11 Tips When Buying Into An HOA

Sep 20, 2025

7 min read

NVHOAReform touches on many things owners in HOAs or condos (COAs) should understand. This post outlines what to look for in an association’s CC&Rs — the contracts and governing documents — before you buy.

Or, if you’ve like many HOA owners, have already bought and didn’t look closely.

At the outset, understand a hard truth: getting a complete or reliable picture of a community’s financial condition, and especially how it is actually governed, is not easy—arguably not even possible—no matter how much advance research a buyer undertakes. The problem isn’t that HOAs are inherently bad- they are not. It’s that buyers — and even current owners — see well-kept grounds and appealing amenities against a backdrop of incomplete information, forced to make judgments long before they can observe how decisions are made or how power is exercised. As explored in the NVHOAReform post Buying Blind, most people purchase into a community with little more than governing documents and assumptions, navigating a system where meaningful transparency is the exception rather than the rule.

A community’s covenants and restrictions (CC&Rs), rules and regulations, and “house rules” are lengthy and, frankly, boring. Expect them to seem ambiguous and hard to understand — because they are. And while they will never give you a complete picture of how a community actually functions, they do provide an essential snapshot of the legal framework that will govern your property and serve as the foundation of your investment. These documents shape daily life in many communities. Awareness and preparation are the best defenses against unpleasant surprises. Don’t buy expecting complete certainty, but do insist on making the decision with as much information as you can reasonably obtain about your obligations and potential risks.

To be clear, I am not an attorney, and nothing here is legal advice. If you have specific concerns, you may choose to consult an attorney and be precise about the issues you want reviewed. But understand why this is not a realistic solution for most buyers. It is often impractical—sometimes impossible—to obtain a legal opinion that meaningfully predicts how a community will actually be governed. Governing documents can be analyzed on paper, but they do not reveal how discretion is exercised, how rules are enforced, or how power is used in practice. Legal review cannot substitute for transparency that the system itself does not provide.

That does not make diligence pointless. People rarely turn over their retirement savings to a financial broker without doing some research, even knowing that no amount of vetting can eliminate risk or predict future performance. Buying into a community is similar: expect the information available will be incomplete but reviewing was it available carefully is still the best way to avoid obvious hazards and make an informed decision.

Key Things to Review

1. The Rules — BE SURE YOU CAN LIVE WITH THEM?

Pets, parking (especially RVs, boats, and street parking), home businesses (child care, hours of operation, etc.), rentals (including Airbnb).
Architectural rules: paint colors, solar panels, drought-tolerant landscaping, additions.
Ask more than one current resident how the “ARC” process has worked for them — including costs and delays. If your property is subject to multiple HOAs (see #5), expect different rules at each level and duplicate fees.

Here is a short article entitled 8 Hidden HOA Rules That Could Threaten Your Homeownership worth reading.

2. Fees, Assessments & Reserves

What are the regular assessments?
- How much, and how often have they increased?
- Are you prepared to pay the assessments in 5, 10 years at the current rate of increase?
How does the HOA determine its annual budget? Look for transparency and owner input — or lack thereof.
Has the HOA levied special assessments? This is big. If so, understand why and when. Expect nominal or evasive answers.
HOAs are supposed to maintain reserve funds for major repairs like roofs, roads, and elevators. But many operate with dangerously low balances. Underfunded reserves are one of the biggest red flags in community finances.
Nevada requires a community conduct a reserve study at least once every five years. But do not stop here. Boards should address reserves annually in the budget. Look for:
- What is the plan for using the fund?
- Is the fund adequately covered?
- Look for red flags like recent special assessement. These so called "one-time fees" can run into the thousands and recure.
Read the most recent reserve study. See what “major components” the community you will effectively own and what that will cost -- it may surprise you.

3. "Prevailing Party" Provisions

Almost every set of governing documents includes prevailing party provisions. They carry huge implications you need to understand.

