One of the most important aspects of condo living is the relationship you’ll have with your Homeowners Association (HOA) or Condo Owners Association (COA), which is the entity in charge of managing and regulating your building and community. These associations dictate policies that directly affect you as a homeowner; this is why it’s so important to know the right questions to ask a COA before buying a new condo.

In our years of experience serving clients buying a condo in Miami’s real estate market, we’ve come across many buyers who, like you, might be wondering what’s fair game to ask. First, an experienced and licensed real estate agent in your city is one of your biggest allies before you put in an offer. They often will already know a lot of insider information about a building from past and current owners and clients. And that knowledge can prove invaluable.

However, we also advocate for you as a condo buyer to be as aware and educated as possible when making a condo purchase and understand what’s going on in the building and how it is being managed. So, to help you, we’ve compiled a list of seven key questions and answers that every Miami or South Florida condo buyer should know before purchasing a property in a community with a Homeowner’s Association or a Condo Association.

— First, Let’s Cover the Basics About HOAs and COAs

What Are the Specific Functions of an HOA or COA?

If you’ve never lived in or bought in a private residential community, the Homeowner’s Association or Condo Association represents homeowners in living spaces such as condominiums, townhouses, gated communities, or any planned community of private homes. The main difference between the two entities is that one applies when there are single-family homes and the other when there are—you guessed it—condos! Here, we’ll use both terms interchangeably, despite their slight differences. In Florida, HOAs are for communities with homeowners who own their homes and lots, while COAs are for communities with only condos. Both HOAs and COAs will usually offer shared amenities like playgrounds, pools, fitness centers, trash pickup, and landscaping.

Once you purchase a condo, you automatically become a member of the Condo Association. And like any small company, the Condo Association is governed by a board elected by the homeowners through a voting process. 

Normally, one of the primary tenets of an HOA or Condo Association is the collection of monthly maintenance fees from each homeowner to cover the ongoing maintenance, management, and insurance of the property, including all aspects of the land and building(s), as well as all amenities and common areas used by homeowners, residents, and guests. 

These fees will vary significantly based on your location, the type of property you have, what the association is responsible for, and the amenities offered. HOA fees in Miami may range from only a few hundred dollars to thousands of dollars per month, depending on several factors, such as the size of the unit, amenities, level of luxury, staff and services, and location of the property. HOA fees can also be described as a dollar per square foot amount. For example, many new luxury Miami preconstruction projects are estimating HOA fees to be between $1.20- $2.50 per square foot of the unit size, per month. 

The HOA is also responsible for complying with city codes and regulations, building inspections, insurance, and legal logistics. In Florida, one key responsibility of an HOA is to oversee all planning and compliance regarding tropical storm and hurricane safety, funding reserves, as well as major building maintenance projects. The HOA board also regulates things such as guest and rental policies, whether pets are allowed in the building, parking, and what decorative features are permitted in public areas of your residence. 

Preparing extra HOA questions to ask, such as what other specific matters they tend to, can help you get an idea of what it will be like to live in a specific condo building, how much you can expect to be paying monthly, and what exactly your maintenance fee is covering.

You Should Review the HOA/Condo Documents Before Purchasing

While it may seem daunting to review an impressively thick binder, we encourage our clients to verify that all of these very important documents are complete. A recent law makes it imperative for HOA boards to share these records with every homeowner in the association. If you ask, the current owners will always give you access, since it’s your right as a buyer, or you can ask your agent to help you get them this way. 

The HOA or Condo Docs binder should include the following:

Articles of Incorporation: Because an HOA is a small business, each one is required to file Articles of Incorporation (AOI) with the Secretary of State. These AOIs should be publicly available and contain the name, location, and purpose of the Association.

