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Arizona HOA Fees and Disclosures: What Buyers Should Know Before They Sign

By Jannan Tamou, REALTOR®

Many of the homes in Peoria, Surprise and Glendale belong to a homeowners association. The HOA is part of the cost and the rules of the home, so it deserves the same attention as the house. Here is how to approach it.

What the HOA charges

  • Regular dues, monthly, quarterly or annual.
  • Transfer and disclosure fees when a home sells. Arizona law (A.R.S. 33-1806 for planned communities) addresses the information an association must provide on resale and limits what it can charge for that. Who pays is set in the purchase contract. Commonly the seller pays the disclosure fee, while transfer fees are assigned in the contract. Check the current statute at azleg.gov.
  • Special assessments, one-time charges for major projects.
  • Community facilities or district fees in some newer communities, separate from dues.

The documents to read

  1. CC&Rs (covenants, conditions and restrictions): the rules for the property.
  2. Bylaws and rules: how the association is run.
  3. Budget and financial statements: are reserves funded, and is the association spending more than it takes in?
  4. Meeting minutes: a good way to spot disputes, pending special assessments and rule enforcement.

Rules that affect daily life

Read for limits on rentals, parking and RVs, vehicle and trash can storage, exterior colors, fences, solar panels, landscaping and pools. If you want a guest house or an RV, check the rules before you make an offer. See my guide to buying a home with a pool.

Red flags

  • Very low reserves and large deferred maintenance.
  • Frequent special assessments.
  • Pending litigation.
  • Unpaid dues or violations attached to the home. Ask about them.

55+ communities

Active adult communities have their own fees and age restrictions. See my comparison of Sun City, Sun City West and Sun City Grand.

Questions to ask before you make an offer

  1. What are the dues, and when did they last increase?
  2. What do the dues cover: landscaping, amenities, insurance, water?
  3. Are there any special assessments pending or recently passed?
  4. How much is in the reserve fund, and is there a reserve study?
  5. Are there rental limits, or rules about guests and short-term stays?
  6. What are the parking, RV, truck and trash can rules?
  7. Does the home have any violations or unpaid balances?
  8. Who is the management company, and how responsive are they?

Resale documents and timing

When a home with an HOA is under contract, the seller orders HOA documents, and the buyer typically has a limited period to review them. Review them promptly and bring questions to your agent and, if needed, an attorney. If you find something you cannot accept, the contract may allow you to cancel within the review period, so do not let the deadline pass.

Enforcement and fines

Associations can enforce rules with notices and fines, subject to the governing documents and Arizona law. Before you buy, read how violations are handled, and ask for the minutes of recent meetings.

Solar, landscaping and exterior changes

Many HOAs require approval for exterior changes, such as paint, landscaping, fences, shade structures and solar panels. If you plan changes, get the approval process in writing before you buy.

Frequently asked questions

Who pays the HOA transfer fee in Arizona?

The purchase contract assigns it. Commonly the seller pays the HOA disclosure fee, and transfer fees are assigned in the contract. Check the current statute and your contract.

What is an HOA disclosure in Arizona?

It is the set of documents an association provides when a home resells, including governing documents and financial information. A.R.S. 33-1806 addresses it for planned communities.

How much are HOA fees in Peoria and the West Valley?

They range from none to substantial monthly dues in amenity-rich communities. Ask for the actual dues on each home.

Can I find a home with no HOA?

Yes, they exist, and I can search for them. You will take on more of the maintenance yourself.

No HOA?

Some buyers prefer a home with no HOA, for freedom to park an RV or build a casita. Those properties exist in the West Valley, though they are less common in newer subdivisions, and you will carry the maintenance yourself. Tell me what you need and I will search for it. Contact me.

This is general information, not legal, tax or financial advice. Rules change, so confirm details with the official source or a licensed professional for your situation.

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