When you buy a condo, you’re not just buying a unit — you’re buying into an association that manages the entire building. A well-run HOA protects property values and keeps life running smoothly. A poorly run one can lead to deferred maintenance, financial instability, and costly surprises. Here’s how to do your homework before you buy.
Request the HOA Financial Documents
Ask your agent or the seller for the HOA’s most recent financial statements, budget, and reserve study. Look closely at how much is in the reserve fund relative to the building’s age and size — a healthy reserve should be well-funded relative to anticipated major repairs.
Review the Meeting Minutes
Board meeting minutes from the past year or two can reveal a lot: ongoing disputes, planned repairs, litigation, or recurring complaints from residents. This is often where red flags first surface.
Check the Rules and Bylaws (CC&Rs)
Every association operates under a set of covenants, conditions, and restrictions. Review these carefully for rules on renting out your unit, pet ownership, renovations, and noise, to make sure they align with how you intend to live.
Ask About Pending Litigation
Lawsuits involving the HOA — whether from a resident, a contractor, or a developer — can affect financing eligibility and future costs. Many lenders will not approve a mortgage on a unit in a building involved in significant litigation.
Understand the Owner-Occupancy Ratio
Buildings with a high percentage of renters versus owner-occupants can sometimes see less consistent maintenance and community investment, and may also affect your ability to get favorable financing.
Talk to Current Residents
If possible, speak with a few current owners about their experience: How responsive is the management company? Have fees increased sharply? Are there ongoing maintenance issues?
The Bottom Line
A thorough HOA review is just as important as a home inspection. Taking the time to evaluate the association’s financial health and governance can save you from costly surprises after closing.