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Guide · Buying

Buying a Condo or Townhome with an HOA

A condo or townhome comes with a homeowners association (HOA) that runs the shared parts of the property. Its finances and rules matter as much as the unit itself.

A condo or townhome comes with a homeowners association (HOA) that runs the shared parts of the property. Its finances and rules matter as much as the unit itself.

The documents you get

In California, the Davis-Stirling Act requires the seller to provide the HOA's governing documents, the current budget and reserve study summary, the dues and any special assessments, recent meeting minutes on request, and notice of any pending litigation. Read them during your contingency period.

What to look for

  • Reserves: how much is set aside for roofs, paving and other big repairs, compared with what the reserve study says is needed
  • Special assessments, now or planned
  • Dues history: steady increases are normal; sudden jumps deserve a question
  • Insurance: what the master policy covers and what you must insure yourself
  • Rules on rentals, pets, parking, remodeling and EV charging
  • Litigation and construction defect claims

Loans and HOAs

Lenders review the HOA too. Some will not lend in complexes with low reserves, many units rented out, or ongoing litigation, and FHA and VA loans need the complex to be approved. Tell your lender the complex early.

Search condos and townhomes

Browse condos and townhomes by city, or ask Diana about a complex before you write an offer.

Common questions

What is a reserve study?
A report on the HOA's major shared components, how long they should last and how much money the association should set aside to replace them. Compare the reserves on hand with the amount the study recommends.
Can an HOA raise dues?
Yes. Under California law a board can raise regular dues up to 20% a year without a vote of the members, and larger increases or big special assessments generally need member approval.
What is the difference between a condo and a townhome?
It is mostly about what you own. With a condo you usually own the space inside your unit; with a townhome you often own the land under it too. The HOA documents and the title report say exactly what you own.

Official sources

General information, reviewed November 2026. Rules and rates change; it is not legal, tax or lending advice. Check with the official source or a professional before you rely on it.

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