HOA & Condo Terms

HOA fees, special assessments, estoppel certificates, co-ops and condo-ownership terms explained.

All 11 terms

  • An age-restricted community is housing legally permitted to limit residency to households with at least one member above a minimum age, most commonly 55, under a Fair Housing Act exemption for senior housing.

  • A capital contribution fee, sometimes called a "cap fee," is a one-time charge some HOAs and condo associations collect from a buyer when a unit sells, funding the association's reserves — distinct from ongoing HOA dues or a separate transfer fee.

  • In a housing cooperative, residents don't own their individual unit outright — instead they own shares in a corporation that owns the entire building, with their shares granting a proprietary lease to occupy a specific unit.

  • An estoppel certificate is a signed statement — from a tenant confirming their lease terms and rent are current, or from an HOA confirming dues owed and any pending violations — that a buyer or lender relies on to confirm those facts before closing.

  • An HOA is an organization that manages shared amenities and enforces community rules in a neighborhood or condo building, funded by mandatory fees paid by residents.

  • HOA FeeBasic

    An HOA fee is a recurring payment — usually monthly or quarterly — homeowners in an HOA-governed community pay to fund shared maintenance, amenities, insurance, and reserves.

  • A horizontal property regime is the legal framework, used in several U.S. states (including Hawaii and South Carolina) and elsewhere, under which a building is divided into individually owned units alongside commonly owned shared elements — functionally similar to what most states now call a condominium declaration.

  • A party wall agreement is a legal agreement between owners of adjoining properties — common with townhomes and rowhouses — governing shared responsibility for a wall on or near the property line.

  • A planned unit development is a zoning designation for a project designed as a single, cohesive development — often mixing housing types, shared amenities, and common areas — governed by its own set of rules rather than standard lot-by-lot zoning.

  • A right of first refusal gives a specific party — often a tenant, co-owner, or neighbor — the option to match any offer a seller receives before the seller can sell to someone else.

  • A special assessment is a one-time additional charge an HOA levies on homeowners to cover a major unbudgeted expense, such as a roof replacement or emergency repair.

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Definitions are provided for general educational purposes and are not financial, legal, tax, or real estate advice. Rules vary by transaction and location - verify important decisions with qualified professionals.