Buying in an HOA in Georgia: fees, covenants and the documents to read first
An HOA comes with the house and you cannot opt out. Read its rules and its finances before your due diligence period ends, not after you get the first letter.
What an HOA is in Georgia
A homeowners association manages shared property — entrances, amenities, common areas, sometimes landscaping or exterior maintenance — and enforces the community's recorded covenants. Membership is mandatory when the covenants say so; you agree to it by buying. Condominiums have their own association with similar powers over the building and common elements.
Many Georgia communities are governed under the Georgia Property Owners' Association Act or the Georgia Condominium Act. Under those laws, unpaid assessments can become a lien on the home, so dues are not optional bills.
The documents to request
Ask for these the day your offer is accepted, because you need time to read them inside your due diligence period.
- Declaration of covenants (or condominium declaration) — what you can and cannot do with the property.
- Bylaws — how the board is elected and how decisions are made.
- Rules and regulations — the day-to-day rules: parking, trash, pets, fences, exterior colors.
- Current budget and recent financial statements — what the dues pay for.
- Reserve study or reserve balance — whether there is money saved for roofs, roads, pools and other big repairs.
- Board meeting minutes — the best place to learn about disputes, lawsuits or upcoming projects.
- Any pending or planned special assessments.
- The master insurance policy — especially for condos and townhomes with shared roofs or walls.
The costs beyond monthly dues
Your closing attorney will usually confirm the account is current at closing. The contract and your negotiation decide who pays which of these.
| Cost | What it is |
|---|---|
| Regular dues | Monthly, quarterly or annual assessments for the community's budget. |
| Initiation or capital contribution | A one-time charge some communities collect from each new buyer at closing. |
| Transfer or statement fee | Charged to produce the account statement or process the sale; the contract decides who pays. |
| Special assessment | A one-time charge for a major repair or shortfall; check whether one is pending. |
| Fines | Charged for covenant violations, which can attach to the home. |
Covenants that commonly surprise buyers
- Rental restrictions — caps on the number of rentals, minimum lease terms or outright bans. Matters if you might ever rent the home out.
- Architectural review — approval needed for fences, sheds, paint colors, solar panels or additions.
- Vehicle and parking rules — boats, work trucks, RVs or street parking.
- Home business limits.
- Pet limits — number, size or breed.
Condos and townhomes: a few extra checks
For condos, the association's finances are part of your loan approval. FHA and VA loans require the condo project to meet their approval rules, and conventional lenders review the project too. Ask your lender early whether the building qualifies. Check what the master insurance policy covers versus what your own HO-6 policy must cover — see homeowners insurance. In a townhome, find out whether the HOA or the owner is responsible for roofs and exteriors.
Who to call, and what to ask them
Most Georgia HOAs are run by a volunteer board with a professional management company handling dues, records and violations. The management company is usually where documents come from; your closing attorney will request an account statement showing dues are current before closing. Ask the manager or a board member:
- Are any special assessments planned or being discussed?
- When were dues last raised, and is an increase expected next year?
- Is the association involved in any lawsuits?
- What share of owners are behind on dues?
- Is there a reserve study, and how recent is it?
- Are there open violations on this property — an unapproved fence, shed or paint color — that you would inherit?
- What does it cost, and how long does it take, to get architectural approval for changes?
A worked example: reading an HOA budget
Say a 20-year-old townhome community has dues that look low compared with nearby communities. The budget shows nearly all of the money going to landscaping, insurance and management, with a small line for reserves, and the reserve balance is thin. The minutes mention roofs reaching the end of their life. In that community, low dues are a warning, not a bargain: the money for roofs has to come from somewhere, usually a special assessment or a sharp dues increase. A buyer would ask whether roofs are the association's or the owner's responsibility, whether a reserve study exists, and whether an assessment has been discussed — and price the offer, or negotiate a credit, accordingly.
Red flags
- Little or no reserve fund for an older community.
- A recent or pending special assessment.
- Litigation involving the association.
- A high share of owners behind on dues.
- Minutes full of disputes over the same unresolved problem.
Common questions
Can I get out of paying HOA fees in Georgia?
Not if the covenants make membership mandatory. Unpaid assessments can become a lien on the home under Georgia's association laws.
Who pays HOA transfer and initiation fees?
Whoever the purchase contract says. These are negotiable, so raise them in your offer.
Can an HOA stop me from renting my house?
If the covenants include rental restrictions, yes. Read the declaration and any amendments before your due diligence period ends.
How do I find out if a home has an HOA?
The listing usually says, and the seller's disclosure should too. Your agent and closing attorney will confirm, and the recorded covenants are public.
Will my lender review the HOA?
For condos, yes — the project often has to meet loan program approval rules. For single-family homes the lender mostly cares that dues are included in your budget.
Read next
General information for Georgia home buyers, not legal, tax or lending advice. Loan programs, rates, limits, tax rates and insurance terms are set by lenders, agencies, counties and insurers and change — confirm current figures with them, and have your closing attorney review anything you sign.