Closing Documents & What to Look for When Buying a Home in an HOA in Colorado.

If you’re buying a home in Colorado, especially in Denver or the surrounding Front Range, it’s very likely your property will be part of a Homeowners Association (HOA). HOAs can help maintain property values, manage amenities, and keep neighborhoods looking their best. But they also come with rules, fees, and responsibilities that every buyer should understand.

At Brightstar Management Group, we manage HOAs across Colorado and know firsthand what homeowners should review before closing. Here’s what to look for when buying a home in a Colorado HOA.

The Colorado HOA Disclosure Package

Under Colorado law, sellers must provide buyers with a full HOA disclosure package before closing. This information is crucial for understanding your rights and obligations. Expect to see:

• Governing Documents:

  • CC&Rs (Covenants, Conditions & Restrictions): The rules that shape what’s allowed in the community.

  • Bylaws: How the HOA operates, including elections and voting.

  • Rules and Regulations: Policies about parking, pets, landscaping, and amenities.

• Financial Records:

  • Annual Budget: Shows how dues are allocated.

  • Balance Sheet & Income Statement: Reveal the HOA’s financial condition.

  • Reserve Study (if available): Outlines funding for future major repairs.

  • Fee Schedule: Details dues, late fees, and any other charges.

• Meeting Minutes: Recent board minutes highlight current issues or upcoming projects.

• Insurance Certificate: Clarifies what the HOA insures versus what you must cover with your homeowner’s policy.

Financial Stability Matters

When evaluating a Denver HOA or any Colorado community, one of the most important things to check is financial stability. Red flags include:

• Low reserves (not enough set aside for major projects).

• Frequent special assessments (extra charges to cover shortfalls).

• High delinquency rates (too many unpaid dues).

A financially healthy HOA means fewer surprises and better protection for your investment.

Know the Costs and Coverage

HOA dues in Denver and across Colorado vary widely. Some cover only common area maintenance, while others include snow removal, landscaping, trash, water, or even cable. Always ask:

• What’s included in the dues?

• How often have dues increased?

• Are large repairs planned that could raise costs?

Real-World Example: Buying in Denver

Imagine you’re buying a townhome in Denver’s Capitol Hill neighborhood. The seller provides the HOA disclosure package, and as you review it, you see:

• Monthly dues of $350 covering water, trash, and snow removal.

• A reserve study showing low savings for upcoming roof replacements.

• Board meeting minutes discussing a likely special assessment to cover those repairs.

This doesn’t mean you shouldn’t buy but it does mean you should budget for higher costs in the near future. Without reading those documents carefully, you could be surprised by a $2,000+ assessment shortly after moving in.

That’s why reviewing the HOA’s financial health and recent meeting minutes is critical when buying in Denver or anywhere in Colorado.

Lifestyle and Community Fit

Colorado HOAs vary widely. Some communities offer amenities like pools, trails, or gyms, while others focus only on basic maintenance. Before buying, consider:

• Amenities: Are they well-maintained and useful to you?

• Restrictions: Do pet, rental, or home improvement rules fit your lifestyle?

• Community culture: Talk to neighbors or review minutes—does the vibe match what you’re looking for?

Do Your Homework Before Closing

When buying a home in a Colorado HOA, don’t skim the documents. Read the disclosure package carefully and ask questions. Focus on:

• Recent board minutes for clues about upcoming expenses.

• Reserve studies and budgets to judge financial stability.

• Rules and CC&Rs to confirm they align with your lifestyle.

Doing this due diligence can save you stress and money after closing.

Final Thoughts

Buying a home in a Colorado HOA—whether in Denver, Boulder, Colorado Springs, or a mountain community—can offer peace of mind, amenities, and strong neighborhood standards. But it also comes with rules and shared costs. The more you know before you buy, the better prepared you’ll be.

At Brightstar Management Group, we help Colorado HOAs thrive through professional management and clear communication. If you’re considering buying a home in a Denver HOA or anywhere in Colorado, visit us at brightstarhoa.com.

We believe informed homeowners build stronger, happier communities.