March 27, 2009 2:00 am

Condo Buyers Deal With Homeowner's Association (HOA)

Condo owners in Portland are some of the ones feeling the most pain in this housing market because condo inventory is excruciatingly high and getting mortgages to buy condos is also more difficult compared to houses.

That said, there are condo buyers in the real estate market. If you are one, due diligence is important specific to the homeowner's association (HOA). Prior to completing a purchase, a condo buyer should review the HOA, bylaws, minutes, and other important documents. Will the community be subject to special assessments? Are there big maintenance projects scheduled? What is the new buyer buying into?

Documents a new homebuyer should consider requesting and making subject to the buyer's approval include:

* All Declarations of Covenant, Conditions, and Restrictions (CC&Rs)
* Bylaws
* Minutes from the Condominium Owner's Association (COA) and any special committees formed by the COA for the 12 months preceding the sale
* Any documents pertaining to any claims, controversies, disputes, demands, actions or suits brought on behalf or against the COA
* Documents relating to existing or anticipated assessments, including special assessments

And here's a video from Texas regarding the problems many homeowners are having with a HOA.