closing

homeowners association

A homeowners association (HOA) is an organization of property owners in a subdivision, condominium, or planned unit development that manages common areas and enforces the community's covenants, conditions, and restrictions. Owners pay regular dues and possibly special assessments, and unpaid dues can become a lien on the property. Buyers usually receive HOA documents and a resale certificate before closing, with requirements varying by state.

Exam tip
HOA dues are prorated at closing, and unpaid assessments can become a lien. Buyers should review the CC&Rs, budget, and any pending special assessments.
Example
A buyer of a townhouse in a PUD pays $250 a month in HOA dues that cover landscaping, the pool, and snow removal.

Related terms & state variants

Sources

Source verification pending. Confirm current requirements with your state regulator.

Last verified: 2026-10-23