Condo Fees vs HOA Fees in Maryland (2026): What They Cover, Reserve Studies, Resale Documents and FHA/VA Approval

Every association is different. Read the declaration, bylaws and budget to see exactly what your fee pays for and what you must maintain yourself.

• Day-to-day operations: management, landscaping, snow removal, trash, common-area utilities and cleaning.
• Insurance: a condo usually carries a master policy on the building. Ask what it covers and what your own policy must cover.
• Reserves: savings for big future repairs such as roofs, paving, elevators and building systems.
• Amenities: pools, gyms, clubhouses and security, if the community has them.
• Utilities: some condo fees include water, sewer, heat or other services. Compare fees with this in mind.
• Special assessments: extra charges approved for a specific project or shortfall. Ask whether any are approved or under discussion.

A reserve study lists the major components the association must repair and replace, their remaining useful life and estimated cost, and the annual amount needed to fund them. Maryland now requires residential condominiums to have an independent reserve study and an updated study at least every 5 years, with start dates that differ by county (the law was phased in beginning with Prince George's County in 2020, Montgomery County in 2021 and the rest of the state in 2022). HOAs that maintain common areas with total repair or replacement costs of at least $10,000 have similar reserve study rules, and their annual budgets must include reserves.

A condo's resale certificate includes the current operating budget along with the current reserve study report or a summary, and the status of the reserve fund. Low reserves can mean higher fees or special assessments later.

• For most condo resales, the seller must give you the declaration, bylaws, rules and a certificate from the condo association no later than 15 days before closing.
• The certificate includes the fee and any unpaid assessments, other fees, approved capital expenditures not in the budget, the balance sheet and income statement, the operating budget with the reserve study or summary, pending lawsuits and judgments, insurance, known code violations in common areas, and more.
• The association must furnish the certificate within 20 days after the seller's written request and payment of a fee that the law caps and Maryland DHCD adjusts every 2 years. Faster delivery can cost an extra fee.
• You can cancel in writing within 7 days after you receive all the required information, without stating a reason, and get your deposit back. The right ends at settlement.
• Condos with fewer than 7 units have a shorter list of required documents.

• For a home in an HOA, the seller must give you the Maryland Homeowners Association Act disclosures on or before signing the contract, or within 20 calendar days after.
• If you did not receive all of them at least 5 calendar days before signing, you have 5 calendar days after receiving them to cancel in writing, without stating a reason.
• The seller must also tell you about any increase in mandatory fees of more than 10% and other substantial changes, and you have 3 calendar days after that notice to cancel.
• If you cancel, you get your deposit back, though the seller may keep the lesser of the copying cost or $100 unless you return the documents.
• Use the cancellation window before settlement to read the budget, reserves, rules and any rental or architectural restrictions.

FHA: HUD insures condo loans for a unit in an FHA-approved project, or in a project that is not FHA-approved if the unit meets Single-Unit Approval rules. Single-Unit Approval requires the project to be complete, have at least five units and not be a manufactured home project, and to meet a subset of project rules such as FHA concentration, owner-occupancy and financial condition. You can search FHA-approved condos on HUD's website.

VA: VA maintains a list of approved condos. If the condo is not on the list, the project must be submitted to VA for review before a unit can be bought with a VA loan. VA's condo report tool lets you search approved projects.

For a single-family home or townhouse in an HOA, ask your lender what review applies. For any condo, ask your lender to confirm FHA or VA approval status before you write an offer.

• What exactly does the fee cover, and how much has it changed in recent years?
• When was the last reserve study, and is the association funding the recommended amount?
• Are any special assessments approved or being discussed?
• Is there pending litigation involving the association?
• What are the rules on rentals, pets, parking and exterior changes?
• Is the condo FHA or VA approved, if you plan to use one of those loans?

This is general information, not legal advice. Confirm your rights under the documents with a Maryland attorney and confirm loan approval with your lender.