11 Tips When Buying Into An HOA

Mike Kosor
Sep 20
6 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 already bought and didn’t look closely.

Covenants and restrictions (CC&Rs), rules and regulations, and community or “house rules” are lengthy and, frankly, boring. Expect them to seem ambiguous and hard to understand — because they are. But read them anyway. Don’t buy without understanding your obligations and potential risks.

To be clear, I am not an attorney. If you have concerns, consult one and be specific about your issues. Do not simply accept the line, “They’re all alike — you’ll be fine.” Expect that finding a good attorney will not be easy. If you do find one (or believe you are one), let us know. We’d like to be able to offer referrals to our readers.

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.

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.
Reserve study: Nevada requires one every five years, but boards should address reserves annually in the budget.
- What is the plan for using the fund?
- Is the fund adequately covered?
- Read the study to see what “major components” you will effectively own — 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.

SHCA Deserves Its Freedom