Association Bylaws: The bylaws define the HOA’s rights and responsibilities and regulate the procedures for enacting future regulations, such as the procedure for electing board members and the responsibility of each. Bylaws may also include terms that dictate such things as:

• The number of members on the board
• Who is eligible to cast a vote for board members
• Term limits for board members
• Frequency of elections
• The number of board members required to vote on a matter to qualify as a quorum

Covenants, Conditions, and Restrictions (CC&Rs): The CC&Rs are extremely important documents you should become familiar with before buying. CC&R provisions, in contrast to zoning ordinances dictated by government entities, are covenants entered into by private parties. For this reason, they may be more restrictive.

The CC&Rs provide general guidance for the community and establish regulations relating to parking, garbage, amenities, and exterior/interior aesthetics. Restrictions may apply on exterior installations such as solar panels, satellite antennas, and hurricane shutters, or on internal installations such as flooring or wall tiles.

The HOA may also restrict pets on the premises, or they may impose size or weight restrictions on pets. Certain business activities may also be regulated in your home if the HOA perceives that activity to be a possible disruption to the community. The CC&Rs may also include restrictions on parties, such as what areas may be used for social activities, and at what hours those areas may be available. They’re also responsible for deciding if any short-term rental restrictions apply to your property. 

In Florida, all HOA’s CC&Rs must be recorded with the county land records. In most cases, CC&Rs are legal, binding documents. Typically, you will be required to sign a document stating that you’ve reviewed the HOA or Condo Association CC&Rs and agree to the terms set forth therein. Upon signing that document, you will be legally bound to the covenant and may face penalties if you violate any regulation in the CC&Rs.

For example, if you own a condo that does not allow short-term rentals, and you have a tenant that is engaging in short-term rentals, the Condo Board or Condo Association may have the right to terminate your tenant’s lease.

Other Rules and Regulations: The HOA rules and regulations are other rules that the board establishes as necessary for the safety and preservation of the community. These may pertain to guest policies, noise, etc. These rules generally vary from community to community, so it’s best to become familiar with them before committing to a purchase.

Financial Documentation: Some of the most important homeowners association questions relate to the building’s finances. Most bylaws permit the HOA or Condo Association board to collect dues from each of the homeowners in the community to cover expenses or to build reserve funds. These dues are typically split uniformly between community members if you are in an HOA but may increase yearly if needed. In a condo, these dues will likely vary based on the size of your unit, which is interpreted to be a larger ownership share. You can watch our video on Florida HOA fees for a more in-depth discussion.

Also, unfortunately, in the past few years, some HOAs have made the headlines for mishandling funds. For these reasons, you must take a moment to review the HOA’s financial documentation to make sure you’re buying into a healthy community.

In 2024, many HOA fees increased in Miami because of a new Florida law that made it mandatory for the board to have sufficient reserve funds to cover structural repairs the buildings may immediately or eventually require. In the long run, this actually benefits homeowners because special assessment requests will be less common in the future and your home and investment will be better protected. And it makes comparing condos and HOA fees much easier and more transparent when condo shopping.

— Now, Here Are the 7 Questions to Ask an HOA Before Buying a Condo

1. How Are Regulations Made and Who Gets to Vote on Changes?

Every year, owners vote to select three to five people to form the Condo Association’s board. These boards make most decisions on things like day-to-day operations, rules, and regulations not specifically delineated in the Condo Docs, hiring property managers, contracts for services, etc. However, any change that will impact the Condo Docs in any way or change them, requires the owners’ majority vote or even a super-majority vote, which is common.

2. Is There an Adequate Reserve Fund for Emergency Repairs?

In South Florida, after the tragic collapse of Champlain Tower South in Surfside in 2021, the Condo Safety Act bill passed in 2023 now requires all HOAs to perform regular structural inspections on their buildings to assess and prepare for maintenance and repairs.

Also, HOAs now have to perform a Structural Integrity Reserve Study designed to ensure that the Association has the “reserve funds required for future major repairs and replacement of the common areas.” These funds are destined for the repair or maintenance of roofs, structural systems, fireproofing and fire safety, exterior painting and waterproofing, plumbing, electrical systems, windows, exterior doors, and other elements over $10,000 that have an impact on the structural integrity of the building. 

