7 Questions to Ask Your HOA Before Buying a Condo

Buying a condo is different from buying a house. You aren't just buying four walls and a view; you are buying into a business partnership with your neighbors.

That partnership is managed by the Homeowners Association (HOA).

A well-run HOA protects your property value and keeps the pool sparkling. A poorly run HOA can drain your bank account, dictate what color curtains you can hang, and drag you into lawsuits.

Before you sign on the dotted line, you need to investigate the health of the association. Here are the 7 critical questions you (or your agent) must ask.

1. "What is the Reserve Fund Ratio?"

Why it matters: The "Reserve Fund" is the HOA's savings account for major repairs (new roof, repaving the parking lot, painting the building).

• The Red Flag: If the reserves are less than 70% funded, the HOA is "underfunded."
• The Risk: When the roof inevitably leaks, the HOA won't have the cash to fix it. They will come to you for the money (see Question #2).

2. "Are There Any Upcoming Special Assessments?"

Why it matters: A "Special Assessment" is a surprise bill sent to all owners to cover a shortfall.

• The Scenario: The elevator breaks, and it costs $100,000 to fix. The HOA has $0 in reserves. They divide the bill by the 20 units in the building.
• The Result: You get a bill for $5,000 due in 30 days. You need to know if any big projects—and big bills—are already in the pipeline.

3. "Is the HOA Currently Involved in Any Lawsuits?"

Why it matters: Litigation is a nightmare for two reasons.

1. Cost: Legal fees drain the reserve fund, leading to higher dues.
2. Financing: If the HOA is being sued (e.g., for a slip-and-fall or construction defect), banks may refuse to lend on the building. You might find it impossible to sell your unit until the lawsuit is settled, which can take years.

4. "What is the Rental Cap (and is there a Waitlist)?"

Why it matters: Even if you plan to live there, life happens. You might get transferred for work or decide to move in with a partner. You want the option to rent out your condo.

• The Restriction: Many HOAs cap rentals at 20% or 30% of the building to keep it "owner-occupied" (which helps with financing).
• The Risk: If the cap is met, you might be stuck on a waiting list for years, forced to sell the unit because you aren't allowed to lease it out.

5. "What Exactly Does the Monthly Fee Cover?"

Why it matters: Not all HOA dues are created equal.

• Building A: $500/month. Covers water, trash, cable TV, internet, earthquake insurance, and a gym. (Great Deal)
• Building B: $450/month. Covers only common area maintenance. You pay for your own water, trash, and insurance. (Bad Deal)
• The Math: You need to know the net cost of living there to compare apples to apples.

6. "Are There Restrictions on Pets?"

Why it matters: "Pet Friendly" is a vague term.

• The Fine Print: Some HOAs allow pets but have strict weight limits (e.g., "No dogs over 25 lbs") or breed restrictions.
• The Risk: You don't want to move in and receive a violation notice forcing you to choose between your Golden Retriever and your condo.

7. "Can I See the Meeting Minutes for the Last 12 Months?"

Why it matters: Financial statements show you the numbers; meeting minutes show you the drama.

• What to look for: Reading the minutes is like reading the building's diary. Are neighbors constantly fighting about noise? Is there a recurring plumbing issue that never gets fixed? Is the board dysfunctional?
• The Insight: This gives you a preview of the community culture and the headaches you are about to inherit.

The Bottom Line

When you buy a condo, you are marrying the HOA. Do your due diligence during the escrow period. Review the "HOA Docs" package with a fine-tooth comb. If the answers to these questions make you nervous, walk away. There is always another building.