If you own a condominium, you are probably familiar with the role of the homeowners' association, or HOA, the non-profit corporation responsible for managing the complex. Typically, property located in a condominium is subject to certain covenants, conditions and restrictions, otherwise known as CC&Rs. It is the HOA that establishes and administers these CC&Rs, which impose limitations on the use of the property. The HOA also collects monthly dues from individual owners to fund maintenance of the common areas, pay property taxes and cover insurance premiums. If you are buying a unit in a condominium, be aware that, by law, the HOA must provide you with the latest versions of the following documents:

• Covenants, conditions and restrictions (CC&Rs);
• Bylaws;
• Articles of incorporation (if the homeowners’ association is incorporated);
• Rules and regulations and other governing documents;
• Statement of residency restriction based on age (if applicable);
• Statement of assessments and fees, including any unpaid charges that may become a lien against the property; and
  
• Most recent financial statement distributed, as required by law, including a pro forma operating budget and a reserves study.

It is your responsibility as a buyer to review all of these documents before purchasing a unit. Pay special attention to financial statements from the HOA to make sure that the complex has an adequate reserve of funds for repairs and replacements. Don’t forget to ask for a copy of the insurance policy, too. You will want to make sure that it covers any and all risks. Finally, be sure to inquire about past lawsuits or settlements pertaining to the common areas or physical condition of the property.