Why a Condo? The Case for This Type of Ownership
A condo is a particular kind of promise: that someone else will handle the roof, the parking lot, and the landscaping, so you can focus on the life happening inside. For first-time buyers looking for a lower-maintenance entry point, professionals who travel frequently, and those entering or already in retirement who want to simplify without sacrificing ownership — condo living answers a genuine need.
In New Hampshire, condos span an unusually wide range. You'll find them on the shores of Lake Winnipesaukee with boat slips and mountain views, in walkable downtown Portsmouth a few blocks from the harbor, tucked into wooded hillsides in the Monadnock Region, and in newer developments close to Manchester's services and airport access. The form fits many different versions of a well-lived life.
One clarification worth making before we go further: condominiums and HOA communities are not the same thing, even though the terms are often used interchangeably. In a condominium, you own your specific unit as real property — you receive a deed to that unit — along with an undivided interest in the common areas. The association is a unit owners' association governed by New Hampshire's Condominium Act (RSA 356-B), which sets specific requirements around disclosures, governance, and buyer rights. In a planned unit development (PUD) with an HOA, you typically own the land and structure of your home outright, and the HOA governs shared amenities and common areas. New Hampshire has no comprehensive HOA statute equivalent to RSA 356-B, so HOA obligations flow primarily from the community's recorded declaration and bylaws. This guide focuses on condominium purchases specifically, where the legal framework is more detailed and the due diligence process more involved.
But condo ownership is more layered than buying a single-family home. When you purchase a unit, you're not just buying square footage — you're entering into a legal and financial relationship with an association of neighbors. How well that association is run, how healthy its finances are, and how clearly its rules are written will shape your experience as an owner every bit as much as the unit itself. This guide is designed to help you evaluate all of it.
Part of the Reverie Residential New Hampshire Series
Thinking about retiring in New Hampshire? Read our region-by-region retirement guide →New Hampshire Condo Law: RSA 356-B Explained
New Hampshire's condominium law is codified in RSA Chapter 356-B, known as the New Hampshire Condominium Act. It governs how condominiums are created, how associations are run, what sellers must disclose, and what rights buyers are entitled to. It's the foundation everything else rests on.
A few provisions worth understanding before you start shopping:
What creates a condo association. A condominium legally comes into existence when four instruments — the Declaration, the Bylaws, the Site Plan, and the Floor Plans — are recorded at the county Registry of Deeds. Every unit owner, by purchasing, agrees to be bound by all four. This isn't optional or informal; RSA 356-B:15 makes compliance a legal obligation for all owners.
What sellers must disclose. Under RSA 356-B:58, sellers of resale condominium units are required to provide buyers with a specific set of disclosures. These include a description of the unit and common areas, current HOA fees and any pending special assessments, copies of the Declaration, Bylaws, and rules, the association's most recent financial statements and operating budget, insurance details, and the status of any pending litigation against the association. This disclosure package is sometimes called a resale certificate, and reviewing it carefully is one of the most important steps in buying a condo.
How the association is governed. RSA 356-B requires at least one annual meeting of unit owners. The board of directors manages day-to-day operations. Amendments to the Declaration or Bylaws require a two-thirds vote of all eligible members — a high threshold that provides some protection against sudden, dramatic rule changes.
Liens for unpaid dues. Under RSA 356-B:46, a condo association has an automatic lien against any unit with unpaid fees or assessments, once filed at the Registry of Deeds. That lien takes priority over most other liens except real estate taxes, first mortgages, and certain pre-recorded encumbrances. This matters to buyers because it affects financing eligibility and title.
"When you buy a condo, you're buying into a contract. The Declaration, Bylaws, and rules are that contract — and they're legally binding from the day you close."
The Four Core Documents Every Buyer Must Read
Every New Hampshire condominium is governed by four instruments recorded at the Registry of Deeds. Think of reviewing these documents the way you'd think about a home inspection — not optional, and not something to skim. Here's what each one tells you and what to look for.
The Declaration
The master document of the entire condominium. It defines what you own (the unit boundaries), what everyone owns together (common areas), and what no one can change without a supermajority vote. The Declaration establishes the association, allocates ownership percentages for common expenses, and sets the framework for everything else. In any conflict between the four instruments, the Declaration controls. Read it completely — this is the document that will most affect your daily experience as an owner.
