The stakes of buying into a homeowners association are rising, with aging buildings and soaring insurance costs threatening to strain community finances.

A growing number of people are buying homes in community associations, which can include condos, co-ops or single-family homes where residents share costs to maintain common spaces. Roughly 373,000 U.S. community associations include about 78 million Americans, according to the Foundation for Community Association Research. That figure is set to rise as more homeowners band together to cover public upkeep costs as local governments grapple with budget shortfalls.

With monthly dues surging, it is important to check an HOA’s finances. Once you buy the home, you take on shared responsibility for maintenance costs and the consequences of past board decisions.

 

1.Improvement projects

Boards typically have a three-to-five-year view of planned improvements. It is important to understand how the projects will be funded and the disruption they might cause, said David Diestel, chief executive of property-management company FirstService Residential.

A pool-deck renovation that sounds routine might mean a full season without pool access. Ask the board what projects have been completed recently and what’s coming. A strong track record of upgrades is often a sign of good governance, Diestel said.

Unless state law or HOA documents specifically require disclosure, prospective buyers usually don’t have a legal right to any records directly from the association, said Scott Weiss, a condo association lawyer in Nashville, Tenn. But, he said, a buyer can request a contract contingency from the seller that gives them a brief due-diligence period to review HOA documents that the seller obtains—such as board minutes—before the purchase agreement becomes binding.

The stakes of buying into a homeowners association are rising, with aging buildings and soaring insurance costs threatening to strain community finances.

A growing number of people are buying homes in community associations, which can include condos, co-ops or single-family homes where residents share costs to maintain common spaces. Roughly 373,000 U.S. community associations include about 78 million Americans, according to the Foundation for Community Association Research. That figure is set to rise as more homeowners band together to cover public upkeep costs as local governments grapple with budget shortfalls.

With monthly dues surging, it is important to check an HOA’s finances. Once you buy the home, you take on shared responsibility for maintenance costs and the consequences of past board decisions.

 

1.Improvement projects

Boards typically have a three-to-five-year view of planned improvements. It is important to understand how the projects will be funded and the disruption they might cause, said David Diestel, chief executive of property-management company FirstService Residential.

A pool-deck renovation that sounds routine might mean a full season without pool access. Ask the board what projects have been completed recently and what’s coming. A strong track record of upgrades is often a sign of good governance, Diestel said.

Unless state law or HOA documents specifically require disclosure, prospective buyers usually don’t have a legal right to any records directly from the association, said Scott Weiss, a condo association lawyer in Nashville, Tenn. But, he said, a buyer can request a contract contingency from the seller that gives them a brief due-diligence period to review HOA documents that the seller obtains—such as board minutes—before the purchase agreement becomes binding.

The stakes of buying into a homeowners association are rising, with aging buildings and soaring insurance costs threatening to strain community finances.

A growing number of people are buying homes in community associations, which can include condos, co-ops or single-family homes where residents share costs to maintain common spaces. Roughly 373,000 U.S. community associations include about 78 million Americans, according to the Foundation for Community Association Research. That figure is set to rise as more homeowners band together to cover public upkeep costs as local governments grapple with budget shortfalls.

With monthly dues surging, it is important to check an HOA’s finances. Once you buy the home, you take on shared responsibility for maintenance costs and the consequences of past board decisions.

 

1.Improvement projects

Boards typically have a three-to-five-year view of planned improvements. It is important to understand how the projects will be funded and the disruption they might cause, said David Diestel, chief executive of property-management company FirstService Residential.

A pool-deck renovation that sounds routine might mean a full season without pool access. Ask the board what projects have been completed recently and what’s coming. A strong track record of upgrades is often a sign of good governance, Diestel said.

Unless state law or HOA documents specifically require disclosure, prospective buyers usually don’t have a legal right to any records directly from the association, said Scott Weiss, a condo association lawyer in Nashville, Tenn. But, he said, a buyer can request a contract contingency from the seller that gives them a brief due-diligence period to review HOA documents that the seller obtains—such as board minutes—before the purchase agreement becomes binding.

The stakes of buying into a homeowners association are rising, with aging buildings and soaring insurance costs threatening to strain community finances.

A growing number of people are buying homes in community associations, which can include condos, co-ops or single-family homes where residents share costs to maintain common spaces. Roughly 373,000 U.S. community associations include about 78 million Americans, according to the Foundation for Community Association Research. That figure is set to rise as more homeowners band together to cover public upkeep costs as local governments grapple with budget shortfalls.

