Beth: Hi, I’m Beth with TB Properties Buys Land. And today I’m going to answer a question that came through our website from someone in North Carolina. Their question was: they have rural vacant land that they would like to sell. However, their property is in a POA. Will TB Properties Buys Land purchase property that’s in a POA?
First of all, thank you for writing into our website and asking that question, but let’s first address, what is a POA, or an HOA? Maybe you’ve heard of this before. An HOA is a homeowners association. A POA is much like the same thing, a property owners association. Basically this is an organization that collects dues most of the time in order to keep up infrastructure like roads, maybe they’ve got power or wells there too that need maintenance. Oftentimes there are CCRs that are involved. Those are covenants, conditions and restrictions, and those restrictions often are in place in order to keep the area valued high, keep it looking good and keep the intent of the founders of that organization alive and well.
There will be a couple of things to find out, or to be aware of. If you’ve got property that you want to sell, the best thing to do is to let us know upfront that it’s in a POA or an HOA. We’re going to find out anyway. A lot of times you’ll find that in the legal description or the title company is going to find that anyways. So just tell us up front that we can take a look at it and get you a good valuation on what we can do when purchasing your property. We’re going to ask you a few things. What are the fees? Oftentimes it’s a once a year fee, sometimes a monthly fee. So we’re going to ask that and are there any special assessments that are ongoing right now? Again, we’ll find that out. Can you send us a copy of the CCRs? Again, those are the covenants, conditions and restrictions, so we can review those. A couple of other things that we’ll ask you are, are you paid up on this? And if you’re not, that might be okay but let us know. The title company will find that anyway, so just let us know in advance so we can work through that.
Those are some of the main things that I wanted to discuss today. The answer to the question is that we do purchase property that is in an HOA or POA, but we do like to review the CCRs and we like to look at the special assessments and what the dues are and consider all of that when we make you an offer. But don’t be afraid to reach out to us. We’re happy to answer any questions that you might have and happy to look at and price your property for you. I will remind you that at TB Properties Buys Land, we always purchase through a title company. By doing so there is protection for both the buyer and the seller. We pay for all the closing costs, including the title insurance and the escrow fees, recording and any kind of excise or, transfer taxes there. We cover that and whatever price that we offer you is the price that you’re going to receive when you receive the check from the title company or the wired funds that come from that title company. So again, please feel free to reach out to us. Give us a shout or shoot us an email. We’d love to hear from you. Thanks again and take care.