What Every Washington Condo Buyer Should Know Before Making an Offer (2025–2026 Guide)

A complete guide to understanding condominium associations, community associations, HOA rules, reserve studies, and Washington’s updated condo laws.

Buying a condo in Washington State means buying more than your individual unit. You’re purchasing into a larger shared structure called a community association. In Washington, most condominium associations, HOAs, and townhome associations fall under this umbrella term.

Because of that, you’ll see the terms condominium association, HOA, and community association used interchangeably throughout this guide. They all refer to the governing organization that manages the shared property, financials, rules, and long-term planning.

With major updates to Washington condo laws taking effect in 2024, 2025, and 2026, buyers need a clear understanding of what to review before writing an offer. This guide outlines the essential steps, supported by nearly two decades of real-world experience reviewing community association documents, reserve studies, CC&Rs, budgets, and resale certificates.

Before You Begin: Why Work With a Broker Who Understands Community Associations

I’ve spent almost 20 years behind the scenes of some of Seattle’s highest-producing real estate teams, specializing in the operational side of real estate and community associations. My background includes reviewing:

• Reserve studies

• Community association budgets

• CC&Rs and house rules

• Resale certificates

• Insurance policies

• Special assessments

• HOA governance structures

Because condo buyers are purchasing into a shared financial and governance system, understanding the association is just as important as understanding the unit. My expertise helps you navigate the pieces most buyers never see.

1. Know What You’re Actually Buying

When you purchase a condominium, you are buying:

• Your individual unit

• A proportional ownership share in the community association

• Responsibility for monthly dues

• Long-term participation in the community’s financial planning

• An obligation to follow the governing documents

A condo purchase is both a real estate decision and a community association decision. The health of the association impacts affordability, lifestyle, and resale value.

2. Review the Community Association’s Financial Health

A strong community association is financially stable and plans ahead for major repairs.

Operating budget

Review for:

• Balanced annual budgets

• Predictable dues increases

• Reasonable expenses

• Low owner delinquencies

If dues have been kept too low for too long, the association may be deferring maintenance.

Reserve fund balance

Reserves fund long-term repairs such as:

• Roof replacement

• Siding and windows

• Elevators

• Plumbing and sewer systems

• Parking lots and paving

• Decks, balconies, and railings

Low reserves can be a sign that special assessments may be coming.

Reserve studies (major changes in 2024–2026)

Washington law requires most community associations to update and review reserve studies regularly.

2024–2025 requirements:

• Reserve study updates every 3 years

• Annual review required

• Lenders increasingly reviewing reserve data

2026 requirements:

• More formal reserve funding planning

• Increased transparency in long-term financial obligations

• Many associations expected to increase dues to comply

Understanding reserve study compliance helps buyers evaluate long-term financial risk.

3. Ask About Special Assessments

Special assessments are additional payments owners must make when reserves are insufficient to cover major repairs.

Before writing an offer, ask:

• Are there pending or approved special assessments?

• What repairs are anticipated in the next 5 years?

• Has the association used assessments frequently?

• Has maintenance been delayed due to limited funding?

Assessments can significantly affect affordability.

4. Review CC&Rs, Rules, and Restrictions

Because you’re joining a community association, you’ll be expected to follow its rules.

Key items to review include:

• Rental limitations and leasing caps

• Pet rules

• Parking and storage restrictions

• Remodeling and construction requirements

• Quiet hours

• Guest and visitation rules

• Smoking policies

• Short-term rental restrictions

Rules vary widely by community and affect both lifestyle and resale value.

5. Read the Meeting Minutes

Meeting minutes are one of the best ways to understand how the community association is functioning.

Look for discussions related to:

• Rising expenses or dues

• Delinquency issues

• Insurance increases

• Reserve shortfalls

• Planned capital projects

• Neighbor disputes

• Contractor problems

If the board is struggling, minutes will reveal it.

6. Review the Master Insurance Policy

Insurance has become a major pressure point for community associations throughout Washington.

