Condo & HOA buyer guides

A special assessment is a one-time charge your HOA bills every owner — on top of monthly dues — to cover a cost the reserve fund cannot, such as a major repair (roof, elevator, plumbing, balconies) or an insurance shortfall. They commonly run from a few hundred to tens of thousands of dollars per unit, and owners generally cannot opt out.

A reserve study is a professional forecast of an HOA’s major repair costs and a savings plan to pay for them. "Percent funded" compares the cash actually in the reserve to what the study says should be there — above ~70% is considered strong, 30–70% fair, and below 30% weak, the range where special assessments and dues spikes become likely.

SB-326 is California’s balcony-inspection law for condos (Civil Code §5551). It requires HOAs with three or more units to have a licensed engineer or architect inspect exterior elevated elements — balconies, decks, walkways and stairs more than six feet above ground and built of wood — by January 1, 2025, and every nine years after. For buyers, a failed or overdue inspection can trigger costly repairs and special assessments.

Compare the total cost of borrowing over the years you actually expect to keep the loan: the interest you will pay in that window, plus the lender’s own charges (origination, underwriting and discount points, minus lender credits). Ignore third-party costs like title and escrow, which barely differ between lenders. The offer with the lowest rate frequently loses this comparison, because the rate was bought with points you pay on day one and recover only slowly.