HOA Document Review: Key Considerations Before Buying into a Greenville HOA Community

Finding the perfect home in Greenville, South Carolina, is an exciting journey. You imagine life in the beautiful Upstate, perhaps in a community with a sparkling pool, manicured common areas, and a welcoming neighborhood feel. Many of these desirable communities are governed by a Homeowners Association (HOA). While an HOA can protect property values and provide valuable amenities, it also introduces a layer of legal complexity that many homebuyers are unprepared for.

Before you sign the closing papers, you will be handed a thick stack of documents—the HOA’s governing documents. It can be tempting to glance over them, assuming they contain standard boilerplate language. However, buried within that legalese is a binding contract that will dictate much of how you can live in and on your property. This contract can affect everything from the color you can paint your front door to where you are allowed to park your car. A thorough review of these documents is not just a formality; it is a vital step in protecting your investment and ensuring your new home truly feels like your own.

What Exactly Are HOA Governing Documents?

When you buy a home in an HOA, you are not just buying a piece of real estate; you are automatically becoming a member of a non-profit corporation. This corporation—the HOA—has its own set of rules, and you are agreeing to abide by them. The governing documents are the collection of legal papers that establish the association and outline its powers and restrictions.

Think of it as a private government for your neighborhood. These documents lay out your rights and responsibilities as a member, as well as the duties and authority of the HOA board of directors. They are legally enforceable, and failing to comply can result in fines, liens against your property, or even foreclosure in extreme cases. For this reason, a detailed examination is a key part of your due diligence process.

The Hierarchy of Rules: Which Document Wins in a Conflict?

Not all HOA documents are created equal. They exist in a legal hierarchy, and when there is a conflict between two documents, the one higher up the chain takes precedence. A general understanding of this structure is helpful before diving into the specifics.

• Federal and State Law: The highest authority is always the law, including the South Carolina Homeowners Association Act. No HOA rule can legally violate these statutes.
• Plat or Map: The recorded map of the community that defines the lots and common areas.
• Declaration of Covenants, Conditions, and Restrictions (CC&Rs): This is the foundational document for the community. It is recorded with the Greenville County Register of Deeds and is legally binding on all property owners.
• Articles of Incorporation: The legal document that creates the HOA as a non-profit corporation in South Carolina.
• Bylaws: These documents detail the administrative governance of the HOA corporation—how the board is elected, how meetings are conducted, voting rights, and other operational procedures.
• Rules and Regulations: These are the day-to-day rules adopted by the HOA board. They are typically easier to amend than the CC&Rs or Bylaws and cover things like pool hours, trash can placement, and holiday decoration policies.

If a day-to-day rule about parking, for example, conflicts with a provision in the master CC&Rs, the CC&Rs will almost always control the outcome.

The Heart of the Matter: A Deep Dive into the CC&Rs

The Declaration of Covenants, Conditions, and Restrictions is the most important document you will review. It runs with the land, meaning it is binding not just on you but on all future owners of the property. This is where the most significant restrictions on your property rights are found. Pay close attention to the following areas:

• Property Use Restrictions: This section defines what you can and cannot do with your property. Are there prohibitions against running a home-based business? Are there rules about long-term guests or renting out your property (short-term or long-term)?
• Architectural and Design Controls: This is a major source of conflict in many HOAs. The CC&Rs will outline the process for making any changes to the exterior of your home. This can include paint colors, fences, decks, patios, landscaping changes, sheds, pools, and even playsets. You will likely need to submit plans to an Architectural Review Committee (ARC) for approval before starting any work.
• Maintenance Obligations: The document should clearly state what the HOA is responsible for maintaining (common areas, roads, amenities) and what you are responsible for maintaining. In some townhome communities, the HOA may be responsible for exterior siding, roofing, and lawn care, while in single-family communities, that responsibility is almost always yours.
• Pet Policies: Look for specific rules regarding the number, size, and breed of pets allowed. Are there leash laws within the community? Are there designated pet areas?
• Parking Restrictions: Review rules on where you, your guests, and any additional vehicles can park. Are commercial vehicles, RVs, boats, or trailers prohibited? Are there limitations on parking in your own driveway versus in the garage?
• Nuisance Clauses: These are often vaguely worded clauses that prohibit “noxious or offensive” activities. While seemingly common sense, these can be subjectively enforced and lead to disputes with neighbors or the board.

The Rulebook for the Rulers: Examining the Bylaws

While the CC&Rs govern the property, the Bylaws govern the HOA itself. They provide the framework for how the community association is run. A review of the Bylaws gives you insight into the health and functionality of the organization you are about to join.

