Now that you are venturing into the world of becoming a homeowner, pretty soon you will start to hear talk about homeowner's associations. You might have some questions, or you may not be totally sure exactly what power a homeowner's association may have. Today we are going to explore this topic, and hope to clear up some misconceptions.

A Homeowner's Association is a legal entity formed to govern rules about common property areas. They are usually not for profit groups. The members of a Homeowner's Association (or HOA) are the people who own property in a certain area. If you live in a townhome or condominium community, you will usually find a HOA. They are also very popular in new single family neighborhood developments.

HOA's make the rules regarding what can and can not take place in a neighborhood. They have the authority to enforce deed restrictions, and they control what you can and can not do on propery (even if you own it) that is located in that neighborhood. HOA's can have a lot of influence and power in a community.

When you are planning on becoming a resident in a HOA controlled community, you will receive a packet of information with all of the rules, regulations etc. This packet is known as a CC&R (Covanents, Conditions, and Restrictions). This CC&R will explain to you all of the rules and regulations.If you don't like something in the CC&R, it can be very difficult, if not impossible, to get it changed.

You will be expected to pay monthly or yearly dues as a member of the HOA. Fees can vary from small amounts, to outrageous ones. Some HOA's charge more than $300 per month! The fees that you pay will be used to upkeep community property, such as pools, golf courses, etc.

Along with paying a membership fee to be part of the HOA, the HOA will also govern and regulate what exactly can and can not take place on a property. Some of the most common things that HOA's regulate are:

• Exterior Paint Colors (usually grey, white, browns)
• Type of Shingles Used on Houses
• Control of Trash/Debris
• Pools
• Basketball Hoops, Recreational PlayThings
• TreeHouses
• BackYard Play Houses
• Trees
• Weeds, Plants, Gardens
• Lawn Care
• Trash Cans
• Recreational Vehicles
• Where You Can Park
• Window Coverings Seen From The Street
• Pets
• Garages/Sheds
• TV Antennas
• Clotheslines
• Yard Sales
• Mailboxes
• Outdoor Lighting

As you can see, HOA's can control many aspects of daily life, so it is important to decide whether or not you can live within the restrictions that they impose before deciding whether or not to buy. The goal of the HOA is to make life pleasant for all residents, but those that are not able to conform to the rules of HOAs may not find the experience pleasant. There is a lot of love/hate relationships with HOA's in America. Some people appreciate that they keep neighborhoods clean and tidy and help to keep up the value of surrounding homes. Other people find them to be too restrictive and overbearing. There are a lot of things to consider when determining whether or not you want to live in an area with a HOA. A trusted real estate agent like Hamid Ali can help you decide what the right choice is for you.

A title contingency is a common stipulation in a home buying agreement that allows the buyer to back out of the sale without penalty if there is a problem or issue with the title to the property. Title contingencies are very commonplace, and all Purchase and Sale agreements in Washington State are contingent upon the buyer receiving a clean title. This would only make sense, wouldn't it? The buyer has the right to know that the property they are buying is free from any title issues. The buyer also has the right to make sure that the seller has the legal right to sell the property and that they are the legal owners.This contingency is mostly to provide a peace of mind and protection for the buyer.

The process of a title contingency is pretty simple and straightforward. Within a week of coming to a mutual agreement, the buyer will be presented with a preliminary title report from a title insurance company. In this title report, there will be a list of any discrepancies or issues with the title. There will be details about any parties that may have a lien on the property. The title report will also list any issues or items that need to be cleared from the title before a new owner can take possession of the property. The title report will also list any easements or encroachments on the property.This is a good way for the buyer to make sure that they will have full accessibility to the entire property.

After the title report is issued, the buyer will have some time to review the report and talk with the title company or agent about any issues that the report might have found. The title agent should also be able to answer any questions that you might have about what they found in the report, if you should have them. If there are any major issues with the title that need to be cleared up before closing, you can let the seller and the title company know.Your agent might want to write up a letter to send to the seller's agent. The title company and the seller's agent will usually work together address any issues that might be a problem. The seller will have until closing to handle all of the problems and issues listed on the title report. If the issues on the report are not resolved by closing, then the agreement is null and void.

As you can see, a title contingency is a very logical contingency to have when buying a home. It offers the buyer a form of protection that they might not otherwise have. When a title contingency is in place, the buyer can rest assured that the home can be legally and easily passed on to them at closing. If you have any questions or concerns about a title contingency, contact a knowledgeable real estate agent like Hamid Ali today!

