Condo & HOA Glossary
Condo ownership comes with its own vocabulary. Here are the key terms you'll encounter in governing documents, HOA meetings, insurance policies, and real estate transactions.
B
- Bylaws
- The governing document that establishes how the HOA operates, including board elections, meetings, and voting procedures. Bylaws supplement the CC&Rs and focus on organizational structure. Learn more →
C
- CC&Rs (Covenants, Conditions & Restrictions)
- The master governing document for a condo or HOA community. Defines unit boundaries, common elements, maintenance responsibilities, and use restrictions. Also called the Declaration. Learn more →
- Common Elements
- Shared portions of a condo property owned collectively by all unit owners and maintained by the HOA. Includes the roof, foundation, hallways, elevators, and main utility lines. Learn more →
- Condo Association
- The governing body of a condominium community, responsible for maintaining common elements, enforcing rules, and managing shared finances. Also called the HOA or homeowners association.
D
- Declaration
- Another name for the CC&Rs — the master document that creates the condominium and defines ownership boundaries, responsibilities, and restrictions. Learn more →
- Deductible (HOA Insurance)
- The amount the HOA (or individual owners) must pay out-of-pocket before insurance coverage kicks in. Large deductibles on the master policy can create unexpected costs for owners. Learn more →
- Deferred Maintenance
- Repairs or maintenance that have been postponed, often due to budget constraints. Deferred maintenance increases future costs and is a red flag in HOA meeting minutes and reserve studies. Learn more →
- Due Diligence
- The process of reviewing HOA documents, finances, insurance, and legal status before purchasing a condo. Helps buyers identify risks like special assessments, underfunded reserves, and pending litigation. Learn more →
E
- Exclusive Use Common Area
- See Limited Common Element. Some states use this term instead. Refers to common areas assigned for the exclusive use of specific unit owners.
F
- Fiduciary Duty
- The legal obligation of HOA board members to act in the best financial interest of the community. Includes duties of care, loyalty, and good faith in managing association funds and decisions.
H
- HO-6 Insurance
- Individual condo owner insurance policy that covers personal property, interior improvements, liability, and gaps not covered by the HOA's master policy. Essential for every condo owner. Learn more →
- HOA (Homeowners Association)
- The organization that manages a condo or planned community. Collects assessments, maintains common areas, enforces rules, and manages the community's finances and insurance.
- HOA Fees (Assessments)
- Monthly or quarterly payments from unit owners to the HOA for maintenance, insurance, reserves, and operating expenses. Also called dues, maintenance fees, or regular assessments.
L
- Limited Common Element
- A common area assigned for exclusive use by one or more specific unit owners. Balconies, patios, assigned parking spaces, and storage lockers are typical examples. Maintenance responsibility varies. Learn more →
- Loss Assessment Coverage
- An HO-6 insurance rider that covers your share of special assessments resulting from a covered loss. Important when the HOA's master policy deductible is high. Learn more →
M
- Master Insurance Policy
- The HOA's insurance policy covering common elements and sometimes the building structure. Can be "bare walls" (covers structure only) or "all-in" (covers interior finishes). The type determines what your HO-6 needs to cover. Learn more →
- Meeting Minutes
- Official records of HOA board meetings. Reveal past decisions, ongoing disputes, planned projects, and the overall health of HOA governance. A key due diligence document for buyers. Learn more →
O
- Operating Budget
- The HOA's annual budget covering regular expenses like maintenance, insurance, management fees, utilities, and landscaping. Does not include capital reserves.
P
- Percent Funded
- A measure of how much money the HOA has saved in reserves compared to what it should have based on the reserve study. 70%+ is generally considered adequate; below 30% is a red flag. Learn more →
- Plat Map
- A recorded map showing the boundaries of individual units and common areas in a condominium. Referenced by CC&Rs to define exactly what each owner owns.
- Property Manager
- A professional or company hired by the HOA board to handle day-to-day operations including maintenance coordination, financial management, and rule enforcement.
Q
- Quorum
- The minimum number of owners (or board members) required to be present for a valid vote. Typically defined in the bylaws as a percentage of total ownership.
R
- Reserve Fund
- Money set aside by the HOA for future major repairs and replacements (roof, elevator, parking structure, etc.). Funded through a portion of regular assessments. Learn more →
- Reserve Study
- A professional analysis of all common area components, their remaining useful life, and the cost to replace them. Used to determine adequate reserve funding levels. Should be updated every 3-5 years. Learn more →
- Responsibility Chart
- A document mapping each building component to the responsible party (HOA, owner, or shared). Reduces disputes and provides a clear reference for maintenance decisions. Learn more →
- Rules & Regulations
- Board-adopted rules that supplement the CC&Rs and bylaws. Cover day-to-day matters like noise, pets, parking, and architectural modifications. Can be changed by board vote without owner approval.
S
- Separate Interest
- The legal term for an individual condo unit — the portion of the property owned exclusively by one owner. Boundaries are defined in the CC&Rs. Learn more →
- Special Assessment
- A one-time charge to unit owners for major repairs or improvements that exceed available reserve funds. Can range from hundreds to tens of thousands of dollars per unit. Learn more →
- Studs-In / Studs-Out
- Refers to how the CC&Rs define the unit boundary. "Studs-in" means the owner is responsible from the wall studs inward. "Studs-out" means the HOA is responsible for everything outside the interior wall surface.
- Subrogation
- The process where an insurance company recovers costs from a responsible party after paying a claim. In condos, the HOA's insurer may subrogate against an owner whose negligence caused damage.
T
- Transition Period
- The period during which the developer retains control of the HOA before turning it over to unit owners. Buyers should be cautious during this period as the developer may prioritize sales over reserves.
U
- Unit
- The individual space owned by a condo owner. Boundaries are defined in the CC&Rs and typically include interior surfaces, fixtures, and appliances within the defined space. Learn more →
- Unit Boundary
- The legal line that separates what an individual owner owns from what the HOA owns as common elements. Usually defined in the CC&Rs and varies significantly between communities. Learn more →
Workbook
Want everything in one place?
The CondoWorkbook combines the responsibility matrix, due diligence checklists, maintenance trackers, and board question scripts into one printed reference you can mark up and keep.
View the Workbook