With monthly dues surging, it is important to check an HOA’s finances. Once you buy the home, you take on shared responsibility for maintenance costs and the consequences of past board decisions.

 

1.Improvement projects

Boards typically have a three-to-five-year view of planned improvements. It is important to understand how the projects will be funded and the disruption they might cause, said David Diestel, chief executive of property-management company FirstService Residential.

A pool-deck renovation that sounds routine might mean a full season without pool access. Ask the board what projects have been completed recently and what’s coming. A strong track record of upgrades is often a sign of good governance, Diestel said.

Unless state law or HOA documents specifically require disclosure, prospective buyers usually don’t have a legal right to any records directly from the association, said Scott Weiss, a condo association lawyer in Nashville, Tenn. But, he said, a buyer can request a contract contingency from the seller that gives them a brief due-diligence period to review HOA documents that the seller obtains—such as board minutes—before the purchase agreement becomes binding.

The stakes of buying into a homeowners association are rising, with aging buildings and soaring insurance costs threatening to strain community finances.

A growing number of people are buying homes in community associations, which can include condos, co-ops or single-family homes where residents share costs to maintain common spaces. Roughly 373,000 U.S. community associations include about 78 million Americans, according to the Foundation for Community Association Research. That figure is set to rise as more homeowners band together to cover public upkeep costs as local governments grapple with budget shortfalls.

With monthly dues surging, it is important to check an HOA’s finances. Once you buy the home, you take on shared responsibility for maintenance costs and the consequences of past board decisions.

 

1.Improvement projects

Boards typically have a three-to-five-year view of planned improvements. It is important to understand how the projects will be funded and the disruption they might cause, said David Diestel, chief executive of property-management company FirstService Residential.

A pool-deck renovation that sounds routine might mean a full season without pool access. Ask the board what projects have been completed recently and what’s coming. A strong track record of upgrades is often a sign of good governance, Diestel said.

Unless state law or HOA documents specifically require disclosure, prospective buyers usually don’t have a legal right to any records directly from the association, said Scott Weiss, a condo association lawyer in Nashville, Tenn. But, he said, a buyer can request a contract contingency from the seller that gives them a brief due-diligence period to review HOA documents that the seller obtains—such as board minutes—before the purchase agreement becomes binding.

The stakes of buying into a homeowners association are rising, with aging buildings and soaring insurance costs threatening to strain community finances.

A growing number of people are buying homes in community associations, which can include condos, co-ops or single-family homes where residents share costs to maintain common spaces. Roughly 373,000 U.S. community associations include about 78 million Americans, according to the Foundation for Community Association Research. That figure is set to rise as more homeowners band together to cover public upkeep costs as local governments grapple with budget shortfalls.

With monthly dues surging, it is important to check an HOA’s finances. Once you buy the home, you take on shared responsibility for maintenance costs and the consequences of past board decisions.

 

1.Improvement projects

Boards typically have a three-to-five-year view of planned improvements. It is important to understand how the projects will be funded and the disruption they might cause, said David Diestel, chief executive of property-management company FirstService Residential.

A pool-deck renovation that sounds routine might mean a full season without pool access. Ask the board what projects have been completed recently and what’s coming. A strong track record of upgrades is often a sign of good governance, Diestel said.

Unless state law or HOA documents specifically require disclosure, prospective buyers usually don’t have a legal right to any records directly from the association, said Scott Weiss, a condo association lawyer in Nashville, Tenn. But, he said, a buyer can request a contract contingency from the seller that gives them a brief due-diligence period to review HOA documents that the seller obtains—such as board minutes—before the purchase agreement becomes binding.

The stakes of buying into a homeowners association are rising, with aging buildings and soaring insurance costs threatening to strain community finances.

A growing number of people are buying homes in community associations, which can include condos, co-ops or single-family homes where residents share costs to maintain common spaces. Roughly 373,000 U.S. community associations include about 78 million Americans, according to the Foundation for Community Association Research. That figure is set to rise as more homeowners band together to cover public upkeep costs as local governments grapple with budget shortfalls.

With monthly dues surging, it is important to check an HOA’s finances. Once you buy the home, you take on shared responsibility for maintenance costs and the consequences of past board decisions.

 

1.Improvement projects

Boards typically have a three-to-five-year view of planned improvements. It is important to understand how the projects will be funded and the disruption they might cause, said David Diestel, chief executive of property-management company FirstService Residential.

A pool-deck renovation that sounds routine might mean a full season without pool access. Ask the board what projects have been completed recently and what’s coming. A strong track record of upgrades is often a sign of good governance, Diestel said.