4. Voting Allocations

Check how votes are distributed. In most HOAs, every lot has one vote; in others, larger lots or different product types get more.
If the declarant (developer) is still in control, look for “weighted” voting rights and when they apply.
Ask: When does voting shift fully to homeowners? If you get a vague answer like “when building is completed” — warning. (See #8 and #9).

5. Master HOAs & Sub-Associations

Many communities have layered HOAs: a “master” association plus smaller “sub” associations.
This means you may pay two sets of dues and be subject to two sets of rules.
Ask: Which master association controls my property, how much are its fees, and how do its rules differ from my sub-HOA?
Also ask how voting works at the master level — owners often have little direct influence.

6. Board Powers & Governance

How directors are elected and recalled.
Do directors provide a method- typically email- you contact them directly?
Notice and access to meetings. This is big.

Doesn't sound right??
- If regualar board meetings are “virtual only” — warning bells.
- Are board decision made by email? -- more bells
- Do agenda changes occur last minute? --more bells
- "Workshops" used?--more bells
- When do the bells become too loud???
Ask your realtor or, better yet, current owners what they think of the board. Do not underestimate the problems a rouge board can cause.

7. The Manager

Is the community manager hired directly by the board or via contract with a management company? There are pros and cons for each.
What is the turnover for managers and/or the management company if your association is using one? If turnover is high — warning sign, dig deeper.
If your community is under developer control and the manager is affiliated with the developer — RUN.
- The manager, like directors (appointed or elected), owes a fiduciary duty to the owners.
- The problem is when both are connected to the developer. Who is going to identify breaches if they occur?
What are you paying per roof? If the association contracts via a management company, that should be readily available.
If you have questions and/or the skills, you can ask to see the contract.

8. Developer Turnover

Do not assume that because the community is older it’s governed by owners. For example, Southern Highlands Community Association (SHCA) in southwest Las Vegas is more than 26 years old — and the developer still retains control.
Confirm control and ask when it shifts from developer-appointed board members to owners. Once again, if you get a vague answer like “when building is complete” — warning.

9. Declarant Rights

Nevada law allows developers to hold “special declarant rights.”
These rights can include the ability to amend CC&Rs, expand the community, or create new phases without owner approval.
Ask: What specific declarant rights remain in the CC&Rs, and when do they expire?

10. Other Declarant Rights

Search the CC&Rs for terms like “declarant’s rights period” or similar phrases. Tip: check the list of abbreviations at the start of the document.
Some CC&Rs extend a developer’s power well after its board control has ended — with significant implications. SHCA is again a good example. It provides the declarant with significant powers while it “owns any property subject to this Declaration.”

11. Conflict Resolution & Enforcement

Look at fine policies and dispute-resolution requirements.
Check if the CC&Rs allow the HOA to collect attorney’s fees aggressively — and how “prevailing party” provisions apply.
Build a picture of the association’s litigation posture:
- Ask for pending litigation (a required disclosure, but you may need to dig).
- Ask about past litigation (not required to be disclosed).
- Check the annual budget for expected litigation expenses.
Review how much the budget anticipates collecting in owner fines.

Note 1: As you use this checklist and do your pre-buy homework, you will likely come to recognize finding comparative data is difficult- becasue there are no reliable benchmarks. Read more: Comparative Benchmarking: The Missing Link in HOA Accountability

Note 2: HOAs have been hard to regulate. Despite Nevada having one of the better structures in place to do so, it has not proven effective. For now-- until the struture is finished and fixed-- understand there’s very little consumer protection against corruption or abuse. Read more: Nevada’s HOA System Remains “Unfinished” and Lawmakers See “HOA” as a Four-Letter Word-Time for Accountability

Bottom Line

Buying into an HOA in Nevada or any state means taking on more than just your mortgage. The CC&Rs and related documents will shape what you can do, how much you’ll pay, and how much say you have.

Take the time to read them closely — especially voting allocations, declarant rights, and master-HOA layers — before you commit.