The short answer
Ask for the full set of HOA documents and read them before you sign: the CC&Rs, bylaws, rules, design guidelines, budget, reserve study and recent meeting minutes. They tell you what you can build, what you will pay and how the association is run. At Tennessee National on Watts Bar Lake in Loudon, Tennessee, the land consultant can point you to the current set.
Key facts
- The core HOA documents are the CC&Rs, bylaws, rules, design guidelines, budget, reserve study and meeting minutes.
- CC&Rs are generally recorded against each lot and bind each owner.
- Homes at Tennessee National go through design review.
- There is no deadline to build after you buy a homesite at Tennessee National.
- At Tennessee National, golf membership questions go to the club.
- Watts Bar Lake is a TVA reservoir. Docks and other shoreline construction need a TVA permit.
The homesite is picked. The view is right. Then a stack of HOA documents lands in your inbox, and most buyers skim for the fee and sign.
That is a mistake in any community, and an easy one to avoid. The documents tell you what you can build, what you will pay, what the association owns and how well it is run. Reading them takes an evening. Here is what to look for, with Tennessee National, the private, gated community on Watts Bar Lake in Loudon, Tennessee, as the example.
This is general information, not legal advice. A Tennessee real estate attorney can read the documents with you.
Which HOA documents should you ask for?
Ask for the full set, not a summary.
| Document | What it is | What to look for |
|---|---|---|
| CC&Rs (covenants, conditions and restrictions) | The master rulebook, recorded against every lot | Use rules, building rules, how dues are set and raised |
| Bylaws | How the association runs | Who sits on the board, how votes work, who controls the board today |
| Rules and regulations | Day-to-day policies | Parking, pets, golf carts, rentals, noise |
| Design guidelines | What can be built and how plans are reviewed | What you submit, who reviews it, what it costs |
| Budget and financial statements | Where the money goes | Whether income covers expenses |
| Reserve study | The plan for big repairs | Whether money is being set aside |
| Meeting minutes | What the board is dealing with | Pending repairs, disputes, talk of fee changes |
If a seller or an association cannot produce these, that is information too.
What do the CC&Rs tell you?
The CC&Rs answer four questions.
What can I build? The CC&Rs and the design guidelines usually cover sizes, materials, setbacks and what needs approval. This is where you learn whether the house in your head fits the homesite you are buying.
When do I have to build? Some communities set a deadline. Tennessee National does not. There is no deadline to build after you buy a homesite. Find that in the documents anyway, so you have the rule in writing.
What can I do with the property? Rental limits, home business rules, guest policies, and boat and trailer storage usually live here. If you plan to rent the home, host long visits or park a boat at the house, read these sections twice.
What can the association charge me? Look for how regular dues are set, how they can be raised, and whether a special assessment needs an owner vote.
What should you look for in the budget and reserves?
Look for two things: whether dues cover the costs, and whether money is set aside for big repairs.
A fee only means something next to the budget behind it. A low fee with no reserves is a bill that has been put off. Gates, roads, landscaping and shared buildings all wear out. Ask whether there is a reserve study and how well it is funded.
Then read the minutes. A few meetings' worth will show you what the board argues about, what repairs are coming and whether owners show up.
We do not print Tennessee National's dues or what they cover in this post. The current budget is the source, and it changes. Ask the land consultant for it. Pricing is in the info pack.
What is not in the HOA documents?
Three things usually sit outside them.
- The club. Golf and club membership have their own terms. At Tennessee National, golf membership questions go to the club. See golf.
- The marina. Boat slips usually have their own agreement. Ask the marina. See marina and lake life.
- The shoreline. Watts Bar Lake is a TVA reservoir, and TVA requires a permit for docks and other shoreline construction. That is separate from any HOA rule.
So ask one plain question early: which costs are HOA, and which are club, golf or marina? Get the answer as a list.
How does design review work?
Design review is the step where the community checks your house plans against its guidelines before you build. Homes at Tennessee National go through design review.
The guidelines should tell you:
- What you submit, and at what stage
- Who reviews it
- What happens if the plans need changes
- Whether any fees or deposits apply
- Whether there are requirements for builders
We do not summarize the rules here, because the current design guidelines are the source. Take them to your architect and builder before you sign a design contract. It costs far less to design inside the rules than to redraw after a review.
The guidelines affect the land too. How to read a lot survey explains setbacks and easements.
Who should read the documents with you?
More than one person, each for their own part.
- A real estate attorney for anything unclear in the covenants.
- Your builder or architect for the design guidelines.
- Your insurance agent for what the association insures and what you must insure yourself.
- Your lender, who may ask for the HOA documents anyway.
Build time for this into your contract. Making an offer on a lot explains how an HOA document contingency works.
A one-evening checklist
- Confirm the current dues and how they can change.
- Read the budget. What do the dues cover?
- Ask for the reserve study.
- Read the last few sets of minutes.
- Read the use rules that touch your plans: rentals, guests, boats, carts, pets.
- Take the design guidelines to your builder.
- Find the build deadline rule in writing.
- List which costs are HOA and which are club, golf or marina.
For the wider view of a community, see how to vet a master-planned community.
The honest part
HOA documents are dull, and they bind you. A rule that stops your neighbor from doing something stops you too. Standards protect the look of a place and limit your freedom in the same sentence.
If you find a rule you cannot live with, be glad you found it now. And if something you were told is not in the documents, do not count on it.
Frequently asked questions
What are CC&Rs?
CC&Rs are covenants, conditions and restrictions. They are the recorded rules for a planned community, covering how property can be used, what can be built and how dues are set. CC&Rs bind every owner, so read them before you buy at Tennessee National or anywhere else.
Does Tennessee National have an HOA?
Yes. Tennessee National is a private, gated community on Watts Bar Lake with an HOA and a design review process. The current dues and what they cover are in the HOA budget and documents. Ask the land consultant for the current set. Pricing is in the info pack.
Is there a build deadline in Tennessee National's rules?
No. There is no deadline to build after you buy a homesite at Tennessee National. You can hold the land and build when you are ready. Ask to see that rule in the recorded documents so you have it in writing.
Can you rent out a home at Tennessee National?
Whether and how a home can be rented is a question for the HOA documents, and this post does not publish them. If renting a Tennessee National home is part of your plan, ask for the current documents before you make an offer, and have an attorney confirm what they allow.
Who approves house plans at Tennessee National?
House plans at Tennessee National go through design review. The current design guidelines should explain what to submit and who reviews the plans. Ask the land consultant for the guidelines, and give them to your architect and builder before design work starts.
Facts about Tennessee National come from the community. Lake facts come from TVA. Rules, taxes, loans and insurance change, so confirm anything that affects a purchase with the right office or professional before you buy.