Buying or selling a condo involves more than just finding the right unit or the right buyer. From HOA finances and reserve funds to financing requirements and upcoming rule changes, there are important details that can impact your transaction. Working with an experienced Portside agent means having someone who knows what to look for, what questions to ask, and how to help you navigate the process with confidence from start to finish.
Condo living can offer a lot to love: lower maintenance, shared amenities, and a lifestyle that’s often easier to manage. But condos also come with an extra layer of considerations that many buyers and sellers don’t think about until they’re already under contract.
From HOA finances to upcoming repairs, knowing what questions to ask early can help you avoid surprises, delays, or financing issues later on.
Below you’ll find some of the biggest things buyers and sellers should keep an eye on when navigating a condo transaction, plus key condo rule changes to keep in mind.
For Sellers: Gather Information Early
One of the best things a condo seller can do is prepare documentation upfront. The sooner potential concerns are identified, the smoother the transaction tends to be.
Important questions to consider include:
- Are there any special assessments that have been passed, discussed, or are still pending?
- Has the association dealt with any lawsuits?
- Have there been recent leaks, storm damage, or major repairs?
- Are HOA fees expected to increase soon?
- Has the building undergone any recent engineering inspections?
It’s also important to know whether the building is professionally managed or self-managed, who oversees the HOA, and who carries the master insurance policy.
If your building is older, buyers and lenders may look even more closely at the condition of shared spaces like balconies, roofs, hallways, and pools.
HOA Documents Matter More Than You Think
When a condo goes under contract, buyers typically review a package of HOA documents that can reveal a lot about the health of the building and association.
These documents often include:
- HOA meeting minutes
- Annual budgets and financial statements
- Reserve studies
- Engineering reports
- The resale package required by the association
Meeting minutes, in particular, can provide insight into issues that may not be obvious during a showing, including discussions about repairs, maintenance concerns, or future projects.
For Buyers: Don’t Skip the Building Review
When buying a condo, it’s not just the unit itself that matters. The financial health and condition of the entire building can impact financing, insurance, and future costs.
Before writing an offer, buyers should:
- Talk with their lender about whether the building qualifies for conventional financing.
- Review recent HOA meeting minutes.
- Understand whether there are any pending repairs or assessments.
- Look closely at the association’s reserve funds and long-term maintenance planning.
One major issue lenders are increasingly focused on is unfunded repairs. If a building needs significant work and doesn’t have enough reserves to cover it, financing can become much more difficult.
Special Assessments Can Change the Numbers Quickly
A condo that appears affordable at first glance may come with additional costs if the association is planning major repairs.
Buyers should find out:
- Whether any special assessments are pending or recently approved.
- Who will be responsible for paying them.
- How much reserve funding the HOA currently has.
- Whether HOA dues have been rising significantly year over year.
Rapidly increasing dues, low reserve funds, or large per-unit repair costs can all be signs that future expenses may be coming.
Red Flags to Watch Out For
While every condo association is different, there are a few warning signs worth paying attention to:
- Large unfunded repairs
- Pending litigation involving the association
- Failed fire or safety inspections
- Frequent water remediation issues
- Sellers or associations unwilling to share reports or documents
These don’t always mean a deal should fall apart, but they do signal that buyers should ask more questions and work closely with their lender and real estate agent.
Condo Rules and Financing Requirements Are Changing
There are also several upcoming industry changes that may affect condo financing and budgeting in the years ahead, including:
July 1, 2026
Master insurance per-unit deductible capped at $50,000
August 3, 2026
Every condo loan in a building over 10 units requires Full Review
January 4, 2027
HOA reserve minimum rises from 10% to 15% of the annual budget
As lending guidelines continue to evolve, having the right professionals involved early in the process can make a significant difference.
Whether you’re buying your first condo, selling a longtime home, or investing in a vacation property, understanding the financial and structural health of the association is just as important as loving the space itself.
A Portside agent can help you interpret HOA documents, identify potential concerns before they become roadblocks, coordinate with lenders and association managers, and guide you through every step of the transaction. Whether you're buying or selling, our team is here to help you make informed decisions and navigate the condo market with confidence!
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