Georgia • Reserve study / underfunding
Is your Georgia condo's reserve underfunded — and does the state require funding?
A reserve study can read as reassuring while quietly showing your Georgia building is years behind on saving for its roof, elevators, or façade. What matters is how funded the reserves actually are — and what Georgia requires.
The short answer
Georgia does not require a reserve study and does not require the association to fund it. Condos must budget for replacement reserves and disclose them (§ 44-3-111), but there's no study mandate or funding level; HOAs have no reserve requirement at all. A thin reserve is the most common reason a special assessment lands later, so the study-versus-actual-balance gap is the number that matters. CondoSignal reads your reserve study and budget against Georgia's rules. Free.Georgia at a glance
Reserve study
Not required
No state mandate
Reserve funding
Not required
Underfunding is legal here
Super-lien
Yes
Priority over all liens except a first mortgage and taxes; foreclosure threshold around $2,000 (≈ 6 months)
Resale disclosure
Cancellation right
7-day rescission on developer/initial condo sales only (§ 44-3-111); none for resale between owners
What Georgia requires
Condos must budget for replacement reserves and disclose them (§ 44-3-111), but there's no study mandate or funding level; HOAs have no reserve requirement at all. Whether a thin reserve is merely risky or actually out of compliance depends on that rule — which is the first thing to establish.
Why underfunding becomes an assessment
No statutory cap (§ 44-3-80 condos / § 44-3-225 HOAs). A certified 30-day demand is required before foreclosing an unpaid assessment. The 'percent funded' figure in the study, compared to the actual reserve balance, tells you how exposed you are.
What it means for collection and resale
A partial super-lien: the association's lien outranks most liens but stays behind the first mortgage and taxes (O.C.G.A. § 44-3-109 / § 44-3-232). Condos must disclose budget, reserves, governing documents, and insurance; HOAs have no state-mandated resale disclosure — request financials proactively.
Your rights in Georgia
As a Georgia owner, your reserve information and any approved special assessments should appear in the association's budget and resale disclosures (7-day rescission on developer/initial condo sales only (§ 44-3-111); none for resale between owners). None of this is legal advice — confirm against the current statute and a licensed professional in your state.
What to check
- Find the reserve study's 'percent funded' figure.
- Compare the recommended contribution to what's budgeted.
- Confirm whether Georgia mandates reserve funding.
- Check the remaining life of the roof, elevators, and façade.
- Look for a reserve catch-up or a recent special assessment.
- Check the study's date — an old study understates today's costs.
Sources
- O.C.G.A. § 44-3-107 — condominium insurance coverage(High)
- O.C.G.A. § 44-3-111 — sale disclosure & reserves(High)
- O.C.G.A. § 44-3-109 — condominium lien(High)
Educational only — not legal, financial, or engineering advice. Confirm against the current statute and, where it matters, a Georgia-licensed professional.
FAQ
Frequently asked questions
Not sure what your documents are really telling you?
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