Are you eyeing a condo in Greenway or Upper Kirby but feeling lost in the HOA paperwork? You are not alone. Those documents shape your monthly costs, your ability to rent, and how the building takes care of big repairs. In this guide, you will learn exactly what to look for, common red flags, and a step-by-step review plan so you can remove your option period with confidence. Let’s dive in.
Core condo documents
Declaration (CCRs)
The Declaration creates the condominium and sets the rules for ownership and use. It defines your unit boundaries, common elements, voting rights, and assessment powers.
What to review:
- Assessment formula and whether the board can levy special assessments without an owner vote.
- Who maintains what: roof, exterior, balconies, elevators, HVAC chases, and parking.
- Leasing and rental restrictions plus any owner-occupancy rules.
- How amendments are approved and whether the developer has reserved rights.
- Any transfer or rental fees and unusual easements or perpetual obligations.
Why it matters: The Declaration drives your costs and lifestyle. It can cap or restrict rentals, shift maintenance to owners, and allow special assessments.
Bylaws
Bylaws govern how the association runs. They describe board seats, elections, voting, meeting notices, and officer duties.
What to review:
- Board election process, term limits, and quorum requirements.
- How votes are counted: by unit percentage or one-owner-one-vote.
- How special meetings are called and how budgets are approved.
- Conflict-of-interest rules and officer removal procedures.
Why it matters: Bylaws determine who makes decisions and how transparent the board must be.
Rules and Regulations
Rules and Regulations control day-to-day living. They cover parking, pets, renovations, short-term rentals, noise, and smoking.
What to review:
- Pet limits and guest policies. Short-term rental rules if you plan to rent occasionally.
- Renovation approval steps and required insurance or indemnity.
- How violations and fines are handled.
Why it matters: These rules affect your daily life and resale value. Strict short-term rental rules can stabilize a building. Onerous renovation steps can slow projects.
Budget and financials
You should receive the annual operating budget, assessment schedule, recent financial statements, and a balance sheet.
What to review:
- Current monthly assessments and how often they have increased.
- Operating surplus or deficit trends over the last 2 to 3 years.
- Delinquency rate and accounts receivable aging.
- Large line items such as insurance, management, utilities, elevator service, legal, and landscaping.
- Whether reserves are funded from operations or only by special assessments.
Why it matters: Healthy operating budgets and manageable delinquencies reduce the risk of fee spikes.
Reserve study and reserves
A reserve study estimates useful life and replacement costs for major items like roofs, elevators, exterior paint, and HVAC systems.
What to review:
- Whether a current reserve study exists within the last 2 to 3 years.
- Reserve balance compared to the study’s recommended funding and the project’s percent funded.
- Planned capital projects and how they will be paid for: reserves, special assessment, or a loan.
- Whether reserves are in restricted accounts or commingled with operating funds.
Why it matters: Inadequate reserves often lead to special assessments and financing issues.
Meeting minutes
Board and owner meeting minutes from the last 12 to 24 months reveal what is really happening.
What to review:
- Approvals of budgets, assessments, and major projects.
- Discussions of repairs, deferred maintenance, insurance claims, structural issues, or code violations.
- Patterns of owner complaints or enforcement disputes.
- Decisions made without proper notice or outside board authority.
Why it matters: Minutes show risk areas and how well the board communicates and follows process.
Insurance policies
The association’s master policy covers common areas and liability. Unit owner coverage varies by policy type.
What to review:
- Coverage type: bare walls-in, single entity, or all-in. Confirm what you must insure inside your unit.
- Deductible amounts and whether owners can be assessed to cover them.
- Flood coverage for the building and common areas.
- Policy limits, carrier stability, exclusions, and endorsements.
Why it matters: High deductibles or gaps can translate into large owner assessments after claims.
Management contracts
Review the contract with the property manager and major service providers such as security, janitorial, elevator, and landscaping.
What to review:
- Term length, automatic renewals, termination rights, and fee structure.
- Scope of work and any incentive or penalty clauses.
- Whether the manager can commit contracts or assessments without board approval.
- Recent changes in management or vendor disputes.
Why it matters: Unfavorable contracts can lock in high costs and increase maintenance risk.
Estoppel and resale certificates
These documents confirm current assessments, pending special assessments, infractions, and lien status for the unit.
What to review:
- Outstanding assessments and any known upcoming assessments.
- Transfer fees and fee schedules for documents.
- Recorded liens against the unit or the association.
Why it matters: Lenders often require current certificates. They prevent surprises at closing.
Common red flags
Financial red flags
- Repeated or large special assessments in recent years.
- Reserves far below recommendations or reserves held in the operating account.
- Persistent operating deficits or large budget variances without explanation.
- High owner delinquency, especially more than 90 days.
- Management fees that are unusually high for the building size.
Governance and operational red flags
- Frequent board turnover or repeated emergency meetings.
- Decisions made without minutes or proper notice.
- Contracts with heavy indemnities or automatic renewals that are not discussed openly.
- Rules that prohibit typical activities or sudden shifts in enforcement.
Legal and physical red flags
- Ongoing litigation, especially construction defect, structural issues, or large claims.
