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September 8, 2022
Who Pays Overdue HOA Fees at Closing?
If you’re planning to sell a property that is part of a homeowners association, you’ll need to consider a few things. The HOA is an important part of the community, as it directly influences quality of life within the neighborhood. HOAs enforce rules in a subdivision, maintain grounds and manage recreational facilities.
In exchange for taking care of a community, residents pay their HOA a fee each month. Average fees are around $350 a year, though this can vary widely depending on where you live, the size of the community and the responsibilities of your HOA. When it comes time to sell your property, your HOA fees will need to be paid up. If they’re not, this will make it more difficult to sell.
Because many communities throughout MD, VA and Washington DC are part of an association, it’s important to know about these fees, what happens if you don’t pay them and whose responsibility they are at closing.
What are Homeowners Association Fees?
HOA fees, association dues, HOA assessments, etc. are all fees that homeowners must pay to the association for the services it provides. Only those who live in a homeowners association pay these dues. Whether you plan to buy or sell a house in an HOA, it’s important that you understand how these fees work.
Here are some of the amenities that HOAs typically cover:
- Maintenance services
- Common area utilities
- Security expenses
- Insurance premiums
- Property management
- Grounds management
- Gyms, lounges and pools
- Parks, playgrounds and trails
What Happens if You Don’t Pay HOA Fees?
Each household is responsible for paying their HOA fees on time. If people stop paying, this will affect your community as a whole. Your HOA won’t meet its budget, and this can cause your neighborhood to degrade. For example, your swimming pool or playground might not get repaired.
Fortunately, HOAs usually don’t sit around and wait for this to happen. They fine homeowners and may even put a lien on the property. Even lawsuits are possible. This is why it’s important that you pay your HOA bill each month.
In fact, any remaining HOA debt is your personal liability. In most cases, you won’t be able to sell your property until the debt is cleared. Usually, this means using the money from your sale to pay the overdue fees. If the issue isn’t resolved before closing, the HOA can still attempt to collect their debts.
Sell Your House – Even with Overdue HOA Fees
If you’re planning to sell your home in MD, VA or Washington DC, 4 Brothers Buy Houses can help. We have solutions for all types of real estate problems, including outstanding HOA fees.
Because we pay cash for houses, you can use the cash from your sale to pay off these debts and walk away from your property free and clear. To discuss your options for selling a house with HOA debt, contact 4 Brothers Buy Houses today.