Don't run away! I know the title of this post is confusing, and may not make much sense to some of you right now. But, we are going to tackle this topic together and make sense of it all today! Since buying a home is such a big and often final purchase, sometimes you can set up some ground rules for the process. You might want to set up certain conditions under which you will buy the home. "I will only buy this home if... it passes an inspection." Or "I will only buy this home if I can sell my current home within 90 days." These "conditions" or "rules" that you set are called contingencies. Today we are going to go over a few of the most common kinds of contingencies in Washington real estate contracts today.

Inspection Contingency

This is probably the most common contingency, and for good reason. Most sellers and buyers can mutually agree that the buyer be allowed at least one inspection prior to the purchase of the home. This is a good rule so that they buyer can back out of the deal without penalty if for some reason there is something found to be at fault with the home.

Financing Contingency

This is also a common one. Most every single home sale contract is contingent upon the buyer being able to secure the financing required to purchase the property. Usually contingencies of this nature give the buyer a period of time between signing and closing in which to secure the financing. You can set the contingency to specifically what type of financing or interest rate you are willing to accept. Of course, if you are paying cash for your property, you won't need to worry about this type of contingency.

Title Contingency

This particular contingency is very common and very important for the buyer. If the seller can not produce a title to the property, they can not legally sell it to you. Therefore, a contingency based upon production of a valid legal title can protect you from buying a house that you were never really allowed to buy. A title contingency can also clear up any issues with the title and make sure that you will be the full, complete and sole owner of the property. Make sure that a title report is a contingency in your home contract for sure.

The three contingencies listed above are by far the most common. However, there are hundreds if not thousands more contingencies that can be used in a real estate contract. There can be contingencies for termites and other pests, as well as for lead based paints. There are contingencies specifying what type of deed the seller must present at closing. Radon Testing and Mold Inspection contingencies are also frequently requested. There are tons of other contingencies, including sewer inspections, private well inspections, and homeowner's association contingencies. Insurance contingencies are also pretty commonplace these days. As you can see, the types of contingencies are many and varied. With a trusted real estate agent like Hamid Ali, you will be able to sift through all of these types and decide on whether or not you want a contingency included in your contract.

The key difference between a home appraisal and a home inspection is that the appraisal is designed to protect the lender’s collateral, while a home inspection is designed to protect the buyer from maintenance issues that they weren't aware of.

Here is a more detailed description of these two steps in buying a home.

The Home Appraisal

An appraisal is required by a bank in order for you to get a mortgage. A not-so-funny trick is that the appraisal is required by the bank, but paid for by you. The appraisal is done so the bank can make sure that the home is as described and that the purchase price is comparable to other homes in the area.

The appraiser operates as an independent third party. They will come to the home to take measurements to estimate its size and take some photos. They will also look for obvious defects while they are there. Some loans have more strict requirements for inspections.

They will also visit homes that are nearby that they see as similar. They will research recent sales for homes that have a similar layout and value.

The appraiser will submit a report to the bank that lists an estimated value price. If this value price is less than the mortgage amount requested, the bank will reduce the amount of money they are willing to loan.

How to stay out of trouble with the home appraisal:

• The first thing is to make sure that you have already done your research about home prices in the area. If the house that you are looking is unusually high priced for the neighborhood, it needs to have some significant advantages over the other houses around it.
• The second thing to do is to do your own price comparisons. Your real estate agent can help you to find similar homes to make sure that you are paying a fair price (and therefore asking for a fair mortgage) for the area.

The Home Inspection

A licensed home inspector will perform an inspection to find items that need repairing, maintenance that needs to be done as well as any issues that may be there with the home.

As opposed to an appraisal may take 15-30 minutes and home inspection usually take over 3 hours. Nothing is off limits.

The home inspector will look at everything from the foundation to the attic. He or she will check the wood for termites, the appliances for age and wear and the windows for energy efficiency.

The goal of a home inspection is to not have any surprises. Most home inspectors are insured (hire one that is) and, if they missed something major, their insurance will pay to have it corrected.

Sometimes, during the purchasing process, you might hear the seller or the other realtor say things like, “The owner is a contractor so there’s nothing to worry about.” No matter what else you do, hire a licensed, competent home inspector to make sure you aren’t buying a money pit.

In addition to a general home inspection you may also want to hire a specialist if you have a specific concern. People like a heating company to look at the furnace, plumbers for the piping or an electrician for the wiring can save you a lot of pain and money later. Your real estate agent will have the names of people you can call.

Even though a home inspection or the help of specialists is as optional as having a mechanic look at a used car before you buy it, it is money well spent and as they say “an ounce of prevention is worth a pound of cure.”