Key provisions to look for include:

• Board of Directors: How many members are on the board? What are the qualifications to serve? How long are the terms, and are there term limits?
• Elections and Meetings: The Bylaws dictate how board members are elected and how often membership meetings must be held (usually annually). They will also outline the quorum requirements—the number of members needed to be present to conduct official business.
• Powers and Duties of the Board: This section outlines the board’s authority to enforce the rules, set the budget, collect assessments, and manage the common property.
• Amendment Process: How difficult is it to change the Bylaws or the CC&Rs? A process that requires a supermajority (e.g., 75% of all homeowners) to approve a change provides stability, but can also make it very difficult to fix a bad rule.

Checking the Financial Pulse: Why HOA Finances Matter

An HOA is a business, and its financial health directly impacts you and your property value. A financially unstable HOA can lead to sudden, large special assessments or deferred maintenance that can make the community less desirable. You should request and carefully review the HOA’s key financial documents.

• The Annual Budget: Does the budget seem realistic? Is it fully funded? Look at the line items to see where the money is going. A large portion should be allocated to maintenance, repairs, and contributions to the reserve fund.
• The Reserve Study: This is one of the most important financial documents. A reserve study is an analysis performed by an outside professional that projects the remaining useful life of the community’s major assets (roofs, roads, pools, etc.) and estimates the cost of their future replacement. The study then recommends an annual funding level to ensure the money is there when needed. An HOA with an underfunded reserve is a major red flag, as it almost guarantees a large special assessment in the future.
• Balance Sheet and Income Statement: These documents provide a snapshot of the HOA’s financial position. Look for any large, unexplained expenses or signs of debt.
• History of Special Assessments: Ask if the community has a history of levying special assessments. While a single, well-explained assessment for an unexpected event may be understandable, a history of frequent assessments can signal poor financial management.

Reading Between the Lines: What HOA Meeting Minutes Reveal

The minutes from the past year of HOA board meetings are a treasure trove of information. Official documents tell you what the rules are, but meeting minutes tell you how the community actually lives. They provide a candid look into the culture, challenges, and priorities of the neighborhood.

When reviewing the minutes, look for:

• Common Complaints: Are there recurring issues with parking, pets, noise, or maintenance? This can alert you to potential daily annoyances.
• Upcoming Major Projects: Are there discussions about large capital expenditures, like repaving the roads or replacing the clubhouse roof? If these are not funded in the reserves, it could signal an upcoming special assessment.
• Legal Disputes: Are there mentions of ongoing litigation with homeowners, contractors, or the developer? This can be a sign of deeper issues within the community.
• The General Tone: Do the meetings seem orderly and professional, or are they contentious and full of disputes? The overall tone can tell you a lot about how well your potential neighbors work together.

Your Protections Under the Law: The South Carolina Homeowners Association Act

In South Carolina, HOAs are primarily governed by their own documents. However, the South Carolina Homeowners Association Act provides a baseline of protections for homeowners. For instance, the Act requires that HOAs record their governing documents with the county and make them available to homeowners. It also grants homeowners the right to attend board meetings, speak on designated issues, and access certain financial records. It is important to note that this Act does not regulate every aspect of an HOA’s operation, which makes the specific content of your community’s governing documents all the more important.

Common Red Flags to Watch For in HOA Documents

As you or an attorney review the documents, certain provisions should give you pause. These “red flags” do not necessarily mean you should walk away from the purchase, but they warrant further investigation and consideration.

• Excessive Power in the Developer: In newer communities, the developer often retains control of the HOA board until a certain percentage of homes are sold. Look for language that gives the developer disproportionate voting power or exempts them from paying assessments on unsold lots.
• Vague or Ambiguous Language: Rules that are not clearly defined can be selectively or unfairly enforced. For example, a rule requiring “well-maintained landscaping” is subjective, whereas a rule requiring grass to be kept below six inches is clear.
• Restrictions on Renting: If you are considering the property as a potential rental in the future, be very careful to review any restrictions. Some HOAs cap the number of homes that can be leased or prohibit rentals altogether.
• Right of First Refusal: Some older CC&Rs contain a clause giving the HOA the “right of first refusal,” meaning they have the option to buy your property at the same price a third party has offered. This can complicate and delay a future sale.
• Low Homeowner Participation: Look at the meeting minutes. If the HOA consistently struggles to meet its quorum for annual meetings, it suggests an apathetic or disengaged community, which can make it difficult to conduct business or elect a competent board.

Secure Your Greenville Investment with a Professional Review

Buying a home is the largest financial transaction most people will ever make. When that home is in an HOA community, you are entering into a complex legal relationship that deserves careful attention. The governing documents are a contract, and signing it without a full appreciation of its terms is a significant risk. Having a knowledgeable attorney review the CC&Rs, bylaws, financials, and other key documents can provide clarity and peace of mind.  The legal team at the DeBruin Law Firm has experience assisting homebuyers in Greenville and across the Upstate in navigating the complexities of HOA documents. We are dedicated to ensuring our clients make informed decisions that protect their property rights and financial future.

If you are considering purchasing a home in an HOA community, please contact us at (864) 982-5930 or send a message online to schedule a consultation.