NH Condo & HOA Documents: A Buyer's Review Checklist

A condominium's purchase price and monthly fee are only the starting point. The documents explain what you own, what the association maintains, what you may do with the property and how major expenses will be shared. Review those obligations while you still have time to make a decision.

Identify the legal ownership structure

A townhouse describes a building style; it does not establish the ownership form. A detached home can be a condominium, and a fee-simple house can have association obligations. Obtain the deed, recorded declaration and relevant plans rather than inferring the structure from a listing label.

New Hampshire's Condominium Act, RSA 356-B, addresses condominiums. Do not assume every homeowners association, road association or cooperative follows the same statutory rules. Ask your attorney which documents and law govern the property you are considering.

Request resale information early

For a condominium resale by someone other than the declarant, RSA 356-B:58 gives a prospective unit owner rights to obtain specified association information before the contract date. The statute includes a written-request process with a 10-day response provision. Coordinate your request and contractual review protections early; do not assume a generic inspection period covers everything.

The statutory information includes anticipated capital and major maintenance expenditures, reserves, the latest available annual income statement and balance sheet, certain litigation and insurance information, governing documents, fees and special assessments from the prior three years. A developer sale can involve different disclosure requirements. Ask counsel to distinguish the transaction types.

Read the declaration with the plans

Locate the boundaries of the unit and identify common and limited common elements. Then trace responsibility for the components that are expensive or essential to your use:

• Roof, siding, windows, exterior doors and decks.
• Heating, cooling, plumbing and shared utility lines.
• Driveways, parking spaces, garages and storage areas.
• Drainage, retaining walls, docks and other site improvements.
• Maintenance access and approval rights.

Separate the right to use something from ownership and maintenance responsibility. A parking space shown during a tour might be deeded, assigned, leased or available under a rule. Get the actual documentation for your unit.

Compare the budget, cash and capital plan

The operating budget shows planned income and routine expenses. Financial statements show what has happened and what the association holds or owes. A reserve study or capital plan considers major components and future work. These documents answer different questions and should be read together.

• Which projects are approaching, and what cost estimates support them?
• How much cash is available for those projects, and is any of it already committed?
• How do planned contributions compare with the work schedule?
• Are loans, special assessments, insurance claims or unpaid dues affecting the plan?
• Who prepared the analysis, and what has changed since it was prepared?

There is no single reserve percentage that proves every association is financially sound. A lender's project-eligibility test is also not a building-condition warranty. Ask the lender to review the project early and ask a qualified professional to evaluate major unresolved capital or structural questions.

Read minutes for decisions, not reassurance

Request available recent board and owner-meeting minutes, notices and project updates. Look for recurring water intrusion, deferred repairs, insurance changes, pending votes, disputes and borrowing plans. Follow an issue from its first appearance to a documented resolution.

A verbal statement that “the roof is handled” is incomplete. Ask whether work is proposed, contracted, completed, paid for or subject to a special assessment. If records are missing, obtain an explanation and decide with your advisers whether the remaining uncertainty is acceptable.

Understand the insurance boundary

Obtain the master-policy information, deductibles and responsibility provisions. Have your insurance professional review how the association's coverage coordinates with the coverage you would buy. Clarify responsibility for interior improvements, personal property, liability and any relevant loss-assessment coverage.

For a coastal or waterfront condominium, separately investigate flood coverage and exclusions. Do not assume a master policy, a unit policy or the monthly fee covers every water-related loss. Our Seacoast waterfront condo guide provides a property-specific checklist.

Test your intended use against the rules

Check rental restrictions, lease duration, occupancy limits, pets, parking, business use, renovations and approval procedures. Ask about adopted amendments and pending proposals. Verify any separate municipal restrictions too; association permission does not establish compliance with town rules.

If a particular use is essential, identify the written provision that permits it. Do not rely on another owner's past practice, an informal email or a seller's memory as a substitute for document review.

Resolve assessments and closing obligations

Ask for the amount, due dates and status of any assessment affecting the unit, along with unpaid fees, transfer charges and outstanding violations. Have your attorney or settlement professional confirm how the purchase contract allocates those obligations. “Paid by seller” should be documented clearly enough to address installments due after closing.

Before your review deadline, keep a short issue list: the question, the supporting document, who will answer it and when. Bring legal interpretation to an NH attorney, financing approval to the lender, coverage to the insurer and physical-condition concerns to the appropriate inspector or engineer.

Plan your New Hampshire purchase

Contact Michael Bean to discuss a property or your Seacoast search. Start with the NH Seacoast resource hub and town comparison guide.