Home Buying in 85253>Question Details

Gary, Home Buyer in Paradise Valley, AZ

If I were the only owner in a 7 luxury home enclave in a HOA, would I or could be held responsible for picking up the slack for HOA fees, etc.?

Asked by Gary, Paradise Valley, AZ Sun May 9, 2010

It's a new enclave with only 2 of the 7 homes completed. If I were to purchase, I'd be the only home owner there as of now. I know HOA's have budgets, etc. Who would pay the other fees assessed on the remaining properties?

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Gary, the answer lies in the CC&R's, budget and bylaws of the HOA, along with the developer's (assuming its a recent development) appointed reserve funds. The seller has to disclose to the buyer these HOA documents and the buyer can reject the home based on these documents within 5 days (of signing). The buyer can then get their earnest money back within that time frame if its purchased using a standard Arizona Association of Real Estate purchase contract and HOA addendum.

If it is on a builders contract the buyers rights will vary. It is best to work with a competent Realtor who can guide you through this and lookout for your best interests even if you are dealing with a builder. The sales agent at a model home represents the builder, not the buyer.
0 votes Thank Flag Link Tue Jun 7, 2011
Gary~
You'll have to look at the HOA governing documents and know what it states for homeowners. Who governs the HOA at this time? Get in communication with them to verify reserves, ability to perform, and consequences until the community is sold out and fully contributing.
Laura Myers
Keller Williams Arizona Realty
0 votes Thank Flag Link Sat Sep 25, 2010
Gary,

What does the builder say? I am assuming that the builder still owns the development and is building and selling the homes.

If bank owned, different scenario.

If there is an HOA and you are the only one paying into it, there will not be enough money to perform the responsibilities of the HOA.

Too many possibilities to respond with a thoughtful answer.
0 votes Thank Flag Link Sun May 9, 2010
I think it would depend on how the HOA is set up to run. If you are the only owner until the remaining homes are completed, typically the builder would be managing the HOA. I would ask them how it is arranged.
Web Reference: http://www.jameswehner.com
0 votes Thank Flag Link Sun May 9, 2010
Is the HOA professionally managed? You would be paying the HOA fees for the properties you buy, the owners of the other properties would be responsible for the remaining lots. That said, if the other properties are bank owned, the HOA probably would have a hard time performing, thus you may not get what you pay for from the HOA
0 votes Thank Flag Link Sun May 9, 2010
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