A home in a homeowners association can come with shared maintenance, community rules, architectural standards, and recurring assessments. Those obligations can affect how a property is used, changed, rented, maintained, and transferred.

Before making an offer, a buyer should understand the difference between an HOA and the documents that control the community. The goal isn’t to avoid every restriction. It’s to identify the rules, costs, responsibilities, and potential problems before becoming contractually committed.

HOA vs. covenants and CC&Rs

A homeowners association is the organization responsible for administering a common-interest community. It may collect assessments, maintain shared property, enforce community standards, manage insurance, maintain records, and make decisions through a board or other governing body.

Covenants, conditions, and restrictions, often called CC&Rs, are the recorded rules that apply to the property and community. They’re usually included in a declaration recorded with the county land records. The declaration may establish:

  • The boundaries of the community
  • Common areas and shared facilities
  • Owner and association maintenance responsibilities
  • Assessment obligations
  • Voting rights
  • Architectural controls
  • Leasing and rental restrictions
  • Parking and storage rules
  • Pet, landscaping, fencing, and vehicle restrictions
  • Enforcement rights and remedies

Bylaws generally address how the association operates, including meetings, elections, voting, board authority, notices, and amendments. Rules and regulations provide more detailed requirements, such as parking procedures, trash schedules, pool use, exterior changes, or landscaping standards.

The declaration, bylaws, rules, amendments, and related policies should be read together. A brochure or informal summary isn’t a substitute for the recorded documents.

What CCIOA means for buyers

The Colorado Common Interest Ownership Act, commonly called CCIOA, is a major part of Colorado’s legal framework for common-interest communities. It addresses subjects such as association governance, owner and association records, assessments, enforcement, disclosures, meetings, and certain community procedures.

CCIOA doesn’t replace the community’s declaration or rules. Instead, it works alongside those documents. The exact rights and obligations can depend on the community’s creation date, governing documents, amendments, and the particular issue involved.

A buyer should avoid assuming that a board rule can change a recorded covenant or that every restriction is enforceable simply because it appears in a letter or website post. When a restriction is important to the purchase decision, the recorded declaration and current amendments deserve careful review.

The Colorado Division of Real Estate’s HOA Center provides educational information and resources for owners and prospective buyers.

Documents to request during the contract period

Once a purchase contract is in place, the buyer should use the applicable association-document deadline and review process in the contract. The document package may include:

  • Declaration, CC&Rs, and all recorded amendments
  • Plat, map, or condominium documents
  • Articles of incorporation
  • Bylaws
  • Rules and regulations
  • Architectural or design standards
  • Enforcement and fine policies
  • Collection and records policies
  • Current budget
  • Recent financial statements
  • Reserve study, if one exists
  • Current assessment schedule
  • Approved or pending special assessments
  • Association insurance information
  • Recent owner and board meeting minutes
  • Current contracts and maintenance obligations
  • Open violations affecting the property
  • Pending litigation or construction-defect claims
  • Architectural approvals or denials involving the property

Buyers should confirm that the documents are complete and current. Missing amendments, outdated rules, or incomplete minutes can make it difficult to understand the actual obligations attached to the property.

How the documents follow the property

Recorded covenants generally attach to the property rather than only to the person who originally purchased it. That means a future buyer may become subject to the declaration and other recorded restrictions even if the buyer didn’t personally sign the original document.

The title commitment and recorded land records can help identify declarations, easements, amendments, and other exceptions affecting the property. A buyer should review these documents with the appropriate professionals when a restriction, easement, maintenance obligation, or use limitation could affect the purchase.

A seller’s lack of personal knowledge doesn’t necessarily mean that no restriction exists. The recorded documents and association records provide more reliable information.

Assessments and what dues cover

Regular HOA assessments can pay for services and obligations such as:

  • Common-area landscaping
  • Snow removal
  • Private roads or parking areas
  • Exterior building maintenance
  • Roof or siding maintenance in some communities
  • Shared utilities
  • Common insurance
  • Amenities
  • Management and administrative services
  • Reserve contributions for future repairs

The amount of the assessment matters, but the services and future obligations matter just as much. Review the current budget and determine whether assessments are paid monthly, quarterly, or annually.

Ask whether the association has approved an increase, discussed a proposed increase, or authorized a special assessment. A special assessment may pay for a significant repair or project that regular assessments don’t cover.

The contract should clearly address responsibility for known special assessments, unpaid amounts, violations, and other charges. Buyers shouldn’t assume that an assessment disappears when ownership changes.

Reserve funds, insurance, and major repairs

A reserve study estimates the future cost of replacing or repairing major shared components. Depending on the community, those components could include roofs, roads, siding, exterior structures, drainage systems, mechanical equipment, elevators, or other facilities.

Compare the reserve study with the current budget and reserve balance. Look for deferred maintenance, repeated references to major projects, or a large gap between expected costs and available funds.

