Buying a condo means evaluating both the unit and the association responsible for the shared property. The monthly fee alone won’t tell you whether a condo fits your budget or whether the building is being maintained well.
Before making an offer, review these seven areas and ask for the relevant documents. The Hawaiʻi Real Estate Commission’s condominium buyer checklist includes governing documents, the annual budget, board minutes, reserve information, and insurance among the items buyers should examine.
1. What the purchase actually includes
Confirm the type of ownership and exactly what comes with the unit. Check whether the property is fee simple or leasehold, and review the recorded documents for the unit’s boundaries, parking, storage, and any exclusive-use areas.
Some properties use a condominium property regime (CPR), which can have a different ownership structure from a conventional condo.
Read how CPR properties work in Hawaiʻi so you know what is individually owned and what is shared.
2. Governing documents and house rules
Read the declaration, bylaws, house rules, and any association policies. These documents explain how the association operates and what owners may or may not do.
Look for rules that affect your plans, including:
- Pets and animal limits
- Rental terms and minimum rental periods
- Parking and storage
- Renovations and flooring
- Guest access and noise
- Use of amenities and common areas
If you plan to rent the unit, confirm the rules and any applicable county requirements before relying on rental income.
3. The association’s finances and planned expenses
Review the current budget, recent financial statements, reserve study, and board meeting minutes. Look for major upcoming repairs, low reserves, insurance claims, delinquent dues, litigation, or discussions about raising fees.
Ask whether the association has approved or is considering a special assessment. A lower monthly fee may not reflect the full cost of ownership if major expenses are approaching.
4. Insurance for the building and your unit
Find out what the association’s master policy covers, what the deductible is, and what coverage you may need for the unit’s interior, belongings, and liability. Do not assume the association’s insurance covers every part of your unit.
The coverage can depend on the building and its governing documents. Hawaiʻi’s Department of Commerce and Consumer Affairs notes that association insurance for attached units may cover limited common elements without covering unit improvements or furnishings. Ask an insurance professional to review the master policy and explain what coverage you need personally.
5. The condition of the unit and the shared property
Arrange appropriate inspections of the unit, and look beyond its interior. Check the condition of common areas and major shared systems, such as roofs, elevators, plumbing, walkways, and parking structures. Review maintenance records and board minutes for recurring leaks, water damage, repair delays, or planned work.
A well-presented unit does not necessarily tell you how the rest of the building is being maintained. Hawaiʻi Life’s condo buying guide also recommends walking through the development and assessing its common areas and amenities.
6. The full monthly cost and financing
Add the mortgage payment, AOAO dues, property taxes, insurance, utilities not included in the dues, and a budget for maintenance or possible assessments. Ask what the dues cover, since inclusions vary by association.
Talk with your lender early about the building as well as your personal finances. The project’s finances, insurance, or other characteristics may affect the loan options available to you. Get a clear estimate of your total monthly costs before deciding what you can afford.
7. Location, daily needs, and resale considerations
Visit the property at different times of day if possible. Consider noise, traffic, access to work and services, parking, storage, and whether the building’s amenities suit your day-to-day needs.
For Hawaiʻi properties, also research the location’s exposure to flooding, coastal conditions, and other site-specific risks. Think about future resale, too: features such as parking, storage, and pet policies can affect who may be interested in the unit later.
Look beyond the listing
A condo can appear affordable based on its asking price and monthly dues, but the association’s finances, insurance, rules, and upcoming repairs can change the picture. Review the documents, get the right professional advice, and make sure the unit and the building fit your plans before moving forward.
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