HOAleader.com - Tip of the Week - October 10, 2025
Published: Fri, 10/10/25
Updated: Wed, 10/15/25
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HOAleader.com - Tip of the Week - October 10, 2025
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Picture it: You're at a condo board meeting discussing a possible condo assessment, and an owner says, “But I'm about to list my property! I'll never be able to sell!”
In this week's tip, we give you a heads up about a new product that might help you ease those sellers' minds, plus help you collect assessments in the long run.
The special assessment warranty was launched by a REALTOR® who all too often saw potential buyers shy away from condos and townhomes out of fear of getting hammered with special assessments. The product is much like a home warranty but for special assessments. If a policy holder has to pay a special assessment, the warranty covers it—with some caveats.
“The product grew from my own frustration,” says Rhett Graves, Chicago-based founder and CEO of HOA Warranty and a residential real estate agent at Online Realty Professionals. “As a real estate agent, you want to problem solve for your clients. But when it came to townhouses and condos, I'd run into this blind spot. You're beholden to the state of the building, but you have nothing cost effective to respond to the potential for a special assessment, whether that's a real or perceived problem.”
Graves has seen too many potential buyers of condos and townhomes make an offer, get information on the condo's financials, and then balk at seemingly low reserves. “Without context, those reserve numbers don't mean much,” he explains. “But often buyers wanted to back out, and sellers would be devastated.
“Sellers would ask me: ‘What if this happens again on the next offer?'” adds Graves. “I didn't like that feeling of saying, ‘We don't know. Let's hope it doesn't.' With this product, sellers have more control over negotiations.”
A special assessment warranty is much like a home warranty. Graves says purchasers pay a premium, and the policy pays out if there's a special assessment. The product, launched in March, is available for purchase only at the point of sale, by either a buyer or seller. “So far, it's about 50-50 of sellers and buyers purchasing the warranties,” says Graves, “if not a little more on the buyers' side.”
Find out where it's available (with more states to come), plus the fine print, in our new article: https://www.hoaleader.com/members/5185.cfm.
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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Play It Safe: Opposition to Pickleball in Condos/HOAs Has Begun to Build
In this week’s tip, we explain why a case brought by two owners in a Florida HOA community who’ve sued their board for failing to address noise issues from the community’s pickleball courts is a warning to condos and HOAs nationwide...
Click here to read the full article:
https://www.hoaleader.com/members/Play-It-Safe-Opposition-Pickleball-in-Condos-HOAs-Has-Begun-Build.cfm
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Pickleball Is All the Rage and Enraging for Some Condo/HOA Owners
Two owners in a Florida HOA community have sued their board for failing to address noise issues from the community’s pickleball courts. They also claim the board’s process for converting HOA property to a pickleball court wasn’t sufficient. One lawyer’s update says this is part of a growing trend of disputes over pickleball. Our experts agree that the sport can serve up controversy if you’re not careful as you add it to your amenities...
Click here to read the full article:
https://www.hoaleader.com/members/Pickleball-All-Rage-Enraging-for-Some-Condo-HOA-Owners.cfm
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Condo/HOA Project Is Reserved and Budgeted: Any Further Action Needed Before It Begins?
An HOAleader.com reader asks: “It has been the past practice of the board to forego any specific approval of projects that are included in the reserve study and are within the annual budget for the relevant category. Is this an acceptable way to approve expenses?
Click here to read the full article:
https://www.hoaleader.com/members/Condo-HOA-Project-Reserved-Budgeted-Any-Further-Action-Needed-Before-It-Begins.cfm
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Lawmakers Are Targeting Condos and HOAs: What To Know About This Growing Trend
In this week’s tip, we give you a heads up: You may need to keep a watchful eye on your state legislators and step in to educate them if they get crazy ideas. We say this because state legislators across the country often don’t understand how condos and HOAs work, yet they plow through with legislation that makes your job harder...
Click here to read the full article:
https://www.hoaleader.com/members/Lawmakers-Are-Targeting-Condos-HOAs-What-Know-About-This-Growing-Trend.cfm
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Did This Condo Board Fail to Accept a Win and Create a Bigger Problem?
We received a copy of a lawsuit an owner in Massachusetts filed against their condo. Our thought: This board didn’t know when to accept victory and move on. But we’re getting ahead of ourselves. Before we ask our experts if they think the same, here’s the skinny that led to this lawsuit...
Click here to read the full article:
https://www.hoaleader.com/members/Did-This-Condo-Board-Fail-Accept-Win-Create-Bigger-Problem.cfm
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SPECIAL REPORT DOWNLOAD
How To Protect Your Condo/HOA With a Strong and Fair Architectural Review Process
One thing that makes condo and HOA communities thrive is their unified aesthetic—a goal accomplished through architectural standards and rules. Enforcing those provisions is performed either by your board or your architectural committee, according to your governing documents. Doing that consistently and fairly can be a challenge, and missteps can land condos and HOAs in court. You can avoid lawsuits and other less serious but still painful situations with the critical information in this special report.
Members can download the report here:
https://www.hoaleader.com/public/How-To-Protect-Your-Condo-HOA-With-a-Strong-and-Fair-Architectural-Review-Process.cfm
Not a member yet? Start your free trial membership and download your copy today:
http://www.hoaleader.com/details.cfm
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