Alabama guide
Alabama HOA document review
Alabama HOA and planned-community buyers operate with far less statutory protection than condo buyers. The Alabama Homeowners' Association Act (Ala.
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Code §35-20-1 et seq.) applies only to associations created on or after January 1, 2016 (plus older HOAs that affirmatively opt in), and it is largely an organizational statute — formation as a nonprofit corporation, filing declarations with the probate office, board election upon developer transition, lien rights, and records. There is no statutory resale certificate, no buyer cancellation right, and no minimum governance floor for pre-2016 HOAs, which fall almost entirely under their own declaration and the Alabama Nonprofit Corporation Act. The practical consequence: the documents you need to make an informed decision exist, but no statute forces their delivery. Closing that gap is the buyer's responsibility, and the contract is the primary mechanism.
The §35-20 scope limitation
The HOA Act reaches only associations created on or after January 1, 2016, or older HOAs that opt in through their declaration. For everything else — meetings, voting, fines, architectural review, and disclosure — the declaration and the Nonprofit Corporation Act govern. The first diligence question is therefore when the HOA was created and whether the Act applies at all.
No statutory resale certificate
Unlike the condo act's §35-8A-409 certificate, the HOA Act contains no statutory resale-disclosure regime and no buyer cancellation window. HOA buyers rely on the declaration, the purchase contract, and any seller property-condition disclosure. Build a documentation-delivery contingency into the offer specifying the documents and the timeline, and negotiate a meaningful review period.
What to request voluntarily
For an Alabama HOA, request the declaration and all amendments, bylaws, articles, current rules and architectural policies, the current budget and year-end financials for the last two to three years, the reserve balance and any reserve study, a statement of unpaid assessments for the lot, the master and any common-area insurance, board and member minutes for at least 18 months, developer-transition documentation if recent, and any open-litigation summary. None of this is automatic.
Records rights under the Act
For post-2016 HOAs, §35-20-13 makes financial records available to members, but the right is narrow compared with the condo act and with states that have detailed open-meeting codes. A board that resists producing records, or a pre-2016 HOA with no statutory floor at all, is worth probing before you commit.
Alabama legal references
- Ala. Code §35-20-1 et seq. — Alabama Homeowners' Association Act (post-2016 scope)
- Ala. Code §35-20-13 — HOA financial records available to members
- Ala. Code §35-20-12 — HOA assessment lien rights
Informational only. Not legal advice. Always confirm against current statute and counsel.
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Find a Alabama specialist →Reviewer's checklist
- Determine when the HOA was created and whether §35-20 applies (post-2016 or opted in)
- Request the declaration and all amendments, bylaws, articles, and current rules
- Request the current budget and year-end financials for the last 2–3 years
- Request the reserve balance and any reserve study (none is mandated)
- Request a statement of unpaid assessments for the specific lot
- Request the master and common-area insurance declarations and any claim history
- Request board and member minutes for at least the last 18 months
- Request developer-transition documentation for recently turned-over communities
- Build a documentation-delivery contingency and review period into the contract
- Confirm any pending or recently levied special assessment is addressed at closing
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Related risk areas
Read these next to round out your due diligence
Governance risk
An association's governance health is a leading indicator of every other risk.
Reserve studies
A reserve study tells you what the association expects to spend on long-term capital repairs and replacements, and whether it is funding those obligations adequately.
Special assessments
Special assessments are the single largest source of financial surprise in condo and HOA ownership.
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We can connect you with vetted real estate lawyers, mortgage brokers, and insurance brokers familiar with the specifics of condo and HOA transactions.
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