The Documents to Request
In NC, sellers are required to provide certain HOA disclosures. Request all of these before your due diligence period expires.
CC&Rs (Covenants, Conditions & Restrictions)
What it is: The foundational governing document — the rules of the community.
What to look for: Pet restrictions (breed/weight limits, number of pets), rental restrictions (can you rent the home if needed?), exterior modification rules, age verification requirements, parking rules, flag/sign policies.
Red flags: Ambiguous language around age exceptions. Strict rental prohibitions if you might need flexibility. Pet breed restrictions that affect your animals.
Bylaws
What it is: How the HOA operates — meeting schedules, voting procedures, board elections, how fees are set.
What to look for: How are fee increases approved? Can the board raise fees without a homeowner vote, or is there a cap? How are special assessments authorized?
Red flags: Boards with uncapped authority to raise fees. Lack of homeowner voting rights on major decisions.
Current Budget and Financial Statements
What it is: The HOA's income and expense statement for the current year.
What to look for: Is the HOA operating at a surplus or deficit? Are revenues covering expenses? What are the largest expense categories?
Red flags: Operating deficit (spending more than dues revenue). Deferred maintenance showing up as a liability. Unusual one-time expenses with no explanation.
Reserve Fund Study and Current Reserve Balance
What it is: The most important financial document for established communities.
What to look for: Reserve funding percentage — aim for 70%+ funded. What capital items are in the reserve (roofs, pool equipment, clubhouse systems, paving)?
Red flags: Below 30% funded is a serious red flag in an established community — means special assessments are likely. No reserve study at all in a 10+ year old community. Major capital items (pool, roofs) coming due in the next 3–5 years with insufficient reserves.
Meeting Minutes (last 12–24 months)
What it is: The actual record of what the HOA board discussed and decided.
What to look for: Any discussion of special assessments. Maintenance issues that keep recurring. Disputes with vendors or homeowners. Management company changes.
Red flags: Repeated discussion of the same unresolved maintenance issue. Special assessment votes. High turnover in management company.
Pending Litigation or Disputes
What it is: Any lawsuits involving the HOA.
What to look for: Is the HOA suing anyone or being sued? Construction defect litigation (common in newer communities) can affect insurance and assessments.
Red flags: Unresolved construction defect litigation. HOA being sued by homeowners over fee disputes.
Current Fee Amount and Any Pending Changes
What it is: The actual monthly fee you'll pay — confirm it matches what was advertised.
What to look for: Is the fee going up at the start of next year? Has the board approved a fee increase not yet in effect? What are the fee tiers if multiple exist?
Red flags: Approved but not-yet-effective increase larger than the standard inflationary bump.
Specific Questions for Established Triangle Communities
For resale purchases at Carolina Preserve, Carolina Arbors, and Fendol Farms — communities 10+ years old — ask these directly:
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