closing

HOA dues

HOA dues are regular fees that owners in a planned community or condominium pay to a homeowners association to cover maintenance of common areas, shared insurance, amenities, management, and reserve funds. Dues are usually paid monthly, quarterly, or annually and are set by the association's budget. Unpaid dues can become a lien on the property. At closing, dues are prorated between buyer and seller.

Exam tip
HOA dues are prorated like taxes. Lenders count them in the housing expense ratio, and unpaid dues can become a lien against the unit.
Example
A seller prepaid $900 quarterly dues for July through September and closes August 15. The buyer reimburses the seller for the remaining half-month and September.

Related terms & state variants

Sources

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Last verified: 2026-10-23