Research required before buying a home

Q: Bought a town house six months ago, after a yearlong search. It’s a 25-year-old community with charm. Worked very hard to make a large down payment with the idea of paying it off and retiring.

The roof leaked. Turns out most roofs here do leak and/or have had leaks. The homeowners association sends their roof repairman to patch them.

I paid list price to buy a unit touching a greenbelt. The HOA newsletter said all the grass is being removed this summer.

I cannot stop crying as I feel so betrayed. During the purchase process, I received two letters from the management company. One stated no known outstanding lawsuits and one stated no known issues. Shouldn’t all of this have been part of the disclosure?

The HOA knows very much how I feel. I have been to board meetings and I get three minutes after the meeting to talk. My neighbors who have been here 12 years and my other neighbor who has been here eight years told me they stopped going because “the board doesn’t care.”

A: When buyers are in escrow to purchase a home, there is a due-diligent period that allows the buyers to investigate all aspects of the home before consummating the sale. Buyers have the right to inspect the home.

If you are planning to buy a home, and especially one that is 25 years old, you absolutely need professional opinions about the plumbing and about the condition of the roof. These are the two most common expenses a homeowner will spend for older homes.

The buyer should receive a proposed HOA operating budget, as well as a current financial statement. The budget would indicate the capital expenses. Reviewing the financial statements provides a picture of the expenses. In addition, the association is required to include a summary of the reserve study. This would also be an indicator of the association’s capital expenses.

Buyers need to look at these financial statements and ask questions to understand what their responsibility may be as to association fees and expenses not included in the association fees.

In a town house, the buyer could very well be responsible for the maintenance and or replacement of the roof. When a buyer receives copies of the governing documents, it can be, and often is, overwhelming. If nothing else, you need to review the sections pertaining to maintenance. Most covenants will have two sections, one pertains to the maintenance responsibilities of the homeowner and the second the association’s responsibilities. By reviewing these sections, a buyer would know in advance if the repairs and or replacement of the roof is their responsibility or that of the association.

You have indicated that you received a couple of letters during the purchase period. If that is truly the case, you need to check with your real estate agent or the escrow officer, as many of the problem issues you have described are required to be disclosed by state law. You may have some legal recourse for not receiving these documents.

As to the conversion from greenbelt to drought-tolerant landscape, this information may not have been available at the time of purchase because the board may not have made a decision on it.

There is only so much the laws can do to help protect buyers. The buyer has to accept responsibility when they purchase a home.

Barbara Holland, certified property manager, broker and supervisory certified association manager, is president and owner of H&L Realty and Management Co. Questions may be sent to the Association Q&A, P.O. Box 7440, Las Vegas, NV 89125. Fax is 702-385-3759, email is support@hlrealty.com.