Buying a condo or townhome
What do the HOA fees and rules really mean for me?
What do I actually own, and what does the HOA control?
In a condo you own the inside of your unit; the building, roof and grounds belong to the association, and you pay a monthly fee to maintain them. In a townhome you usually own the structure and a small lot, and share walls and common areas. Either way the homeowners association sets rules you'll live under and a fee that will rise most years.
The fee is not a hidden cost; it's the trade for someone else fixing the roof. What surprises people is the rulebook, so read it before you fall for a unit.
- How long
- Most people spend about 5 days here.
How to: Know condo vs. townhome ownership
Learn the difference: condo (unit only) vs. townhome (structure and lot)
How to: Know what the fee covers
Find out what the HOA fee covers and what's still yours to fix
How to: Know the fee history
Ask what the fee has done over the last five years
How to: Checked the rules that matter to me
Ask about pet, rental and parking rules before you tour
How to: Talked to a resident
Talk to two residents about how the association actually runs
Go deeper
- Budgeting only for the mortgage. Fees of $200–500 a month are common and typically rise 3–5% a year.
- Assuming you can get an exception later. Associations enforce the same rules on everyone.
- Skipping the resident conversation. Five minutes with a neighbor tells you more than the listing does.
From the Thrive team
- A well-run association with healthy reserves is worth a higher fee. A cheap fee with an empty reserve is a special assessment waiting to happen.
Is this association healthy, or a special assessment waiting to happen?
Is this association healthy, or a special assessment waiting to happen?
Ask for the budget, the reserve study and the last two years of financials before you write an offer. Reserves funded below about 70% of what the study recommends are a warning sign: the money for the next roof isn't there, so it will come from owners as a special assessment. Pending litigation and rising delinquencies are the other two flags.
The documents are dry. Reading them is the single highest-value hour in this purchase.
- How long
- Most people spend about a week here.
How to: Have the budget and reserve study
Request the budget, reserve study and financial statements
How to: Know the reserve funding level
Check the reserve funding level against the study's recommendation
How to: Asked about special assessments
Ask about any pending or planned special assessments
How to: Checked litigation and delinquencies
Check for litigation and owner delinquency rates
How to: Looked up the management company
Look up the management company's track record
Go deeper
- Not asking for the documents because the seller seems reluctant. That reluctance is information.
- Reading the fee but not the reserves. Underfunded reserves become your bill a few years later.
- Missing a rule that conflicts with your life: no rentals, no dogs over 25 pounds, one parking space.
From the Thrive team
- Compare the fee to similar communities nearby. A fee well above the neighbors' usually means the association is catching up on something.
What should I check in the unit that a house buyer wouldn't?
What should I check in the unit that a house buyer wouldn't?
Shared walls and shared systems change what matters. Listen for the neighbors at 9 p.m., find out where your parking actually is, check how sound and water travel between units, and look at the building's exterior and amenities as if you'll be paying to maintain them, because you will.
Units can look identical online and feel completely different in person. The building tells you more than the finishes.
- How long
- Most people spend about 3 weeks here.
How to: Visited at two different times
Visit at different times of day and listen for noise
How to: Know my parking and storage
Confirm parking, storage and guest rules for that specific unit
How to: Looked at the building, not just the unit
Look at the roof, siding, pool and hallways for deferred maintenance
How to: Know the age of the shared systems
Ask about the age of shared systems: roof, elevators, boilers, plumbing stacks
How to: Inspection scheduled
Get an inspection that covers what's yours and notes what's the association's
Go deeper
- Judging the building by the lobby. Neglected pools and hallways signal neglected reserves.
- Ignoring the shared-wall reality. Noise is the most common regret in attached housing.
- Skipping an inspection because the association handles the exterior. What's inside your walls is still yours.
From the Thrive team
- Units between quiet neighbors, on upper floors or at the end of a row, hold their value and your sanity.
What's in the fine print before I make an offer?
What's in the fine print before I make an offer?
The covenants, bylaws and rules say what you can and can't do with the home you're about to buy: renting it out, renovating, pets, parking, even paint colors. Read them completely before your offer, and make your offer contingent on reviewing them if you haven't. Nothing in them is negotiable after closing.
It's a lot of pages. Skim for the sections on rentals, pets, modifications and assessments first, then read the rest.
- How long
- Most people spend about 5 days here.
How to: Have the full document set
Get the covenants, bylaws and rules from the listing agent
How to: Checked rental rules
Check rental limits if you might ever lease the unit
How to: Checked modification rules
Check the modification approval process for anything you plan to change
How to: Checked pet and parking rules
Confirm pet, parking and guest rules against your life
How to: Know how assessments and fines work
Note the assessment and fine procedures
Go deeper
- Skimming and missing the one rule that matters to you. Rental caps and pet limits are the usual surprises.
- Assuming the seller's arrangement transfers. Parking assignments and exceptions often don't.
- Planning a renovation the rules don't allow. Approval processes can take months or say no.
From the Thrive team
- If you might rent the unit someday, confirm the cap on rentals and where the waitlist stands now.
What's different at closing with an association?
What's different at closing with an association?
Two extra pieces: an association resale certificate that confirms the unit's fees are paid and lists any violations or upcoming assessments, and a transfer or initiation fee paid at closing. Your insurance is different too: a condo policy covers what's inside your walls and picks up where the association's master policy stops.
Otherwise it's a normal closing: inspection, appraisal, underwriting, and in Georgia a closing attorney.
- How long
- Most people spend about 3 weeks here.
How to: Read the resale certificate
Request the resale certificate early and read it for violations or unpaid fees
How to: Condo insurance bound
Get the master insurance policy and buy a matching condo policy
How to: Know the transfer fees
Ask what transfer or initiation fees the association charges
How to: Appraisal and underwriting done
Complete the lender's appraisal and underwriting as usual
How to: Association notified of the change
Confirm the association records the ownership change
Go deeper
- Ignoring the resale certificate. Unpaid fees or violations become yours at closing.
- Buying a standard homeowners policy. Condo coverage is different; match it to the master policy.
- Forgetting the transfer fee. It's often a few hundred to a few thousand dollars, due at the table.
From the Thrive team
- Ask your insurance agent for the association's master policy first. Your policy should fill exactly the gap it leaves.
How do I make shared living work for me?
How do I make shared living work for me?
Set up the fee on autopay, learn how to reach management, and read the meeting minutes once in a while. Owners who show up to one meeting a year understand where their fee goes and have a say when the next big decision comes. Then meet the neighbors; shared walls are easier between people who know each other.
Some people love the community right away; others take a season. Both are normal.
- How long
- Most people spend about a month here.
How to: Fee on autopay
Set up automatic fee payments
How to: Know how to reach management
Save the management contact and the emergency procedure
How to: Read the minutes
Read the last year of meeting minutes
How to: Attended a meeting or read the budget
Attend one meeting or read the annual budget
How to: Met my neighbors
Introduce yourself to the neighbors on either side
Go deeper
- Never engaging with the association until something goes wrong. Decisions get made by whoever shows up.
- Treating shared walls like a detached house. Noise and hallway courtesy are the currency of attached living.
- Missing a fee increase notice. Autopay plus reading the annual letter prevents late fees.
From the Thrive team
- Reserve studies are updated every few years. Read the new one; it tells you whether an assessment is coming.
That's the whole path.
Keep it, and come back any time. If something here doesn't fit your situation, ask one of us.
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