Association Documents

For this article, both condominiums and townhouses will be referred to as condos.  Oahu has more condos than single-family homes due to the island’s finite land supply.  In some neighborhoods, developers decided to create a neighborhood under a condominium regime to avoid some of the City and County of Honolulu’s red tape involved with sub-dividing land.  Condos are generally more affordable than single-family homes and make up a bulk of entry level housing.  The Oahu median price for a single-family home in October 2021 was $1,000,000 and for a condo was $500,000.  Condos make up the bulk of entry level homebuying opportunities for first-time home buyers as a result.

Condos add a level of complexity to owning a home that first-time buyers may not appreciate and adds an additional step to a buyer’s due diligence.  Oahu’s standard purchase contract dedicates a page to the documentation disclosure and review requirements before a buyer can successfully complete a condo sale.  The list of documents includes:

• The last three approved Board of Director meeting minutes
• Articles of Incorporation and Amendments
• Bylaws and Amendments
• Copies of all pending litigation complaints filed against the association
• Covenants, Conditions, and Restrictions (CC&Rs)
• Current association financial statements
• Current and/or proposed budgets
• Current House Rules
• Declaration and Amendments
• Design standards and guidelines
• Insurance summary
• Lender’s disclosures
• Last annual meeting minutes
• Planned community documents
• Project information form (RR105c)
• Reserve study or summary
• Subdivision and/or title documents

Companies exist simply to collect and distribute the vast documentation describing a condo association’s operation and efficiency.  Buyers should carefully review the documents before committing to a condo purchase because the association fees paid are only the financial burden that a buyer commits to when closing a sale.  There is much more to consider than just the monthly cost of joining a condo association and a first-time buyer should carefully read the documents to understand the implications.