A member's guide to HOA governing documents.

All associations have the following basic set of governing documents (listed in order of hierarchy) that dictate how a community may be governed:

1. Federal and state law — unless the statute defers to the association's documents.
2. Declaration of Covenants, Conditions & Restrictions (CC&Rs) — the rights and responsibilities of each member and of the HOA to its members, including architectural restrictions, property-use restrictions, maintenance standards, and more.
3. Articles of Incorporation — basic information about the HOA, including the name of the association, its location, and its purpose.
4. Bylaws — the technical rules and procedures for things like voting, the election of directors, and term limits.
5. Rules and Regulations — details how the CC&Rs are interpreted and implemented.

These documents are legally binding based on the implied contractual agreement you accept as a homeowner member of the community. It is very important that prospective buyers carefully review each of them, because buyers are contractually bound by them once they acquire ownership — and violating the terms may constitute a breach of contract.

Most states have specific disclosure laws that require sellers to inform prospective purchasers about implied contractual obligations — such as payment of maintenance fees and restrictions limiting the use and occupancy of a property. In fact, most states have specific Disclosure Statements and Resale Disclosure Certificates, issued by the state or by real-estate associations, that summarize the information prospective purchasers are entitled to have. Here are a few examples:

• Arizona Revised Statutes § 33-1806 (§ 33-1260 applies to condominiums) obligates the seller of a property subject to covenants to deliver to a purchaser the association's governing documents and the information required by subsection A.
• California Civil Code § 4525 provides that an owner selling a property within an association must provide specific information and documents to the prospective purchaser as outlined in the statute.
• Florida Statute § 720.401 (§ 718.503 for condominiums) provides that a prospective purchaser must be presented with a homeowners' association Disclosure Summary before executing the contract of sale.

These statutes protect the interests of prospective purchasers considering ownership of properties governed by homeowners associations. Buyers have the power to rescind the purchase contract if the seller fails to comply with state disclosure laws.

Members of homeowners' associations have the right to review and copy the association's documents — also known as the "official records" — after a written request. This right stems from the contractual provisions of the association's governing documents and from state law.

These are the documents generally considered the official records of the association:

• All documents provided by the developer, such as community maps, plats, plans, land surveys, and permits.
• Recorded Declaration of CC&Rs, Articles of Incorporation, Bylaws, and any amendments.
• Rules and Regulations.
• All board and membership meeting Notices and Minutes, and related documentation.
• Membership roster including members' mailing addresses, units/lots, and telephone numbers.
• The association's insurance policies.
• The association's third-party agreements or contracts.
• Copies of Judgments, Liens, or any encumbrances recorded against, or on behalf of, the association.
• Recorded instruments related to all properties owned by the association.
• Documents related to membership voting and the election of officers and directors, such as Ballots, Proxies, Notices, and Minutes.
• All rental records of the association, if it acts as a rental agent.
• All association accounting records for the past 3 years, including but not limited to:
  1. Records of receipts and expenditures,
  2. Current account ledgers for each member reflecting name, amount and due date of each annual assessment, payments made, and current balance due,
  3. All association financial reports, reviews, and audits,
  4. All contracts for work to be performed, including bids,
  5. Invoices for purchases made by the association.
• Other association official records relating to the operation and management of the community.
• All association insurance records.

Some states have far more developed laws on a member's right to inspect documents than others. California, Florida, and Arizona laws are quite detailed, whereas states like Mississippi, Missouri, Oklahoma, and Wisconsin may simply apply the principles of contract law.

The list below is not exhaustive — it includes just some of the laws concerning the owner's right to inspect the association's documents. To find your state's applicable laws, browse HOA laws by state.

Many prospective buyers are surprised that there are costs associated with obtaining copies of HOA documents. After all, how can you decide whether you are willing to agree to the rules without reading them?

Some states limit the amount an association can charge to prepare and reproduce documents. For example, under A.R.S. § 33-1806(C), Arizona caps an HOA's disclosure fees at an aggregate of $400. Does your state have a similar limitation? Explore your state laws to find out.

In most states, when a property is under contract, the seller is required to provide the buyer with the HOA's governing documents for full disclosure — and the seller is typically responsible for the costs of producing those copies.

There are a few savvy strategies owners or prospective buyers can use to avoid paying hefty fees:

• Contact your association directly. Most associations provide online access to community documents if you are an existing member.
• Talk to your neighbors.
• Send your association a written request for inspection of its official records — use our free sample letter below. As an owner, you have the right to inspect and copy the association's documents.
• Search the public records of your county recorder's office. The association's documents must be recorded there to be enforceable.
• If you are selling your home, you are only obligated to provide the documents listed under your state's statute. Request a list of the documents in the "Resale Package" and the fees for each, so you can reject documents you are not legally required to disclose.

Before purchasing a property governed by a homeowners association, obtain and review the documents that show how the association functions and the challenges you may face as a member. For example, most associations prohibit commercial vehicles, boats, RVs, on-street parking, basketball hoops, exterior alterations, rentals, and more. Before purchasing, be sure to obtain and review:

• All documents provided by the developer (community maps, plats, plans, land surveys, permits).
• Recorded Declaration of CC&Rs, Articles of Incorporation, Bylaws, and any amendments.
• Rules and Regulations.
• Reserve Study.
• Architectural Guidelines.
• Rental Restrictions.
• Age Restrictions.
• The history of lot/unit violations.
• Account statement for the lot/unit starting from a zero balance, to determine any unpaid fines, costs, interest, or attorney fees.
• Notices of past-due assessments (if any).
• All board and membership meeting Notices and Minutes for the past 2 years.
• The association's insurance policies.
• Copies of Judgments, Liens, or any encumbrances recorded against the property.
• Financial statements, budget reports, and special assessments — to see whether the association has operating and savings accounts and has saved funds to avoid special assessments.
• For condominiums, building issues such as heating and cooling equipment, roofs, and demising windows and walls — overlooking the physical condition can create financial burdens, so identify long-term repairs.
• Other association official records relating to the operation and management of the community.

After obtaining and reviewing the documents above, carefully consider the following questions:

• Does the association have capital reserves for common-element repairs?
• What is the condition of the condo infrastructure?
• Can you afford the HOA fees?
• Is there a limit on how high the HOA can raise fees?
• What does the HOA fee cover?
• Does the HOA have reserve funds?
• Are there any anticipated special fees?
• How is liability assessed and allocated for common expenses of HOA members?
• Does the HOA have fire insurance?
• Are you able to fulfill your maintenance and repair obligations?
• Are you willing to comply with all restrictions?
• Are you comfortable with and willing to accept the enforcement process and policies?

The decision to purchase within an HOA requires many considerations. When you become a member, you enter a legally binding contractual relationship that requires you to fulfill certain responsibilities and follow all rules.

The best way to avoid fines and disputes is to be fully aware of the rules and restrictions you are agreeing to by purchasing the property — remember that membership is not optional, it is automatic — and to make an informed decision about whether you are willing to comply.

Use this template to formally request inspection of your association's official records. Fill in the bracketed fields, keep only the document categories you want, and send it by certified mail. Click Download for an editable Word copy you can fill in and print.