Reply to What’s the worst/most expensive thing you’ve discovered was wrong after closing?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I thought I bought a townhouse but it was a condo. They only used the word condo in the legal paperwork. Of course it’s obvious to me now. [/quote]

I’m a transactional real estate attorney.  I used the draft condo and hoa association docs.  An HOA is legally a condominium turned sideways.  They are effectively indistinguishable.  What do you think is different about the two?[/quote]

Is there a difference in what the master insurance policy covers? I know our condo townhouse the exterior structure is covered by the master and our personal policy is studs in. Is that how it is for an HOA?[/quote]

No, in a Homeowner's Association, the fee simple owner is responsible for the entire structure up to the middle of any party wall diving the housing units. They are responsible for their homeowner's insurance, and the HOA generally has insurance on common areas.  [/quote]
The same can be true of condominium ownership.  Although it isn’t common, you can have condominium ownership with a mix of single family homes and townhouses, where every owner in the community is responsible for structural maintenance and the association is responsible for shared common areas, very much like a HOA.  Within a single development, there might be multiple associations, with the housing type (SFH, TH, two over, etc.) dictating specific association membership.

With fee simple ownership, you “own” the land beneath your home, but, practically speaking, the rights you have under your HOA may be very similar to many condos. HOAs commonly require owners to maintain the existing look and feel of the home and prohibit structural and aesthetic changes that deviate from the community design aesthetic.  As some examples, recorded HOAs and condominium association agreements can both dictate what sorts of vegetation you can grow, whether you can let pets roam outside in a yard, and whether you can install solar panels.

No matter what type of ownership you buy, it is important to review the HOA or condominium association agreements before closing.  Never make assumptions about rights you have.
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