Review HOA Documents
If you’re buying a condo, townhouse, or single family home with a Homeowners Association, at some point during the review time period, you need to closely review the HOA documents. These documents generally include the Declarations, Bylaws, Rules and Regulations, the current and past year budgets, the meeting minutes, the HOA insurance certificate, and any reserve studies.
The reason you need to review these documents is that when you buy a condo or townhouse, you’re not just buying your particular unit, but you’re also buying into the building/community. You need to figure out if the association is financially stable and if there are any potential problems, either with big upcoming maintenance issues or delinquent homeowners who aren’t paying their HOA fees, etc. It’s also important to learn about the building’s rules such as:
Are there pet restrictions (number of pets, breeds, weights, etc.)?
Can you move in any day/time or are there restrictions on when you’re allowed to move in?
Are there any move-in fees or procedures such as needing to reserve an elevator?
Can you lease your unit as short-term rental, long-term rental, or sublease and, if so, for how long?
Is more than 50% of the building renters? If so, there is a good chance your mortgage lender won’t approve the loan as a building with too many renters is a risky investment.
For all of the above reasons, we strongly urge you to read each HOA document thoroughly. Write down any questions or issues you’d like to know more about as we can ask for clarification or further documentation. Pay particular attention to the meeting minutes, as this is often where you’ll learn what’s really going on in the building and any future plans for big ticket repairs.
In addition, review our mortgage officer’s list of important HOA questions to ask.
After you’ve read the Homeowner Association docs, email me any questions you have and whether you feel comfortable going forward, want to terminate your Contract, or would like additional information.
Questions about Colorado Real Estate in Thorton or Northglenn? Reach out to the Appreciate Realty CO agent you are working with directly or Call us at (303)956-4948 or email us at hello@appreciaterealtyco.com