What Is an HOA Review Contingency in Real Estate?

An HOA Review Contingency (also called an HOA document review contingency) gives buyers time to review a homeowners association’s governing documents, rules, financials, fees, and upcoming assessments. If the buyer finds anything unacceptable, they may cancel the contract without penalty during the review period.

✅ How an HOA Review Contingency Works

  • The seller or HOA provides required documents (CC&Rs, bylaws, budgets, rules).
  • The buyer receives a set number of days to review the packet.
  • If the buyer disapproves of the HOA terms, they may cancel the contract.
  • No penalties apply if cancellation occurs within the contingency period.
  • If accepted, the contingency is removed and the contract moves forward.

This contingency protects buyers from unexpected restrictions, fees, or financial problems within the HOA.

📄 What Buyers Review in HOA Documents

  • Bylaws and CC&Rs (Covenants, Conditions & Restrictions)
  • Budget & reserve funds
  • Monthly dues and upcoming fee increases
  • Special assessments (current or proposed)
  • Rules & regulations such as rentals, pets, parking, renovations
  • HOA litigation involving the community
  • Insurance coverage and maintenance responsibilities

These documents help buyers understand the HOA’s financial health and lifestyle restrictions before committing to the purchase.

💡 Why HOA Review Contingencies Matter

  • Protects buyers from unexpected financial obligations.
  • Prevents surprises like pet restrictions or rental bans.
  • Reveals HOA stability through budgets, reserves, and meeting minutes.
  • Gives sellers confidence that buyers are fully informed.
  • Essential in condos, townhomes, and planned communities.

⚠️ Risks & Considerations

  • Seller delay in providing documents can extend the timeline.
  • Buyers may cancel for any reason related to HOA rules or finances.
  • Strong HOAs may require buyer approval—review all requirements.
  • Budget or reserve shortages may indicate upcoming assessments.
  • Some HOA rules may limit short-term rentals, pets, vehicles, or renovations.