Thinking about a Keauhou condo and wondering what to read before you offer? You’re not alone. In resort areas like Kahaluu–Keauhou, small details in association documents can shape your lifestyle, rental plans, and long‑term costs. In this guide, you’ll learn exactly which documents to request, what to look for, and how to spot red flags so you can move forward with clarity and confidence. Let’s dive in.
Start with the right documents
When you buy a condo in Keauhou, you’re also buying into an Association of Apartment Owners (AOAO). The AOAO’s documents govern how the property runs and what you can and cannot do. Request these early in your contingency period.
Declaration of Condominium (CC&Rs)
- What it is: The master document that defines common vs. private elements, use restrictions, voting rights, and assessments.
- What to review:
- Rental rules and any minimum stay requirements.
- Pet allowances and limits.
- Exclusive use areas like assigned parking or storage.
- Who pays for what when it comes to structural issues (owner vs. AOAO).
- Any special provisions for resort or vacation rental units.
Bylaws and Articles of Incorporation
- What it is: Governance rules for the AOAO.
- What to review:
- Voting thresholds for amendments and assessments.
- Board powers to levy emergency assessments.
- Meeting notice and quorum requirements.
House Rules
- What it is: Day‑to‑day rules for living and using the property.
- What to review:
- Quiet hours, guest policies, amenity reservations, and penalties.
- Smoking and grilling rules, including permitted fuel types.
- Sublet and occupancy rules.
Pet Policy and Accommodation Procedures
- What to review:
- Allowed species, size or weight limits, and number of pets.
- Registration steps, fees, and designated pet areas.
- How the AOAO handles reasonable accommodation requests for service or support animals consistent with fair housing laws.
Financials and Budget
- What to request: Current year budget plus 2–3 years of financial statements.
- What to review:
- Insurance premiums, utilities, and management fees.
- Reserve contributions and any large one‑time expenses.
- Accounts receivable and owner delinquency trends.
Reserve Study and Funding Plan
- What to review:
- Date of the most recent study and its “level” of analysis.
- Percent funded or funded ratio, if provided.
- Upcoming projects in the next 1–5 years and estimated costs.
Meeting Minutes (12–24 months)
- What to review:
- Planned projects and vendor selections.
- Vote results on assessments or major repairs.
- Repeated owner complaints (leaks, pests, parking) and any mention of litigation or insurance claims.
AOAO Insurance Declarations
- What to review:
- Coverage type: all‑in vs. bare‑walls, covered perils, and exclusions.
- Deductible amounts and whether they can be assessed to owners.
- Guidance on owner “loss assessment” coverage for HO‑6 policies.
Estoppel/Resale Certificate
- What to review:
- Current monthly dues and any amounts owed by the seller.
- Pending or planned special assessments.
- Outstanding violations or liens against the unit.
Management and Vendor Contracts
- What to review:
- Term length, termination clauses, and fees.
- Large maintenance contracts coming up for renewal.
- Any vendor disputes noted in minutes.
Litigation Disclosures
- What to review:
- Active or threatened lawsuits involving the AOAO.
- Potential financial exposure and insurance involvement.
Note: Condominiums in Hawaii are governed by state law commonly referenced as Chapter 514B of the Hawaii Revised Statutes. Your AOAO documents should align with these requirements.
Rules that shape daily life in Keauhou
Keauhou is a coastal, resort‑style area where rules can vary by complex. Confirm the following before you rely on lifestyle or rental plans.
Short‑term rentals (STRs)
- Check AOAO documents for any ban, minimum stay, owner‑occupancy rules, or required registration with on‑site rental programs.
- Confirm any county zoning or permit requirements for transient rentals, as well as your tax obligations if you plan to rent.
- Ask how the AOAO enforces STR rules and whether management companies are required.
Parking, storage, and EV charging
- Verify assigned stalls, visitor parking limits, guest passes, and towing policies.
- Confirm whether storage lockers are included or transferable and if extra fees apply.
- Review rules for adding EV charging and any AOAO approvals or installation standards.
Amenities, smoking, and grilling
- Learn how to reserve common areas, guest limits, and any use fees.
- Many Hawaii condos restrict balcony grilling or certain fuel types. Confirm what is allowed.
- Review quiet hours and occupancy limits to avoid penalties.
Evaluate association financial health
Healthy AOAO finances reduce your risk of sudden costs. Focus on reserves, assessments, and what the minutes reveal about governance.
Reserves and reserve studies
- Look for a recent reserve study and how often it is updated.
- Note the funded ratio if provided and the timeline for big projects like roofs, paint, elevators, or pool decks.
- Ask how the AOAO plans to fund upcoming work.
Special assessments
- Ask about assessments in the past 5 years and any that are planned.
- Confirm how they are approved and the expected payment schedule.
- Consider the impact on your cash flow soon after closing.
Operating trends and delinquencies
- Watch for rising insurance premiums, utility costs, and management fees.
- High owner delinquencies can strain cash flow and increase assessment risk.
Read the minutes closely
- Minutes reveal board priorities, vendor issues, repeated complaints, and potential legal disputes.
- Look for references to reserve shortfalls or deferred maintenance.
