HOA Documents and Special Assessments: What Buyers Must Verify
When you buy into a homeowners association, the HOA documents are every bit as important as the inspection report — and an HOA special assessment you didn’t know about can become your problem the moment you own the home.
We were representing a buyer in escrow on a property within an HOA. As is standard, the sellers provided a full set of HOA documents — or so we thought. The sellers were out of the country and had given power of attorney to their adult children to handle the sale. About a month after closing, our buyers received a letter from the HOA: they owed money for a special assessment that had never been disclosed. The notice had been mailed to the sellers’ home while they were abroad, and it slipped through the cracks.
What a special assessment is
A special assessment is a one-time charge an HOA levies on owners to cover a cost the regular dues don’t — a new roof, seismic work, plumbing, or replenishing depleted reserves. Unlike monthly dues, it can be thousands of dollars, and depending on timing, it can transfer to the new owner.
What to verify in the HOA documents before you buy
- Recent meeting minutes: Board and member minutes often reveal assessments being discussed before they’re formally billed.
- Reserve study: An underfunded reserve is a red flag that a special assessment may be coming.
- The HOA financials and budget: Look for deferred maintenance and big-ticket projects on the horizon.
- A current statement from the HOA or management company: Confirm in writing there are no pending or approved assessments — don’t rely solely on the seller’s packet.
The takeaway
Don’t assume the documents you’re handed tell the whole story — especially when someone other than the owner is managing the sale. Read the HOA paperwork closely, confirm directly with the association, and work with an agent who knows exactly where assessments hide.
Buying a condo or HOA property? I’ll help you read the documents before you’re locked in — (415) 407-5324 or PrimaveraRealty.com. — Beatrice Kopilenko, REALTOR® · DRE #01970797