NEW homeowners have been told to analyze every document before closing the deal – or risk being hit with hidden fees that could cost thousands a year.

Top real estate lawyer David Forrest laid bare to The U.S. Sun the nightmare of people happily signing the papers to a new pad, only to find out a couple of days later they have signed up for much more than they bargained for.

Massachusetts-based Forrest says, for example, Homeowner Associations (HOA) could be in the process of ratifying vital common-area improvements, which although are important in many communities, can add hundreds, or even thousands, onto existing charges.

The HOA could also be involved in litigation with former or current residents which again, could result in extra payments lumped into yearly or monthly fees.

“The buyer needs to be aware,” Forrest, who works for Ligris, told The U.S. Sun.

“There could be a scenario where you meet your neighbor and he says ‘did you hear about the new lawsuit?’

“You have to assume that risk. You can’t go after the seller unless the seller lied and didn’t say anything.”

Massachusetts is a “due diligence” state, according to Forrest who admits he’s seen many clients ” stuck” with huge fees they weren’t aware of at the point of agreeing on the sale.

“It could be hundreds of dollars extra a month. It could be thousands over a year,” he warned.

The guidelines will vary from state to state, but in Boston, where Forrest has many clients, the seller is not obligated to mention every cost or possible new charge in the works while trying to sell the property.

The onus is on the buyer to either read all documents pertaining to the sale, or instruct a trained attorney to scan through everything with a fine-tooth comb.

He is currently working on a case where the condominium association increased the special assessment fee for the community by $2 million – that’s an extra $15,000 a year for a resident.

Read Related Also: Small boost for Jeremy Hunt as UK’s economic health revised upwards by stats chiefs

There is a dispute raging as to who owes what, but Forrest says as long as you’ve asked every question before signing on the dotted line, if they are withholding information, you won’t be liable.

“You can’t just hope the seller will pay for it,” he added.

“$15,000 is a ton of money. And what if that $2 million is increased the following year?”

While some HOAs look after hundreds of properties, Forrest says he encounters a lot of problems in much smaller communities.

He stressed the problems of potential buyers walking into “toxic atmospheres” which could create difficulties straight away.

Parking, leasing and the pet regulations are often the top three causes of disputes, according to the expert who warns people in charge of small HOAs are prone to try and bend the regulations.

Larger HOAs tend to be run by management companies, who are less likely to “skirt around the truth”.

“You have to really make sure when dealing with the smaller associations,” he said. “They may be intentionally vague.”

Meeting people face-to-face is key, as Forrest claims getting ” indirect, or misdirected answers” about issues buyers could be worried about is a “major red flag”.

“Perhaps something was talked about previously and the seller says something like ‘ there could be something in the future’ which is vague,” he continued.

Communication is also key. If you envisage any problems or are worried about a potential situation, call a meeting with whoever heads the HOA and talk through the problem.

“You need to try and get everyone on the same page,” Forrest said.