Review the association’s insurance information, including the types of coverage, policy limits, deductibles, exclusions, and expiration dates. Determine what the association’s policy covers and what remains the individual owner’s responsibility. The declaration may assign responsibility for interiors, improvements, personal property, certain damage, or insurance deductibles.

Water damage, wildfire, hail, liability claims, and other risks may involve exclusions or high deductibles. These details can affect ownership costs even when the regular assessment appears manageable.

Restrictions that can affect daily use

A property may look suitable for a buyer’s plans but still have restrictions that limit changes or activities. Ask for the exact written requirements for:

  • Fences, gates, and privacy screens
  • Sheds, workshops, and other outbuildings
  • Recreational vehicles, trailers, boats, and work vehicles
  • Parking, guest parking, and garage use
  • Pets, including breed, size, or number limits
  • Exterior paint, windows, roofs, and siding
  • Decks, patios, additions, and exterior equipment
  • Solar panels, battery systems, and satellite equipment
  • Generators and exterior HVAC equipment
  • Landscaping, irrigation, and tree removal
  • Home businesses and client visits
  • Signs, flags, and visible equipment
  • Short-term rentals and longer-term leasing

Water-wise landscaping deserves specific attention in Colorado. Some communities permit xeriscape but require advance approval, defined plant lists, visible design features, weed control, or a certain overall appearance. Others may have irrigation or maintenance standards that affect the cost and design of a low-water landscape.

Solar installations may be subject to architectural review, placement requirements, screening rules, or other standards. Ask whether approval is required and request the current application and review timeline.

Rental and short-term rental restrictions

If future rental use matters, review the declaration, amendments, rules, and written rental policy before making an offer. Look for:

  • Complete rental prohibitions
  • Rental caps or waiting lists
  • Minimum lease terms
  • Owner-occupancy requirements
  • Registration procedures
  • Guest and occupancy standards
  • Parking, noise, and trash requirements
  • Grandfathered rental rights
  • Whether a rental right transfers to a new owner

Short-term rental rules can be especially detailed. Association restrictions may exist in addition to city or county licensing, zoning, tax, occupancy, and safety requirements. Don’t rely on a current owner’s statement that short-term rentals are allowed. Request the written policy and confirm whether it applies to a future owner.

Enforcement, violations, and fines

Review the enforcement policy, notice requirements, cure periods, hearing procedures, appeal rights, and fine schedule. Ask whether the property has:

  • Open architectural violations
  • Unpaid assessments or fines
  • Pending notices
  • A payment plan
  • A lien or threatened lien
  • Repeated enforcement issues
  • Unapproved improvements
  • A dispute with the association

Colorado law includes requirements concerning association enforcement and owner protections. HB22-1137 addresses subjects including notices, opportunities to cure certain violations, fines, collections, and transparency. The current law and the association’s documents should be reviewed together.

Minutes can reveal issues that don’t appear in a property listing. Look for repeated discussions about roof leaks, drainage, insurance claims, construction defects, litigation, delinquent accounts, security, paving, or major repairs.

Questions to ask before making an offer

Before submitting an offer, a buyer can ask:

  1. What is the current assessment and payment schedule?
  2. What services and maintenance does the assessment cover?
  3. Are increases approved or under discussion?
  4. Are there any approved or proposed special assessments?
  5. Does the property have open violations or unpaid charges?
  6. Are there liens, lawsuits, insurance claims, or construction-defect matters?
  7. Is a reserve study available, and when was it completed?
  8. What major repairs or projects are planned?
  9. Are rentals or short-term rentals permitted?
  10. Are there restrictions on fences, outbuildings, RVs, pets, solar, landscaping, or home businesses?
  11. What does the association maintain, and what does the owner maintain?
  12. What are the association’s insurance limits, deductibles, and exclusions?
  13. Can the seller provide the declaration, amendments, rules, budget, minutes, and insurance information?
  14. What is the deadline for reviewing association documents under the contract?

An incomplete answer isn’t confirmation that no problem exists. It’s a reason to request additional records and allow enough time for review.

For a current local snapshot of HOA-related considerations and available properties, contact the team at The Homes and Loans Team or call 719-243-0333. Buyers should use the contract’s deadlines and consult a qualified Colorado real estate attorney regarding legal questions or significant restrictions.

General Education Disclaimer

This article is for general education only. It isn’t legal, financial, or real-estate advice, and it isn’t an offer or commitment to represent anyone. Laws, contracts, association documents, and community rules can change. Readers should obtain advice from qualified professionals regarding their specific circumstances.

Useful Sources

The Homes and Loans Team · Misty Garman, Licensed Real Estate Broker · CO License #FA100084543 · Berkshire Hathaway HomeServices Rocky Mountain, REALTORS · 417 Main St, Canon City, CO 81212 · 719-243-0333