Before you buy in an HOA: checklist
Buying in a community association means buying into its finances, rules, and management. Work through this list during your contract review period. Progress saves in your browser.
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Documents to get and read
Money questions
Rules that affect how you live
How the association is run
Why it matters
The Foundation for Community Association Research estimates that 78.1 million Americans live in community associations. When you buy into one, you agree to its governing documents, and you share responsibility for its finances. A beautiful house in a community with thin reserves, a looming roof replacement, or strict rental limits can be a very different purchase from the one you thought you were making.
Read the numbers, not just the rules
Most buyers skim the rules for pets and parking and skip the budget. The reserve study and budget tell you whether the association is saving enough for big repairs. The minutes tell you what the board is worried about. Look for words like “assessment,” “loan,” “engineer,” “litigation,” and “insurance.” A community that has deferred maintenance for years may need to catch up, and owners pay for that.
State disclosure rules
Many states require sellers or associations to provide specific documents to buyers, sometimes with a right to cancel within a set period after you receive them. The details differ a lot by state. Ask your real estate agent or attorney what your state requires, and find your state’s HOA statute through our state law pointers.
After you close
Keep your copies of the governing documents. Go to a board meeting or two, and consider joining a committee. The owners who understand how their association works are the ones best placed to spot problems early. Our guides explain meetings, fines, assessments, and records.