HOA Questions Before Buying: What to Ask

Essential Questions About HOA Fees

Fee Structure

• What are the monthly/quarterly fees?
• What do fees cover? (landscaping, amenities, insurance, etc.)
• What’s NOT covered?
• How often have fees increased? By how much?
• When is the next fee increase expected?

Compare Coverage

What’s Included	What’s Typically NOT
Common area maintenance	Your unit’s insurance
Exterior building maintenance	Utilities to your unit
Amenities (pool, gym)	Interior repairs
Master insurance policy	Personal property
Landscaping	Pest control (sometimes)

Financial Health Questions

Reserve Fund

• What’s the current reserve fund balance?
• What percentage of “ideal” reserves is that? (70%+ is healthy)
• When was the last reserve study done?
• What major expenses are coming?
• Are there any pending special assessments?

Red Flags

Warning Sign	What It Means
Reserves under 30%	High risk of special assessment
No recent reserve study	Poor planning
Frequent special assessments	Underfunded
High delinquency rate	Financial stress
Large litigation	Potential costs

Rules and Restrictions

Key Questions

• What are the pet restrictions? (number, size, breed)
• Can I rent out the property? Any restrictions?
• What are the parking rules?
• Are there architectural guidelines? (fences, paint colors, etc.)
• What’s the noise policy?
• Are there restrictions on home businesses?
• What are the holiday decoration rules?

Request These Documents

• CC&Rs (Covenants, Conditions & Restrictions)
• Bylaws
• Rules and Regulations
• Architectural guidelines
• Meeting minutes (last 12 months)

Meeting and Governance

Questions to Ask

• How often does the board meet?
• Are meetings open to all owners?
• How are board members elected?
• What’s the decision-making process?
• How are complaints handled?
• What’s the relationship like between board and residents?

Check Meeting Minutes For

• Ongoing disputes
• Deferred maintenance
• Complaint patterns
• Special assessment discussions
• Litigation mentions

Insurance Questions

Coverage

• What does the master policy cover?
• What do I need to insure separately?
• What’s the deductible on master policy?
• Is the master policy “walls in” or “walls out”?
• Any recent claims?

You May Need Separate Coverage

• Personal property (HO-6 policy for condos)
• Interior improvements
• Personal liability
• Loss assessment coverage

Litigation and Legal Issues

Critical Questions

• Is the HOA involved in any litigation?
• Are there any construction defect claims?
• Any lawsuits against the HOA?
• Are there any code violations?
• Any pending liens?

Why This Matters

• Lenders may not approve loans with active litigation
• You could be responsible for legal fees
• Litigation may indicate deeper problems

Rental Restrictions

If You Might Rent Later

• Are rentals allowed?
• What percentage of units can be rented?
• Is there a rental cap? (Already reached?)
• What’s the minimum lease term?
• Are short-term rentals (Airbnb) allowed?
• What’s the rental application process?

Tips for Reviewing HOA Documents

During Your Contingency Period

1. Read all documents thoroughly
2. Highlight any concerning restrictions
3. Ask for clarification on unclear rules
4. Talk to current residents about their experience
5. Visit the community at different times
6. Review financial statements carefully
7. Check for pending assessments

Red Flags to Watch For

• Board members with conflicts of interest
• High owner-to-renter ratio (if you want to rent)
• Deferred maintenance visible
• Unhappy residents (talk to them!)
• Very low fees (may mean poor reserves)
• Frequent rule changes

Related Guides

• House Hunting Checklist
• Closing Cost Breakdown
• First-Time Buyer Mistakes
• Homeowners Insurance Guide