For the past several decades, states have required that housing consumers, buying into a mandatory membership housing association, be provided what is commonly called a “disclosure package.” Some states provide a list of what the package must contain. Much of the information is accurate but confusing and makes little sense. Even some attorneys have a hard time trying to decipher some sections. Realtors and some settlement attorneys shrug off any questions as “you agree to pay so much a month to get trash and snow removed,” where applicable. No bells go off. “HOAs protect property values” has become such a common notion that buyers do not dig any further and accept it on face value. Intuitively that statement makes no sense whatsoever but, absent proof to the contrary, people still believe it.
Leon Robertson joins us On the Commons this week. Professor Robertson, a retired Yale University professor, discovered HOAs like the rest of us, by buying into one and finding out that it was nothing like he expected. Being a professor and very thorough, he started researching HOAs, land records, tracked sales, and wrote a paper titled Correlation of Homeowner Associations and Inferior Property Value Appreciation. After he crunched the numbers and analyzed the research projects, the result was that far from increasing and enhancing property values, HOAs diminished property values. Perhaps, in fairness and honesty, housing consumers should be given a copy of Professor Robertson’s paper before signing on the dotted line.
Based on his experience, Professor Robertson wrote a book called The HOA Murders – A Novel of Suspense. I have it on my kindle and can’t wait to dive into it. Don’t miss the show with Professor Robertson,
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