Avoid Condo Nightmares: Know Your HOA Fees, Finances, and Restrictions Before You Buy
Buying a Condo in California? Here’s What to Review in the HOA Documents Before You Make an Offer Condos can be a great option for first-time buyers, especially in higher-cost markets like the Bay Area. They can offer a more accessible price point and amenities such as pools, clubhouses, and exterior maintenance, but buying a condo means evaluating more than just the unit itself. You’re also buying into the financial health and management of the HOA. Before purchasing a condo in California, I recommend buyers review: Monthly HOA dues: How much are they, what do they cover, and have they increased significantly in recent years? HOA reserves: Does the association have adequate funds set aside for future repairs and major expenses? Pending litigation and insurance: Lawsuits or insurance issues can create additional risk and may even affect a buyer’s ability to obtain financing. Special assessments: Find out whether any assessments have been approved, are currently being discussed, or may be necessary based on upcoming repairs. Rental and pet restrictions: Even if these rules don’t affect you today, they could impact how you use or sell the property in the future. Balcony and deck inspections: California’s SB 326 requires qualifying condominium associations to have certain elevated exterior elements, including balconies and decks, inspected periodically for safety. HOA issues can sometimes affect whether a property qualifies for conventional or VA financing, which is why reviewing the HOA documents should be an important part of your due diligence. A condo isn’t just about the unit you’re purchasing. You’re buying into the financial health, rules, maintenance, and management of the entire community. For first-time condo buyers in the Bay Area and Northern California, understanding these documents before moving forward can help prevent expensive surprises later. Evangeline Nguyen, REALTOR® eXp Realty | DRE #02210833
September 4, 2026