The Bylaws
The operating manual for the association. The Bylaws govern how meetings are conducted, how the board is elected, how votes are counted, and how the association handles finances and disputes. Key things to look for: how board members are selected and how long they serve, what requires owner approval vs. board approval, and what the process is for challenging a board decision. Must be filed at the same time as the Declaration under RSA 356-B:35.
The Rules & Regulations
Where the details live. Rules cover things like pets (allowed? what sizes? how many?), rentals (permitted short-term? long-term only? not at all?), parking, noise, exterior modifications, move-in and move-out procedures, and use of amenities. These are typically easier for the board to change than the Declaration or Bylaws — so check the minutes to see if major rules have been recently amended or are under discussion. Rules that seem restrictive now may become important if your circumstances change.
The Site Plan & Floor Plans
The visual and spatial record of the property. The Site Plan establishes the physical layout and boundaries of the entire development — where the land is, where the buildings sit, where limited common areas (assigned parking spots, patios, storage) are located. The Floor Plans define individual unit boundaries. These matter if you ever want to understand exactly what you own, make structural changes, or resolve a boundary dispute with a neighbor or the association.
Beyond the Four Documents: Also Request These
- Board meeting minutes from the past 12–24 months — reveals what issues the community is actually navigating
- Current operating budget — shows what the monthly fees actually pay for
- Reserve fund balance and most recent reserve study (if one exists)
- Most recent financial statements (balance sheet and income/expense report)
- Insurance certificate — confirm what the association's master policy covers vs. what you must insure yourself
- Pending special assessment notices — any known upcoming one-time charges
- Current delinquency rate — percentage of units behind on dues
- Any pending or active litigation involving the association
Understanding Condo Association Finances: Fees, Reserves & Special Assessments
The financial health of a condo association is one of the most consequential things you can evaluate before buying — and one of the most commonly overlooked. Monthly fees tell you what you'll pay; the underlying finances tell you whether that payment is realistic or artificially low.
Monthly condo association fees. These fees cover day-to-day operating costs: landscaping, snow removal (significant in New Hampshire), trash, insurance on common areas, utilities for shared spaces, management fees, and routine maintenance. Complexes with amenities such as pools, elevators, or fitness centers will have higher fees. Request an itemized budget so you know exactly where the money goes — and whether the allocation seems realistic for what's actually being maintained.
The reserve fund. Separate from operating fees, the reserve fund is the association's long-term savings account for major repairs and replacements — roofs, siding, paving, mechanical systems, boilers, elevators. New Hampshire law requires that association budgets include a reserve line item, but does not mandate a minimum balance or require a formal reserve study. This means reserve fund adequacy varies widely across associations. As a general benchmark, Fannie Mae and Freddie Mac both require that at least 10% of total annual assessment income be allocated to reserves for a project to qualify for conventional financing. A reserve fund below that threshold is a meaningful warning sign.
The reserve study. A reserve study is a professional analysis that inventories every major common element, estimates its remaining useful life, projects replacement costs, and calculates annual funding needed to cover those costs without emergency assessments. New Hampshire does not require reserve studies by law, which means some associations have them and some don't. An association that has commissioned one recently (within three to five years) and is actively funding to it is demonstrably better managed than one operating without one.
Special assessments. A special assessment is an additional one-time or multi-year charge levied on all unit owners when the reserve fund is insufficient to cover a major expense — a failed roof, unexpected structural repair, water damage. Special assessments can range from a few hundred dollars to tens of thousands depending on the project and the number of units. Before buying, ask specifically whether any special assessments are pending or have been discussed at recent board meetings. The seller must disclose any currently planned assessments under RSA 356-B:58, but a well-informed buyer goes further and reads the meeting minutes to see what's being contemplated.
Worth Knowing
Low monthly condo association fees can be a feature — or a sign of underfunded reserves. Two associations with identical fees can be in dramatically different financial health depending on how much they're setting aside for capital needs. Always evaluate the reserve balance, not just the monthly number.
Red Flags to Watch For Before You Buy
Most condo purchases go smoothly. But a careful review of documents will occasionally surface issues that should give you pause — or at minimum, prompt a harder negotiation. Here are the signals worth taking seriously.
An Underfunded Reserve
If the reserve fund holds less than 10% of annual assessment income — or if no reserve study has ever been done — the association may be living beyond its means. Deferred maintenance has a way of compressing into expensive emergencies. An underfunded reserve means either fees will need to rise significantly or a special assessment is coming.
