do Your Research **

Never lightly enter into a homeowner's association membership. Get a copy of the HOAs rules and read them, marking and investigating passages you don't understand. Do the same with any additional regulations or by-laws the group may have. If possible, ask to see copies of the HOA's latest financial report and / or a copy of its most recent meeting and / or board meeting. This may give you a sense of the tone of the group and the kinds of issues it routinely considers.

People with a very strong sense of privacy and who do not like anyone or anything "in their business" might be best advised to steer away from an HOA. These associations can be a tremendous assets when they are well run and with a good spirit, or they can be a living nightmare. Those stories on the news have to come from somewhere. Do not simply assume that because you get along well with people, you can get along well with an HOA. It's not the same thing at all!