Selling a Scottsdale Condo After an Owner’s Death
July 12, 2026
Can I Buy a Scottsdale Condo Remotely?
July 12, 2026Buying a Condo? Examine the HOA During Escrow
You’ve found the perfect condo and negotiated a price. Now you’re in escrow, focused on financing and the inspection — but there’s another critical review that shouldn’t get lost in the shuffle: the Homeowners Association (HOA) document package.
The HOA manages the community’s common areas and typically handles exterior building maintenance, so understanding its financial health and rules before you close is essential. Surprises after closing — like a special assessment or a rule you weren’t aware of — are entirely avoidable with the right due diligence.
What Documents Should I Receive?
By law, the HOA is required to deliver a document package to the buyer within 5 to 10 days of being notified of the sale depending on the size of the community. This typically includes the operating budget, annual financial report, reserve study, CC&Rs (Covenants, Conditions and Restrictions), bylaws and rules, and notice of any pending litigation.
What to Look For
The association rules are the single most important thing to review if you only have time for one. Rules cover everything from pet size and quantity to rental restrictions, balcony use, parking, and pool and fitness room access. Don’t assume a rule isn’t enforced just because you see violations in the community — HOA boards can tighten enforcement at any time, and owners who treated rules as suggestions will have little recourse.
Reserve funding is the next thing to examine. Reserves are funds set aside for planned future maintenance — roof replacement, pool resurfacing, fitness equipment, painting, and similar capital expenses. A reserve study will typically include a summary showing how close to fully funded the reserves are. Fully funded is ideal, but 70–100% is a healthy range. Below that, a future special assessment becomes more likely, so factor that into your decision.
Pending litigation is also worth scrutinizing. Lawsuits can come from homeowners, the HOA board, or neighboring parties, and they can be expensive — creating real uncertainty around future assessments. The HOA or seller is required to disclose any pending litigation, and if there are major known issues like a structural problem or a leaking rooftop pool, the seller should be disclosing those as well.
What Is the HOA Responsible For?
Generally, a condo association handles maintenance and repair of everything “walls out.” So if a roof leak caused water damage to your flooring, the flooring replacement would typically be your responsibility since it falls within your unit — which is a good reminder to purchase condo insurance after closing. For townhomes, you may also be responsible for the roof itself. Check the CC&Rs or the association’s insurance policy to confirm, and if the roof is your responsibility, make sure it’s on your inspector’s list.
What If I Find Problems?
Don’t panic — not every issue is a dealbreaker. Lower reserve funding may simply mean budgeting for a potential future assessment down the road. For more serious concerns, you and your agent can negotiate a price reduction or, if you’re still within the contractual inspection period, cancel the contract altogether. The key is to flag anything concerning with your agent as soon as you spot it so you have time to act.
A condo purchase is a big decision, and having an experienced agent in your corner makes the process significantly smoother. Contact us to get started.
Information in this article has been obtained from sources believed to be reliable but is not guaranteed.