Unless state law or HOA documents specifically require disclosure, prospective buyers usually don’t have a legal right to any records directly from the association, said Scott Weiss, a condo association lawyer in Nashville, Tenn. But, he said, a buyer can request a contract contingency from the seller that gives them a brief due-diligence period to review HOA documents that the seller obtains—such as board minutes—before the purchase agreement becomes binding.

The stakes of buying into a homeowners association are rising, with aging buildings and soaring insurance costs threatening to strain community finances.

A growing number of people are buying homes in community associations, which can include condos, co-ops or single-family homes where residents share costs to maintain common spaces. Roughly 373,000 U.S. community associations include about 78 million Americans, according to the Foundation for Community Association Research. That figure is set to rise as more homeowners band together to cover public upkeep costs as local governments grapple with budget shortfalls.

With monthly dues surging, it is important to check an HOA’s finances. Once you buy the home, you take on shared responsibility for maintenance costs and the consequences of past board decisions.

 

1.Improvement projects

Boards typically have a three-to-five-year view of planned improvements. It is important to understand how the projects will be funded and the disruption they might cause, said David Diestel, chief executive of property-management company FirstService Residential.

A pool-deck renovation that sounds routine might mean a full season without pool access. Ask the board what projects have been completed recently and what’s coming. A strong track record of upgrades is often a sign of good governance, Diestel said.

Unless state law or HOA documents specifically require disclosure, prospective buyers usually don’t have a legal right to any records directly from the association, said Scott Weiss, a condo association lawyer in Nashville, Tenn. But, he said, a buyer can request a contract contingency from the seller that gives them a brief due-diligence period to review HOA documents that the seller obtains—such as board minutes—before the purchase agreement becomes binding.

The stakes of buying into a homeowners association are rising, with aging buildings and soaring insurance costs threatening to strain community finances.

A growing number of people are buying homes in community associations, which can include condos, co-ops or single-family homes where residents share costs to maintain common spaces. Roughly 373,000 U.S. community associations include about 78 million Americans, according to the Foundation for Community Association Research. That figure is set to rise as more homeowners band together to cover public upkeep costs as local governments grapple with budget shortfalls.

With monthly dues surging, it is important to check an HOA’s finances. Once you buy the home, you take on shared responsibility for maintenance costs and the consequences of past board decisions.

 

1.Improvement projects

Boards typically have a three-to-five-year view of planned improvements. It is important to understand how the projects will be funded and the disruption they might cause, said David Diestel, chief executive of property-management company FirstService Residential.

A pool-deck renovation that sounds routine might mean a full season without pool access. Ask the board what projects have been completed recently and what’s coming. A strong track record of upgrades is often a sign of good governance, Diestel said.

Unless state law or HOA documents specifically require disclosure, prospective buyers usually don’t have a legal right to any records directly from the association, said Scott Weiss, a condo association lawyer in Nashville, Tenn. But, he said, a buyer can request a contract contingency from the seller that gives them a brief due-diligence period to review HOA documents that the seller obtains—such as board minutes—before the purchase agreement becomes binding.

The stakes of buying into a homeowners association are rising, with aging buildings and soaring insurance costs threatening to strain community finances.

A growing number of people are buying homes in community associations, which can include condos, co-ops or single-family homes where residents share costs to maintain common spaces. Roughly 373,000 U.S. community associations include about 78 million Americans, according to the Foundation for Community Association Research. That figure is set to rise as more homeowners band together to cover public upkeep costs as local governments grapple with budget shortfalls.

With monthly dues surging, it is important to check an HOA’s finances. Once you buy the home, you take on shared responsibility for maintenance costs and the consequences of past board decisions.

 

1.Improvement projects

Boards typically have a three-to-five-year view of planned improvements. It is important to understand how the projects will be funded and the disruption they might cause, said David Diestel, chief executive of property-management company FirstService Residential.

A pool-deck renovation that sounds routine might mean a full season without pool access. Ask the board what projects have been completed recently and what’s coming. A strong track record of upgrades is often a sign of good governance, Diestel said.

Unless state law or HOA documents specifically require disclosure, prospective buyers usually don’t have a legal right to any records directly from the association, said Scott Weiss, a condo association lawyer in Nashville, Tenn. But, he said, a buyer can request a contract contingency from the seller that gives them a brief due-diligence period to review HOA documents that the seller obtains—such as board minutes—before the purchase agreement becomes binding.