High Delinquency Rate
Fannie Mae and Freddie Mac will not back a mortgage in a building where more than 15% of units are 60 or more days delinquent on condo association assessments. Beyond the financing issue, a high delinquency rate signals financial stress in the community — and fewer contributions mean less money for maintenance and reserves.
Pending Litigation
An association involved in active litigation — whether a construction defect suit, a dispute with a contractor, or a lawsuit from a unit owner — carries financial uncertainty. Legal costs can deplete reserves quickly, and the outcome is always unpredictable. The seller is required to disclose active litigation under RSA 356-B:58, but reading the board minutes will often surface disputes before they reach the litigation stage.
Board Meeting Minutes That Reveal Deferred Maintenance
Minutes are one of the most honest documents you can read. If the same roof, HVAC system, or structural issue appears in meeting after meeting with no resolution, that's not a coincidence — it's a pattern. Look for recurring agenda items that suggest the board is aware of a problem but postponing action.
Rules That Don't Match Your Life
A condo with a strict no-rental policy matters if you ever want to rent the unit. A no-pet policy matters if you have or plan to get a dog. Age restrictions, parking limits, exterior modification bans, and short-term rental prohibitions are all common — and none of them are negotiable once you close. Read the rules before you fall in love with a unit.
Declarant Control of the Association
In new or recently developed communities, the developer (called the Declarant under RSA 356-B) often retains control of the unit owners' association until a certain percentage of units are sold or a set number of years have passed. This is legal and disclosed — but it means the board setting the budget and making maintenance decisions may not yet represent the community of actual owners. Ask when owner control is expected to transition, and review the Declaration to understand the specific terms.
Due Diligence Checklist for NH Condo Buyers
New Hampshire provides a due diligence period after an offer is accepted during which you can review documents, conduct inspections, and — if something material turns up — walk away. Use it fully. The following checklist covers the documents and questions that should be on every buyer's list.
Documents to Request and Review
Questions to Ask Before You Close
If the volume of documentation feels overwhelming, consider engaging a New Hampshire real estate attorney to review the disclosure package on your behalf. The cost is modest relative to the purchase price, and a trained eye will often spot issues that a first-time condo buyer would miss.
Financing a Condo in NH: What's Different
Financing a condo involves an additional layer of underwriting that single-family home buyers don't encounter. Lenders don't just evaluate you as a borrower — they also evaluate the condominium project itself. Fannie Mae and Freddie Mac, which back the majority of conventional mortgages, apply specific eligibility criteria to condo projects before they'll approve financing for any unit within them.
The most common eligibility requirements that trip up condo buyers in New Hampshire:
Reserve funding. Both Fannie Mae and Freddie Mac require that the association allocate at least 10% of total annual budgeted assessment income to the reserve fund. Projects that fall below this threshold may be ineligible for conventional financing, which would limit your options to portfolio loans or cash.
Delinquency rate. A project is generally ineligible for conventional financing if more than 15% of units are 60 or more days delinquent on condo association assessments. This is a project-level restriction — meaning even if your finances are perfect, you may not be able to get a conventional mortgage if the building's delinquency rate is too high.
Commercial space. If more than a certain percentage of a building's square footage is used for commercial purposes, the project may be classified differently and face additional lending restrictions. This most commonly arises in mixed-use buildings in downtown areas like Portsmouth or Concord.
Owner-occupancy rate. Lenders want a majority of units to be owner-occupied rather than investor-owned. A building with a high concentration of rental units may face tighter lending terms or ineligibility for certain loan programs.
The practical takeaway: talk to your lender early in the process about the specific project you're considering. A pre-approval for your finances doesn't guarantee a project will pass review — and discovering a financing issue after you're under contract is a stressful way to find out.
The Step-by-Step Buying Process in New Hampshire
Get Pre-Approved — and Flag That It's a Condo
Start with a mortgage pre-approval before seriously touring properties. Specifically tell your lender you're considering condos — this gives them a chance to explain any condo-specific lending requirements and helps you understand your budget with condo association fees factored in.
Tour Units and Ask About the Association Early
When you find a unit you like, start asking association questions before you make an offer. Monthly fees, pet policy, rental restrictions, and any pending assessments are all fair game during showings. A good agent can help you gather preliminary information before you're formally under contract.