- Frequent leadership changes or contested elections can signal instability.
Insurance and local hazards in Keauhou
Coastal settings are part of Keauhou’s appeal. They also shape insurance needs and costs.
Master policy vs. HO‑6
- The AOAO master policy typically covers common elements and sometimes the building shell. Verify whether coverage is all‑in or bare‑walls.
- Your HO‑6 should cover interiors, personal property, loss of use, and loss assessment. This can help with your share of master policy deductibles or certain assessments.
- Confirm master policy deductibles, limits, and exclusions.
Typical exclusions and higher deductibles
- Earthquake and flood are often excluded from standard property policies. Ask what is covered and where you may need separate policies.
- Coastal exposure can lead to higher wind or hurricane deductibles. Make sure you understand what a claim could cost you out of pocket.
Flood and tsunami exposure
- Check whether the unit lies in a FEMA flood zone and review local tsunami evacuation maps.
- If the property is in a Special Flood Hazard Area, a lender may require flood insurance.
Taxes and permits for rentals
If you plan to rent the condo, confirm the rules before you rely on projected income.
- Understand local zoning or registration requirements for short‑term rentals in Hawaii County.
- Register and comply with Hawaii General Excise Tax (GET) and Transient Accommodations Tax (TAT) if you rent short term.
- Ask for any past rental history and how the AOAO handles guest registration, access control, and compliance.
A simple due‑diligence workflow
Use this timeline to stay organized and reduce surprises.
Before you write an offer
- Ask the listing agent about rental permissions, recent or pending special assessments, and whether a current resale/estoppel certificate is available.
- Clarify pet rules, parking, and grilling policies if these are important to your lifestyle.
Once under contract
- Request the full AOAO document set listed above.
- Schedule your in‑unit inspection and consult with an insurance broker if coastal risks or high deductibles are likely.
- If you plan to rent, speak with a tax professional about GET and TAT.
During contingency
- Read minutes, reserve study, and insurance declarations first to spot any big issues.
- Verify whether the AOAO is discussing assessments or large capital projects.
- Ask targeted questions of the seller, manager, or board to clarify open items.
Before you remove contingencies
- Confirm that no new special assessment votes were posted.
- Request an updated estoppel if needed.
- Price in the true monthly cost, including dues, reserves, insurance, and likely near‑term projects.
Red flags worth a closer look
- Missing or outdated reserve study and large projects due soon.
- Very low reserve balance compared to projected needs.
- Multiple recent or repeated special assessments.
- High owner delinquencies or cash‑flow issues.
- Ongoing or threatened litigation, or frequent insurance claims.
- AOAO rules that conflict with your intended use, such as an STR ban.
- Extremely high master policy deductibles that could lead to owner assessments after a claim.
Quick pre‑offer checklist
- Current CC&Rs, Bylaws, and House Rules
- Pet policy and any accommodation procedures
- Current budget and 2–3 years of financials
- Most recent reserve study and reserve balance
- 12–24 months of board and membership minutes
- AOAO insurance declarations and deductibles
- Estoppel/resale certificate and delinquency status
- Details on special assessments and project timelines
- Management contract and major vendor agreements
- Litigation disclosures and insurance claim history
Partner with a local advisor
Buying in Kahaluu–Keauhou is about fit as much as finances. When you know how the AOAO operates, the true cost of ownership, and the rules that shape daily life, you can buy with confidence and enjoy the lifestyle you came for. If you want a calm, concierge process and a clear document review plan, connect with a local, design‑minded advisor who knows West Hawaii’s coastal complexes inside and out. Reach out to Kristen Matthews to walk through your shortlist, review AOAO docs, and map a path to a Keauhou condo that fits your goals.
FAQs
What AOAO documents should I request before buying a Keauhou condo?
- Ask for CC&Rs, Bylaws, House Rules, pet policy, current budget, 2–3 years of financials, the latest reserve study, 12–24 months of minutes, AOAO insurance declarations, an estoppel/resale certificate, key vendor contracts, and any litigation disclosures.
Are short‑term rentals allowed in Keauhou condo complexes?
- It depends on the AOAO rules and local county requirements, so confirm minimum stays, registration steps, enforcement policies, and tax obligations before relying on rental income.
How do reserves affect my ownership costs?
- Strong reserves reduce the chance of surprise assessments, while low reserves or big projects due soon can increase the risk of higher dues or special assessments.
What insurance do I need for a Keauhou condo?
- The AOAO master policy covers common elements; you typically carry an HO‑6 for interiors, personal property, loss of use, and loss assessment coverage based on the master policy deductibles and exclusions.
Why are meeting minutes so important during condo due diligence?
- Minutes reveal upcoming projects, votes, complaints, and possible litigation, helping you spot future costs or governance issues that may not appear in marketing materials.
Do I need flood or earthquake insurance in Keauhou?
- Flood and earthquake are often not included in standard policies; check the property’s flood zone and consider separate coverage if required by a lender or prudent for coastal risk.
What is an estoppel or resale certificate, and why does it matter?
- It’s an official statement of current dues, delinquencies, pending assessments, and violations for the unit, giving you a clear snapshot of costs and compliance before you close.
