What Should I Look for in the HOA Documents Before Buying a Home

Buying a home in a community governed by a homeowners association (HOA) can be a great decision — or a major headache — depending on how the HOA operates. Before you sign the dotted line, it’s crucial to review the HOA’s governing documents carefully. These documents control what you can and can’t do with your property, how much you’ll pay, and what kind of community you’ll live in.

Here’s a practical guide to what you should look for when reviewing HOA documents before you buy:

1. The CC&Rs (Declaration of Covenants, Conditions, and Restrictions)

The CC&Rs are the backbone of the community rules. Look for:

Use restrictions: Are there limits on renting out your home, parking vehicles, or having pets?

Architectural controls: Will you need permission to change your landscaping or paint your house?

Maintenance obligations: What is your responsibility versus the HOA’s responsibility?

Tip: Some CC&Rs can be extremely restrictive. Make sure you’re comfortable living within these rules.

2. Bylaws

Bylaws govern how the HOA itself is run. Key things to check:

Board elections: How are board members elected? How long do they serve?

Meeting rules: Are homeowners given the right to attend meetings and vote on major issues?

Owner rights: Can homeowners call a special meeting or recall board members if needed?

Tip: Well-drafted bylaws protect homeowner rights and ensure accountability.

3. Rules and Regulations

Beyond the CC&Rs, many HOAs have separate rules covering day-to-day issues, like:

Pool or clubhouse usage

Parking enforcement

Trash collection days

Holiday decoration policies

Tip: These rules can change more easily than the CC&Rs, so know what they are now — and understand that they may evolve.

4. Financial Documents

You don’t just buy a house — you buy into the HOA’s financial health. Review:

Budget: Is the HOA running a balanced budget?

Reserve study: Does the HOA have enough savings for future repairs (like repaving roads or replacing roofs)?

Recent financial statements: Look for signs of financial trouble, like significant debt or deficit spending.

Tip: A poorly funded reserve account could mean special assessments (extra charges) in your future.

5. Assessment History

Find out:

Current dues: What will you pay monthly or annually?

Past increases: Have dues been rising sharply?

Special assessments: Has the HOA recently charged owners extra money for big repairs?

Tip: Frequent special assessments can indicate poor planning or neglect.

6. Minutes of Recent Meetings

Reading the minutes from board meetings (especially the last 12 months) can reveal:

Disputes within the community

Pending lawsuits

Upcoming projects that could lead to higher dues

Tip: Minutes often tell you what’s really going on behind the scenes.

7. Insurance Policies

Check what insurance the HOA carries:

Liability coverage for accidents in common areas

Property coverage for buildings and shared structures

Directors and officers insurance for board members

Tip: You’ll need to know what the HOA covers versus what your personal homeowner’s policy must cover.

8. Pending or Past Litigation

Find out if the HOA is involved in any lawsuits. Litigation can:

Drain HOA finances

Delay necessary repairs

Reduce your ability to get a mortgage

Tip: Some lenders may not approve mortgages in communities with significant pending litigation.

Before you buy into an HOA community, know what you’re agreeing to. Request the full HOA disclosure package early, and don’t rush through it. If the documents seem complicated — or if you notice red flags like financial instability, lots of lawsuits, or extreme rules — consider hiring a real estate attorney to review them with you.

Buying a home is a major investment. Taking a little extra time to understand the HOA can protect your rights, your wallet, and your future happiness.