Make an Offer with a Due Diligence Contingency
When you're ready to offer, ensure your purchase and sale agreement includes a due diligence contingency that gives you time to review the full disclosure package. The seller is required under RSA 356-B:58 to provide resale disclosures; your offer should specify the documents you expect to receive and the timeframe for your review.
Review All Documents — Thoroughly
This is the most important step in the entire process. Request everything on the due diligence checklist above. Read the Declaration and Bylaws fully. Go through the board minutes page by page. Have a real estate attorney review the package if anything is unclear. Use this period to ask every question that occurs to you — this is the moment you have the most leverage.
Schedule a Unit Inspection — and Consider a Building Inspection
Standard home inspections apply to the unit itself. For older buildings or complexes with visible deferred maintenance, also consider asking about a structural or building inspection of common elements. Your individual inspector can often flag exterior or structural issues worth flagging to the association, even if they're technically outside the scope of the unit inspection.
Complete Lender's Condo Project Review
Your lender will conduct their own review of the condo project for financing eligibility. Provide them with the association documents promptly to avoid delays at closing. If the project doesn't meet conventional guidelines, your lender can advise you on alternative financing options.
Close and Join the Community
At closing, you'll receive the deed to your unit and formally become a member of the condominium association. Attend your first unit owners' association meeting. Introduce yourself to the board. Read the rules again — this time as an owner, not a prospect. Condo ownership rewards engaged, informed residents.
Frequently Asked Questions
What law governs condominiums in New Hampshire?
New Hampshire condominiums are governed by RSA Chapter 356-B, the New Hampshire Condominium Act. It covers how condominiums are created, how associations are structured and governed, what sellers must disclose to buyers, and how assessments and liens work. Every buyer of a New Hampshire condo should have a working familiarity with its disclosure requirements, particularly RSA 356-B:58, which governs resale disclosures.
What documents is a seller required to provide when selling a condo in NH?
Under RSA 356-B:58, sellers must disclose the unit description, current and planned condo association fees, any pending special assessments, copies of the Declaration, Bylaws, and rules, the association's most recent financial statements and operating budget, insurance details, and any pending litigation against the association. Buyers should also request board meeting minutes and the reserve fund balance, which are best practice even when not strictly mandated by the statute.
Is a reserve study required for New Hampshire condo associations?
No. New Hampshire law requires that association budgets include a reserve line item, but does not mandate a formal reserve study or specify a minimum funding level. Reserve studies are industry best practice — not a legal requirement. This means reserve fund adequacy varies significantly across associations in the state. When evaluating a purchase, it's important to review the actual reserve balance rather than assuming adequate funding.
What is a special assessment, and how can I find out if one is coming?
A special assessment is a one-time or multi-year fee charged to all unit owners when the reserve fund is insufficient to cover a major repair or capital project. Sellers are required to disclose any currently planned special assessments. However, to catch assessments under discussion but not yet officially planned, buyers should read the board meeting minutes from the past 12–24 months. Recurring agenda items about deferred maintenance, aging systems, or capital projects are often early signals.
Can I get a conventional mortgage on any NH condo?
Not necessarily. Fannie Mae and Freddie Mac — which back most conventional mortgages — apply project-level eligibility criteria in addition to borrower criteria. A project may be ineligible if more than 15% of units are delinquent on condo assessments, if reserve funding falls below 10% of annual assessment income, if commercial space exceeds certain thresholds, or if investor-owned units dominate the building. If a project fails review, buyers may need a portfolio loan or cash purchase. Talk to your lender early and specifically about the project you're considering.
What insurance do I need as a condo owner in New Hampshire?
The association's master insurance policy covers common areas and, depending on the type of policy, may also cover the structure of the buildings. However, it typically does not cover your personal belongings, interior finishes, improvements you've made to the unit, or personal liability. Condo owners in New Hampshire should carry an HO-6 (condo owner's) insurance policy to cover the gaps between the master policy and your personal exposure. Review the association's insurance certificate before closing to understand exactly where the master policy ends and your coverage needs to begin.
Are short-term rentals like Airbnb allowed in NH condos?
It depends entirely on the individual association's rules. Some NH condo communities explicitly permit short-term rentals, others allow only long-term rentals with minimum lease terms, and others prohibit all rentals. These restrictions are legally enforceable and not negotiable at the individual unit level. If short-term rental income is part of your ownership plan, verify the association's rules before making an offer — not after.