Before this law, HOAs weren’t required to check the building’s structure regularly or to adjust their reserve funds for any future maintenance or repairs, or even have a reserve fund. They could vote not to collect reserve funds even though they knew they might need them in the future. This has meant costly special assessments for homeowners, or worse, the building going into disrepair and becoming unsafe.

In line with this new condo act, other crucial questions are whether the building has had its 30-year assessment when the last 10-year study was, and if all construction required has been budgeted, planned, or completed. The answers to these questions could affect your ability to get financing for your condo or could mean expensive special assessments down the road. 

3. How Often Can I Expect My HOA Maintenance Fees to Go Up?

Typically, Condo Association fees increase yearly according to inflation. There have been cases when it fluctuates more than this and, regularly, it has to do with the homeowner’s insurance costs, as master insurance policy is a significant portion of the fees you pay.

In most cases, there is no limit on how much dues may be increased to comply with the needs of the annual Association budget. For example, in 2023 they increased significantly in part because of incremental insurance costs after the 2022 hurricane season. In the state of Florida, HOA board members are authorized to act on behalf of the HOA without requiring a member vote to increase dues.

4. Are There Any Lawsuits or Owner Complaints Currently in Litigation? 

If any owners in the community are unhappy enough to file a lawsuit or formal complaint about any issue in the building or community, it’s best to know about it before you buy. If you learn that several owners have filed complaints, or there is a pending lawsuit against the HOA, this should be a sufficient red flag to warrant further understanding of the lawsuit. Depending on the matter, this could also affect your ability to get financing for your condo.

5. May I Review the Minutes From Previous HOA Board Meetings?

A great way to get a sense of how the HOA board works and what happens at board meetings is to request permission to attend one or to request a copy of the minutes from a meeting held within the past six months. There, you’ll be able to see the type of topics they typically discuss, as well as the result of any voting processes regarding any of the Association’s duties.

6. Ask About Specific Rules that Are Important to You

If after reading the condo docs you are still not clear about a specific rule that interests you, it’s better to ask about it. For example, you might be buying a property to rent while you’re not there or as a passive income, however, some Condo Associations don’t allow you to rent during the first year, or at all. Same thing if you smoke, maybe your HOA doesn’t allow it even in the units because of the odor smoking will create. 

Consider your lifestyle and needs and ask the necessary questions to make sure you are covered. It’s better to be safe than sorry!

7. What Are the Specific Conditions of the Unit You Are Looking to Purchase?

When working with a trusted real estate agent, they will give you all the specifications about the unit. However, before signing, you should confirm everything with the Condo Association. Things like whether the unit has storage, one or two parking spaces, and which amenities or services the fees cover, are all important questions to ask the HOA before buying a condo.

One bit of advice we give our clients, if you want to go one step further, is to ask the Association for the repair or complaint history for the specific unit you’re considering to see if there’s anything that would affect you, like noisy neighbors or an ongoing leak.

— Now, You’re Ready to Call Your Agent and Go Condo Hunting!

Now that you know what basics to cover, be sure to take sufficient time when home-hunting to do your due diligence on the Condo Association before you fall madly in love with any dream home or property. Living with an HOA is like getting into a marriage. It’s best if your goals and expectations are addressed beforehand, and if you agree on the essentials. 

A harmonious relationship with a great Condo Association can provide the peace of mind you need to know that your home is being managed, protected, and maintained by a solid, robust entity. It’s always best to know which questions to ask your HOA before buying, as well as to enlist the help of a knowledgeable and experienced realtor who knows the building and area, so you can make sure that you’re as happy with it as you are with the home itself!

If you would like to contact a specific HOA, check out our list of Miami HOA phone numbers, or if you have any questions regarding this topic, call us so we can immediately help you get the answers you need to move forward with your condo purchase with clarity and facts. After years of working in the industry, we’re your most trusted ally when buying or selling your property!