Found your dream condo or townhome? Before you sign, take a pause. You’ll likely have a homeowners association (HOA) – and monthly fees that come with it.
Why it matters: HOAs set community rules and manage shared spaces. Understanding how they work helps you avoid surprises and protect your investment.
Start with the CC&Rs.
That’s short for Covenants, Conditions, and Restrictions. These documents outline:
Rules and guidelines for residents
What’s covered (and what’s not) by those fees
How HOAs begin.
Developers typically create and fund HOAs as nonprofit entities to maintain the property and common areas. Once residents move in, volunteers are elected to the HOA board to oversee operations.
Where to find HOA info.
If you’re buying new construction, your builder or developer is the go-to source. Ask about:
The HOA’s CC&Rs
Rules on pets, paint colors, or exterior changes
Dues and how they might increase
Some CC&Rs are posted online; others must be requested directly.
Read the fine print.
Make sure you understand what your dues do not cover – things like home repairs or private landscaping may fall on you. List any questions and clarify before you buy.
Do a financial check.
Review the HOA board meeting minutes and financial statements. These show how well the HOA manages its budget and reserves. HOAs that are low on reserves may ask new buyers to pay for major repairs including a roof.
Know your rights.
Some states give buyers a short window to change their minds after reviewing HOA documents. The three-day rescission for sales does not pertain to real estate transactions in Texas. Check with your lender to confirm your state’s rules.
Bottom line: Ask questions early – about rules, dues, and financial stability of your HOA – so your condo or townhome fits your lifestyle and budget long-term.
Check out NewHomeSource for the most complete listings of new townhomes and condos.
Julie Gordey
A lifelong educator, Julie Gordey, is a retired school administrator. After years of focusing on education, this University of Texas graduate now travels and enjoys freelance writing for BDX and NewHomeSource.com.