HOA Fees & US Property Tax

Checking all those peripheral fees and charges.....

The title agent (like our Settlement agent in Australia) didn't send me enough information! I won't be signing a contract today until she sends me the HOA Disclosure Summary.

Home Owner Association (HOA) fees are something to look into before buying an apartment/condo. They are the equivalent to our Body Corporate fees in Australia. It's really important to make sure you have a copy of the property's HOA Disclosure Summary. This will give you the details of your costs in the upkeep of the property. HOA fees in America generally cover outside building and garden maintenance, and any other common area maintenance (club house, pool etc). They usually also cover building insurance, but not your internal building insurance (personal property, liability etc - which is another cost to look into). Although the current owner has told me what the HOA fees are, I'm not trusting that - I definitely need a copy of that disclosure summary.

Another yearly fee will be property tax (equivalent to our rates). The property tax paid the year before purchase may not be the same in the next year. A change of ownership or property improvements triggers reassessments on the property that could result in higher property taxes. The County Appraiser's Office deals with valuations so that's my next stop - to check the rate of taxes for next year.

I have engaged a professional property inspector, who will check all the electrics, plumbing, building etc. The cost of that service will be $300.