- Repeated or large insurance claims, or an insurer declining coverage.
- Deferred maintenance noted in minutes: roof, elevators, exterior envelope, or water intrusion.
- Building issues discussed repeatedly without action.
Financing and resale red flags
- Low owner-occupancy and high investor concentration that may affect FHA or VA eligibility.
- Rental caps that restrict leasing flexibility if you plan to rent.
- Transfer fees or developer rights that could impact resale.
Your review timeline
Timing is critical in Texas. Request documents as soon as your contract is accepted and before your option period ends. Some items can take 7 to 14 days and may carry a fee, so build that into your plan.
Minimum request list before you remove your option:
- Declaration, all amendments, and recorded instruments.
- Bylaws and current Rules and Regulations.
- Last 2 to 3 years of financial statements and budgets plus current year-to-date operating results.
- Current reserve study and the most recent CPA review or audit if available.
- Reserve bank statements or a ledger showing reserve balances.
- Last 12 to 24 months of board and owner meeting minutes.
- Master insurance declarations page and a summary of owner insurance obligations.
- Estoppel or resale certificate with current assessments and any pending assessments or liens.
- Owner-occupied ratio and leasing restrictions by unit.
- Management agreement and major vendor contracts like elevator or roofing.
- Litigation summary from the board or association counsel.
Targeted questions to ask the listing agent, manager, or HOA counsel:
- Are any special assessments pending or planned? What amount and timing?
- What is the current reserve balance and percent funded versus the study?
- Is the association involved in litigation? What exposure and costs are expected?
- Has the insurer raised premiums or deductibles, or declined renewal?
- What percent of units are investor-owned? Are short-term rentals permitted?
- What recent capital projects were completed and how were they funded?
- Are there any open violations or city-required repairs?
If you uncover major risks, consider delaying option removal, negotiating credits or escrow for known assessments, requiring the seller to obtain a clarifying estoppel, or walking away.
Local records to check
For Greenway and Upper Kirby condos, these local resources can help you confirm the facts:
- Harris County Clerk for recorded Declarations, amendments, plats, and easements.
- Harris County Appraisal District to confirm the legal description, owner of record, and tax accounts.
- City of Houston permitting and code enforcement records for permit history and open violations.
- FEMA Flood Map Service Center and Harris County Flood Control District for flood risk and mapping.
- FHA and VA condominium approval status if you plan to use those loan programs.
- Community Associations Institute for best practices on governance and reserve funding.
- Local real estate counsel for complex language, large assessments, or litigation.
Compare Upper Kirby buildings
Use this quick checklist across 3 to 5 candidate buildings so you can make an apples-to-apples decision:
Document and governance
- Declaration and last amendment date.
- Bylaws, board size, and election structure.
- Rules on short-term rentals, pets, and renovation approvals.
Financial health
- Current monthly assessment and recent increases.
- Operating surplus or deficit over the last 2 to 3 years.
- Reserve balance, date of last reserve study, and percent funded.
- Special assessments planned or recently levied with amount and timing.
- Accounts receivable aging and delinquency percentage.
- Management fee level and management contract term.
Physical condition and capital needs
- Building age and dates of last major work on roof, elevators, or façade.
- Reserve study timeline for major replacements and estimated costs.
- Signs of deferred maintenance in minutes or inspections.
Legal and insurance
- Active litigation and potential exposure.
- Master insurance deductible and any coverage gaps, including flood.
- Notes from insurers about renewals or rate changes.
Market and resale considerations
- Owner-occupancy rate and investor concentration.
- FHA or VA approval status if relevant to your financing.
- Transfer or leasing restrictions that affect liquidity.
Transparency and governance behavior
- Completeness and regularity of meeting minutes.
- Frequency of special meetings and emergency assessments.
- Quality of owner communications and timely issue resolution.
Next steps
Reading condo HOA documents is about clarity and risk control. Focus on how the building funds maintenance, how decisions are made, and whether rules fit your plans. If the numbers or governance do not add up, it is better to pause than to inherit a surprise assessment.
If you would like a seasoned, local eye on an Upper Kirby or Greenway condo, our team is here to help you gather documents, frame the right questions, and compare buildings with confidence. Reach out to Beth Wolff Realtors to Request a Personalized Consultation.
FAQs
How long do resale certificates take in Houston condos?
- Many associations deliver them in 7 to 14 days and charge a fee set by the association. Ask early and budget for the cost.
What reserve level is considered healthy for a condo?
- There is no single number. A current reserve study and percent-funded metrics are the best guides. Very low or zero reserves are a concern.
Can I get a mortgage if the HOA has litigation?
- It depends on the case. Large construction-defect or high exposure cases can limit lender options or FHA and VA eligibility. Review disclosures and ask your lender.
Who approves special assessments in Texas condos?
- The Declaration and Bylaws control this. Some allow the board to approve up to a limit, while larger assessments may require an owner vote.
Can I be assessed for the master policy deductible?
- Yes, if the governing documents allow the board to levy an assessment to cover a claim deductible. Review deductible amounts and consider loss assessment coverage on your unit policy.
