Partywalls vs. HOAs for Townhome Projects
Partywall Management is what separates redT from many different Brokerages in the greater Denver area. We have an excellent team who is here to help whenever they can. But first, we have to highlight what separates a Partywall Agreement from your typical Home Owners Association (HOA).
In every neighborhood, there is an HOA, but when it gets down to shared living such as condominiums or townhomes an HOA is less relevant and Partywall agreements come into place. A partywall agreement is a legal document that lays out how issues that involve another wall (neighbors) will be handled without paying an HOA that would enforce it. By having a partywall agreement in place all those extra fees and hassles are avoidable and you won’t have to spend money that you won’t get back. However, there is still a signed document in place that protects your interests.
When it comes to understanding if you fall under an HOA or a Partywall Agreement, that is usually up to the developers, who must overlook the liability and legal requirements to establish a Partywall Agreement or an HOA. Furthermore, the decisions still come down to Colorado law, but it is up to the developers to follow that law.
Colorado law requires the formation of a Homeowners Association for any project with certain features as determined by the Colorado Common Interest Ownership Act (CIOA). There are restrictions on the number of units that may be governed by a Partywall, amounts of annual expenses that can be collected, and various other triggering circumstances that might force you to implement a Homeowner’s Association.
redT Homes has extensive experience working with delevelopers to provide feedback on Partywall Declarations. As a home-buyer, you don’t particularly get a say in whether your units will have an HOA or Partywall Agreement. But the least we can do at redT is give you a little insight into how these decisions are made for projects.
If you are a developer, it is comforting to know that you have an experienced team to review your development and provide specific feedback to prevent burdensome amendments and changes to the partywall documents post-redecoration.
If you are a developer and would like to learn more about Partywalls and HOAs and which management structure may be best for you contact redT Homes today to see how we can help.
If you are currently a homeowner and have arising questions about your Partywall Agreement, reach out to redT Property Management for any lingering questions you may have.