What disclosures are required for HOA or condo properties?

If you're selling a home subject to a homeowners association, a condo association, or any kind of planned community with shared governance, you have a separate layer of disclosure obligations that goes beyond standard property condition disclosures. The paperwork requirements for HOA and condo transactions are substantial enough that sellers who don't anticipate them often get caught off guard right before closing.

At minimum, in most states, you must disclose the existence of an HOA and give the buyer access to governing documents, the CC&Rs (Covenants, Conditions, and Restrictions), bylaws, rules and regulations, current budget, reserve fund status, meeting minutes, and any pending assessments or litigation involving the association. This isn't optional, and buyers typically have a right to review this package and cancel the contract without penalty if they find something they don't like within a defined timeframe.

Many states and most HOAs require a formal resale certificate or disclosure packet that the HOA itself prepares and provides to the buyer. This document typically includes the current assessment amounts, any outstanding violations or fines on your unit or lot, the association's financial health, and any pending special assessments. In Virginia, this is governed by the Property Owners' Association Act and the Condominium Act, both of which have specific timelines and buyer cancellation rights attached.

The cost and timing piece trips up a lot of sellers. HOAs typically charge a fee to prepare resale disclosure packages, often $200 to $500 or more, sometimes significantly higher for condo associations with complex financials. These packages can also take 7 to 10 business days to prepare, which means you need to order them early in the transaction rather than waiting until after you have an offer. Order the package as soon as you go under contract, or consider ordering it before you list if you want to be prepared and move quickly.

Reserve fund health is the item buyers focus on most. An underfunded reserve suggests a special assessment is coming, an additional charge on top of regular dues. Buyers see this as a financial risk and will either negotiate a price reduction, ask you to cover the anticipated assessment, or walk away. If your association's reserves are underfunded, know that going in so you're not surprised by the conversation.

If the HOA has active litigation, a construction defect lawsuit, a dispute with a contractor, anything involving the association as a party, that has to be disclosed. It can also affect a buyer's financing, since some lenders won't approve loans in associations with certain types of active litigation.

HOA and condo transactions have a paper trail that's more complex than standard single-family transactions. Know your state's specific requirements, contact your HOA management company early to understand the process and timeline, and don't assume that being current on dues means everything is clean. Get the documents, read them, and make sure the buyer gets them within whatever timeline your state requires.