Buyers should review:

• What the master policy covers

• Master policy deductible amounts

• Whether water damage is covered

• Whether premiums have increased

• Whether the association is facing carrier changes

Your personal HO-6 policy should include:

• Dwelling coverage

• Water damage coverage

• Loss assessment coverage

• Liability coverage

2025–2026 shifts:
Many associations will adjust deductibles and coverage types as carriers tighten requirements.

7. Check for Litigation

Litigation can affect lending, insurance, and resale.

Common types include:

• Construction defect claims

• Water intrusion cases

• Disputes with contractors

• Insurance disputes

• Safety or structural claims

Litigation does not automatically mean a building is a bad purchase, but it requires careful evaluation.

8. Confirm FHA and VA Eligibility

Community associations must meet certain criteria for FHA or VA loans.

Factors include:

• Owner-occupancy percentage

• Delinquency rates

• Reserve funding

• Amount of commercial space

• Litigation status

Even if you are purchasing with conventional financing, FHA/VA eligibility affects future resale and buyer pool.

9. Understand Washington’s 2026 Community Association Law Changes

Washington continues updating community association statutes to improve clarity, financial stability, and transparency.

2026 changes include:

• More detailed budgeting disclosure requirements

• More formal reserve funding expectations

• New consumer-friendly transparency standards

• Expanded virtual and hybrid meeting allowances

• Additional document and disclosure obligations for associations

These changes support healthier, more predictable community associations.

10. Prepare for Washington’s 2028 WUCIOA Conversion

Washington will undergo a significant transition in how all condominium associations and community associations are governed. Under SB 5796, effective January 1, 2028, Washington will repeal three existing statutes:

• RCW 64.32 – Horizontal Property Regimes Act

• RCW 64.34 – Washington Condominium Act

• RCW 64.38 – Homeowners’ Associations Act

Beginning in 2028, all communities will be governed under a single statute:

• RCW 64.90, the Washington Uniform Common Interest Ownership Act (WUCIOA)
  https://apps.leg.wa.gov/rcw/default.aspx?cite=64.90

These references are provided for general information only.

Why This Matters for Buyers

This transition may affect:

• Budgets and dues

• Open meeting requirements

• Reserve funding

• Governing document updates

• Enforcement processes

• Approval procedures for projects and repairs

Some associations are already preparing for the 2028 transition.

People Also Ask

Is buying a condo in Washington a good idea?
Yes, if the community association is financially healthy and has a clear maintenance plan. Due diligence is essential.

What should I review before buying a condo?
Budget, reserves, reserve study, CC&Rs, community rules, meeting minutes, insurance, assessments, and litigation.

What is a community association?
A community association is the organization responsible for managing shared property, financial planning, rules, and governance in condos, HOAs, and townhome communities.

How do Washington’s new condo laws affect buyers?
They increase financial transparency, standardize reserve planning, and improve access to information before purchase.

FAQ

Who pays for the resale certificate?
Typically the seller, though fees vary by community association.

How long do buyers have to review resale documents?
Most buyers have a 5-day review window unless modified by contract.

Can dues increase after closing?
Yes. Dues may rise annually and may increase further as 2026 compliance requirements take effect.

What is the biggest red flag in a condo community?
Low reserves combined with major upcoming repairs or inconsistent reserve studies.

Final Thoughts

A condo can be a great investment, but buyers must evaluate both the unit and the community association behind it. Financial health, reserves, rules, insurance, and upcoming legislative changes all play a critical role in long-term value and quality of life.

With nearly two decades of experience reviewing community association documents, reserve studies, budgets, and complex condo governance, I help buyers evaluate buildings with clarity and confidence.

Need help reviewing a community association or HOA before you buy? I’m here to help.
Corwin Realty Group
206-650-7390 | [email protected]

Disclaimer -This article is for general informational purposes only and non-legal in nature. Condominium and community association laws change over time, and individual buildings may have unique conditions. Buyers and sellers should consult their attorney, CPA, or qualified professionals regarding their specific circumstances.