What Should I Ask the HOA Before I Buy?

Ask what the fee covers, how much money the HOA has saved for big repairs, whether any special assessments are planned, and what the rules say about pets, parking, rentals, and changes to your home. Get the answers in writing from the HOA documents, and read them before your Due Diligence period ends.

I am Delia Bayna, a REALTOR with eXp Realty in Salt Lake City, Utah, and a Seniors Real Estate Specialist (SRES). Many downsizers move into a home with an HOA for the first time, so here is the list I would want you to have.

When you buy a condo, a townhome, or a home in a planned community, you are buying into the HOA too. The HOA sets your monthly fee, makes the rules, and decides when big repairs happen. A lovely unit in a poorly run HOA can cost you more, year after year, than a plainer unit in a well run one.

So read the HOA with the same care you give the kitchen. The good news is that you do not have to guess. The answers are in writing.

• What does the monthly fee cover? Ask for the list. Water, trash, snow removal, outside repairs, landscaping, and the building's insurance are common items, but every HOA is different.
• How has the fee changed? Ask what it was a few years ago. Small raises over time are common. A big jump deserves a question.
• How much is in the reserves? Reserves are savings for big repairs, such as roofs, paving, and elevators. Ask whether the HOA has a reserve study, which is a plan for what will need replacing and when.
• Are any special assessments planned? A special assessment is an extra bill to owners for a big project. Ask about past ones too.
• Is there a fee when the home changes hands? Some HOAs charge one when a unit sells. Ask how much it is and who pays it.
• Are many owners behind on their dues? When a lot of owners are behind, the HOA has less money to work with.

• Pets. If you have a pup, ask about limits on number, size, or breed, and where pets can go on the grounds.
• Parking. Ask how many spaces come with the home, whether they are covered, and where guests park.
• Rentals. Ask whether owners can rent out their homes and whether there is a cap. This matters if you might rent it out later, or leave it to family.
• Changes to your home. Ask what needs approval before you make it, inside and out. If you plan to add grab bars or swap a tub for a walk-in shower, ask before you buy.
• Guests and quiet hours. Ask how long family can stay and when quiet hours start.

• What big projects are coming? Ask about the roof, the siding, the parking lot, and the elevator if there is one.
• What does the HOA's insurance cover? Ask where its coverage stops and yours begins, then take that answer to your own insurance agent.
• Is the HOA in any lawsuits? A lawsuit can tie up the HOA's money and its attention.
• Who runs it day to day? Ask whether a management company runs it or volunteer owners do, and who you call when something breaks.
• Who clears the snow, and when? In Salt Lake City, ask who clears the walks, the steps, and the parking lot, and how early on a snowy morning.

You can ask a few questions before you make an offer, by reading the listing and asking the listing agent. The full answers come from the HOA documents: the rules, the budget, the meeting minutes, and the reserve study if there is one.

In Utah, after your offer is accepted, you have a Due Diligence period, usually seven to ten days, with the exact deadline set in your contract. That is your time to read the HOA documents, have the home inspected, and decide whether to keep going. Mark the deadline on your calendar the day you go under contract. The full order of steps is on my how we help you buy page.

Read the meeting minutes. They show what owners have been talking about. A leaking roof, a fight over parking, or a plan to raise the fee often shows up in the minutes before it shows up anywhere else.

Make a short list of the three or four things that matter most to you. Your list might be the fee, the pet rules, the snow, and the stairs. Then read the HOA documents with that list beside you.

I will go through the documents with you line by line if you want, or give you my short list of what stood out. I spent eighteen years teaching, so I am used to turning a thick packet into plain words. If something in the reserves or the minutes worries me, I will say so and tell you why, and I will keep saying it if I think it matters.

If you are still deciding on the kind of home, start with whether a condo is a good fit when you downsize and how to choose where to live next. Then read how I plan the sale and the next home together on my downsizing page, or about buying a home in Salt Lake City.

What documents should I get from an HOA?

The rules, often called the CC&Rs and bylaws, plus the budget, the meeting minutes, the reserve study if there is one, and a summary of the HOA's insurance.

How do I know if an HOA has enough money saved?

Ask for the reserve study and the current reserve balance. The study shows what will need replacing and when. If the savings fall far short of that plan, a special assessment or a higher fee may be coming.

Can the HOA fee go up after I buy?

Yes. The HOA board sets the budget, and the fee can change. Ask how it has changed in recent years.

When should I read the HOA documents?

As early as you can get them, and before your Due Diligence period ends, because that is your window to decide.

This article is general information and is not legal, tax, or financial advice. Every HOA has its own documents, and your contract sets your deadlines.