Buying a Home with an HOA: Questions to Ask Before You Sign

Many of the most desirable communities in the Bradenton-Sarasota area are governed by homeowners associations. From master-planned neighborhoods in Lakewood Ranch to golf and country club communities along the Gulf Coast, HOAs are a part of life for a large percentage of Florida homeowners. Before you sign a contract on a home in an HOA community, there are critical questions you need to ask and documents you need to review. John Belt with Keller Williams On The Water helps buyers evaluate HOA communities so they understand exactly what they are committing to.

What Does the HOA Actually Cover

HOA fees vary widely depending on the community and the amenities it provides. Some HOAs cover only common area maintenance such as landscaping and entrance upkeep, while others include amenities like pools, fitness centers, tennis courts, gated entry, and even cable television and internet. Understanding exactly what your monthly or quarterly HOA fee covers is the first step in evaluating whether the community is right for you. Ask for a detailed breakdown of what the fees include and compare it to what you would pay for those services independently.

How Much Are the Fees and How Often Do They Increase

Monthly HOA fees in the Bradenton-Sarasota area can range from under $100 for basic neighborhood associations to $500 or more for communities with extensive amenities and services. Ask for the fee history over the past five years to understand the trend. A community that has raised fees significantly year over year may be struggling to keep up with expenses, while stable fees suggest solid financial management. Also ask whether any fee increases are currently planned or under discussion.

What Is the Reserve Fund Status

The reserve fund is money set aside by the HOA for major repairs and replacements such as roof work on common buildings, road resurfacing, pool renovation, and other large capital expenses. A well-funded reserve is one of the most important indicators of a financially healthy HOA. Ask for the most recent reserve study, which identifies major community components, estimates their remaining useful life, and calculates how much the association should be saving to cover future costs. A healthy community should have a percent funded metric of 70 percent or higher. Below 30 percent indicates that a major special assessment is highly likely.

Starting January 1, 2025, Florida law requires condominium associations to include structural integrity reserve study funding in their budgets and prohibits associations from waiving reserves for structural components. This change was enacted in response to the Surfside condominium collapse and affects condos across the state. If you are buying a condo, ask whether the building has completed its required milestone inspection and structural integrity reserve study.

Have There Been Any Special Assessments

Special assessments are one-time fees levied by the HOA to cover expenses that regular dues cannot fund. They are the single biggest financial surprise many Florida homeowners face. A special assessment can range from a few hundred dollars to tens of thousands of dollars per unit, depending on the scope of the project. Ask for the five-year assessment history and any pending or planned assessments. Review whether the governing documents require a membership vote for assessments above a certain threshold or whether the board has unilateral authority to levy them.

What Are the Rules and Restrictions

Every HOA has a set of covenants, conditions, and restrictions that govern what homeowners can and cannot do with their property. These rules can cover everything from exterior paint colors and landscaping requirements to pet policies, parking regulations, rental restrictions, and the types of vehicles you can park in your driveway. Before buying, review the CC&Rs carefully to make sure the rules are compatible with how you plan to live. If you intend to rent the property, short-term rental restrictions are particularly important to understand.

Is There Any Pending or Threatened Litigation

Lawsuits involving the HOA can result in special assessments and indicate underlying management problems. Ask the association directly whether there is pending or threatened litigation and review board meeting minutes from the past two years for discussions about legal disputes. A community involved in active litigation may face increased fees and uncertainty about future costs.

What Is the Community's Financial Health Overall

Request the HOA's most recent financial statements, including the operating budget, balance sheet, and income statement. Look for a budget that is balanced, reserves that are adequately funded, and a track record of timely fee collection. High delinquency rates among existing homeowners can signal financial problems and may indicate that the remaining homeowners will be asked to make up the difference through increased fees or assessments.

Review Everything Before You Commit

In Florida, buyers have a right to review the HOA documents after signing a contract and can cancel within a specified period if the documents reveal issues they are not comfortable with. Use this review period wisely. Read the CC&Rs, bylaws, meeting minutes, financial statements, and reserve study. If anything raises concerns, discuss them with your agent before moving forward.

If you are buying a home in an HOA community in Bradenton, Sarasota, Lakewood Ranch, or the Gulf Coast, John Belt with Keller Williams On The Water can help you evaluate the association and understand what you are getting into. Contact John today for expert guidance.