First and foremost, find out who the developer is. The builder on the sign may not own the development. It is highly likely that the land is owned by a developer who is selling lots to the builder. If this is the case find out who the developer is and verify that they are financially sound?
Those great looking entrance features, manicured common areas and community amenities are the responsibility of the developer until the majority of the development is completed. You have probably seen the entrance looking beautiful and the rest of the commuinity looks like a dust bow. Don’t be one of the people miserable that no one else is building or worse, a new developer has decided to build less expensive homes. This will kill your homes value!
Ask to see a copy of the Covenants, Conditions and Restrictions. These are the “laws” of the community that dictate everything from changing the color of your home and putting up a fence, to parking certain types of vehicles on your property. A violation of the CCR’s may subject the homeowner to fines or even liens against the property. Read these thoroughly, ask questions and make sure you can do the things you want .
If amenities are planned but are not yet completed, be sure to ask when they will be finished. This comes back to the developer running of money and never getting to this part of the community. In some cases developers are required to post a completion bond on planned amenities, which is like an insurance policy for the homeowners that insure amenities will be completed if the developer does not have the means to do so.
Check the financial condition of the HOA. Did you know you are allowed to ask the community rep for a current copy of the HOA financial statement. This is one that almost no one ever does! The law requires builders to provide this to you when you are ready to sign a contract. You can also check local government web sites to see if there are any liens, lawsuits or judgments filed against the HOA. If any of the above has been filed, your dues could be affected if judgments are filed even if it is prior to you ever living in the development.
Your Carolina Living Real Estate agents can assist you with this entire process and these are some of the reasons we don’t believe you should go it alone.
