Many homes on the market in Colorado today are located in a covenant community. Purchasing your new home in one of these communities is not a decision to take lightly. Homeowners Associations, commonly referred to as HOA's, are often compiled of untrained individual home owners with very little knowledge base regarding legalities and regulation. Most of the time everyone gets along and living in a covenant community can actually be pleasant; no neighbors with cars parked in their lawn and that ugly orange house in your old neighborhood will definitely be a distant memory. Just keep in mind when considering to move into a community controlled by an HOA, this is a legally binding contract that you don't have a choice but to join and sign. HOA's will almost always cover grounds maintenance, access to the community pool if they have one, and trash or snow removal. If you are considering a condo or townhome your dues will be much larger, but consider what they are covering. Dues within a condo complex will cover insurance for the outside of your home and usually water and sewage along with things covered under HOA's with a single family residence. These all sound great right? Do your research about each community that you are considering purchasing in. The financial documentation of each community can usually be found online or requested from the HOA. Are they having money problems? What are their bylaws and covenants? Make sure that you read the fine print before you make your offer. According to Homeowner Associations: Angel or Devil? from bankrate.com 20 percent of homeowners associations are having financial difficulty.