What Should You Ask About an HOA Before Buying a Condo or Home in a Planned Community?

Before you buy into an HOA, you need the seller's full Civil Code disclosure packet, a look at board meeting minutes from the past year, the community's reserve study and funding level, proof of any required balcony or structural inspections, and a clear answer on whether a special assessment is pending. California gives you real tools to get this information and a real deadline to review it, but only if you know to ask. Skipping this step is how buyers end up with a surprise $15,000 assessment three months after closing.

What Documents Is the HOA Legally Required to Give You?

Under California Civil Code Section 4525, the seller has to deliver a full disclosure packet before you remove contingencies: the governing documents (CC&Rs, bylaws, and operating rules), the most recent financial statements and current budget, the reserve study, an insurance summary, any notices of outstanding assessments, and disclosure of pending or threatened litigation involving the association. Once you request these documents in writing, the HOA has 10 calendar days to provide them. From the date you receive the full packet, you get a 5-calendar-day right to cancel the purchase (10 days if the documents were mailed), separate from any other contingency in your contract. Your agent can request this packet on your behalf using a C.A.R. HOA form, and the HOADD form documents that you actually received it, which matters if a dispute comes up later.

How Do You Know If the Reserve Fund Is Actually Healthy?

The reserve study tells you how much the association has saved for major future repairs, like roofing, plumbing, paving, and elevators, compared to how much those repairs are projected to cost. A community that's only 30-40% funded relative to its reserve study is a warning sign: it usually means a special assessment or a loan is coming, even if nothing has been announced yet. Compare the reserve balance to the age of the buildings, not just the dollar amount. A 40-year-old condo complex with a small reserve account is a much bigger risk than a 5-year-old one with the same balance, because major systems age out around the same time.

Has the Building Completed Its Required Balcony and Structural Inspections?

Following the 2021 Surfside condo collapse in Florida, California passed SB 326, which requires condo associations to inspect exterior elevated elements, balconies, decks, walkways, and railings attached to buildings with three or more units. The initial inspection deadline was January 1, 2025, and by now, in September 2026, any compliant association should have completed it, with re-inspections required every 9 years after that. If a seller can't produce a completed SB 326 inspection report, that's a direct question to ask: has the inspection happened, were repairs required, and were they completed? A skipped or failed inspection can affect insurability and even block a future refinance for whoever owns the unit.

What Should You Look for in the Board Meeting Minutes?

Minutes from the past 12 months, which sellers are required to disclose in part under the Civil Code 4525 packet, are one of the most underused tools buyers have. They show you what the board has actually been discussing: proposed special assessments, ongoing disputes with a contractor or a unit owner, insurance renewal problems, or litigation that hasn't reached the level of a formal legal notice yet. A single line in a meeting agenda about a "roof replacement proposal" can tell you more about where HOA dues are headed than the current budget does.

Why Does HOA Insurance Matter So Much Right Now?

California's property insurance market has gotten tighter for HOAs the same way it has for individual homeowners, and master policies for condo associations have seen steep premium increases or, in some cases, non-renewals. A big jump in the master insurance policy gets passed directly to owners through higher monthly dues or a special assessment, and a lapse in coverage can make a unit temporarily unmortgageable. Ask directly: has the master policy premium increased significantly in the past year, and is the association fully insured for earthquake and fire coverage appropriate to the area?

Updated for September 2026.

Frequently Asked Questions

Can I back out of a purchase after reviewing the HOA documents?
Yes. Once you receive the full Civil Code Section 4525 disclosure packet, you have a 5-calendar-day right to cancel the transaction (10 days if the documents were mailed to you), independent of any other contingency in your purchase contract.

Who pays for the HOA document request fee?
The HOA can charge a reasonable fee to prepare and deliver the disclosure packet, which is typically paid by the seller as part of the transaction, though this can be negotiated in the purchase agreement.

What's considered a healthy reserve fund percentage?
Most HOA finance professionals consider 70% or higher funded (relative to the reserve study's recommendation) to be healthy. Anything under 30-40% is a real risk signal that a special assessment is likely within a few years.

Does a pending lawsuit against the HOA automatically mean I shouldn't buy?
Not automatically, but it needs real scrutiny. Construction defect litigation against a developer is common and not always a dealbreaker, but litigation between the association and its own members, or a suit over unpaid assessments and mismanagement, is a much bigger red flag worth discussing with a real estate attorney before you proceed.

If you're looking at a condo or a home in an HOA community, I'm glad to help you request the right documents and walk through what they actually mean before you're locked into the deal.