Buying or owning a condo on Mercer Island means you live with an HOA or condo association that helps maintain the building and protect your investment. Still, the documents and rules can feel dense, especially when you are trying to time a sale or plan a purchase. You want clear, local guidance that helps you spot risks, budget for fees, and ask the right questions before you sign. In this guide, you will get a simple walkthrough of Washington HOA basics, plus Mercer Island specifics that matter for older buildings, waterfront exposure, and high-value assets. Let’s dive in.
Washington HOA basics in a nutshell
What Washington law covers
Washington law sets the framework for condo governance through the Washington Condominium Act. Your community also follows its recorded declaration, bylaws, and rules. State law and your documents work together, but the recorded declaration often controls day-to-day use unless a statute says otherwise.
For consumer-friendly guidance, you can also review practical resources from the Community Associations Institute and the Washington State Attorney General’s guidance on homeowner associations. If you want to confirm recorded documents like CC&Rs or plats, check the King County Recorder for your property records.
Why Mercer Island context matters
Mercer Island has a wide range of condo buildings, from mid-century communities to newer waterfront towers. Local conditions that often affect associations include shoreline and bulkhead care, aging building systems like roofs and elevators, and tight on-site parking. Because property values are high, reserve strength and the potential for special assessments are especially important when you plan a sale or purchase. You can also review city permitting history through the City of Mercer Island planning and building department if a building has undergone major repairs.
The key documents you will review
Resale certificate
The resale certificate is the snapshot of the association at the time of sale. It typically includes:
- Current assessments, your account balance, and any unpaid amounts
- Reserve balance and the current budget
- Notices of pending special assessments or litigation
- Insurance summary and deductible information
- Copies or summaries of governing documents and rules
Associations or their managers prepare this packet and charge a fee. In many markets the seller pays, but your purchase contract and local practice control. Pay close attention to reserve levels, any planned assessments, and insurance details that could shift repair costs to owners.
Governing documents
You will receive or review the declaration/CC&Rs, bylaws, and rules and regulations. These set rental and short-term rental policies, parking assignments, pet limits, smoking rules, and how alterations are approved. Confirm how fines and disputes are handled, and how voting works if the community needs to update rules or amend the CC&Rs.
Budgets and reserve studies
The annual budget shows operating income and expenses. The reserve study estimates the remaining life and cost of big-ticket items like roofs, exterior cladding, paving, or elevators, and recommends funding levels. On Mercer Island, older buildings may face near-term capital projects such as façade work or elevator upgrades, so check whether reserves are funded in line with the latest study and whether special assessments have been frequent.
Insurance
Associations carry a master policy and owners carry HO-6 policies. Focus on:
- What the master policy covers inside units (all-in or bare walls)
- Deductible amounts and loss-assessment terms
- Earthquake and flood coverage, which are usually not included
- How damage is defined and who is responsible for interior components
Minutes, contracts, and recent changes
Recent board meeting minutes reveal emerging issues. Look for discussions about repairs, rule updates, enforcement trends, and vendor contracts that affect costs. Review maintenance, elevator, and management contracts for term lengths and fees that may impact future assessments.
How a sale interacts with your HOA
Timeline and expectations
- During escrow, your agent requests the resale certificate and governing documents from the association or manager.
- Turnaround varies by association and management company. Some return documents within 3 to 5 business days while others take longer. Build in extra time and request early.
- Associations typically charge a preparation fee. There may also be transfer fees or move-in and move-out deposits per your CC&Rs or rules.
Who pays what
Your purchase contract and local practice guide who pays for the resale packet and any transfer fees. In many cases the seller covers the resale certificate fee. Ask up front so you can budget it into your closing costs.
Rules, owner rights, and disputes
How rules change
Boards can often adopt or amend rules based on authority in the bylaws or CC&Rs, sometimes with a notice and comment period. Amending the declaration usually requires a higher owner vote and a recorded amendment. The exact thresholds and procedures are set in your documents and state law.
Owner access and participation
Owners usually have rights to meeting notices, access to financials, governing documents, and minutes. Many associations provide online portals. If not, owners can request records under association policy and applicable law.
Dispute resolution
Your documents may provide steps for internal hearings, mediation, arbitration, or litigation. Review the community’s process for fines, collections, and how to contest violations.
Mercer Island checklist for buyers and sellers
Use this to request documents early and keep your review focused:
- Resale certificate with any special assessment disclosures and your account payoff
- Declaration/CC&Rs, bylaws, articles, and current rules and regulations
- Current budget, operating statement, and balance sheet
- Most recent reserve study and capital projects schedule
- Board meeting minutes for the last 6 to 12 months
- Master insurance declarations page, deductibles, exclusions, and earthquake coverage status
- Management agreement and key vendor contracts, especially elevator maintenance
- List of current directors and manager contact information
- Move-in and move-out procedures, transfer fees, and deposits
Local questions to raise:
- Waterfront or slope areas: Who maintains shoreline or bulkheads and how are those costs reserved?
- Elevators and façades: Has the building evaluated modernization or exterior work in the reserve study?
- Seismic: Has the association discussed seismic needs in planning documents?
- Parking: How are stalls assigned and what are guest parking limits?
- Rentals: Are short-term stays allowed or restricted under rules or CC&Rs?
When to dig deeper
Be cautious and ask follow-up questions if you see any of the following:
- Low reserves compared to upcoming capital needs or a missing recent reserve study
- Frequent or large special assessments without a long-term plan
- Pending or repeated litigation involving the association
- Rising assessment delinquencies among owners
- Insurance language that shifts common area repair costs to unit owners without clear deductibles
How a concierge broker helps your condo sale
On Mercer Island, the difference between a smooth closing and a stressful one often comes down to document timing, clear communication with the HOA, and smart presentation. A hands-on advisor can help you:
- Order the resale packet early and track deadlines with the manager
- Translate reserve studies and insurance summaries into practical next steps
- Coordinate vendor quotes or simple prep to support listing photos and showings
- Communicate move-in or move-out requirements so your timeline stays intact
If you plan to buy, a skilled condo-focused broker can help you compare buildings, read between the lines of minutes and budgets, and negotiate based on real risks like near-term projects or assessment timing.
Ready to simplify your Mercer Island condo move and feel confident about the HOA details? Connect with Jamila Saidi for warm, operationally informed guidance from offer to closing.
FAQs
What is a resale certificate in Washington and why is it important?
- It is the association’s official snapshot at sale time that outlines assessments, reserves, insurance, rules, and any pending litigation so you can confirm costs and risks before you close.
Who usually pays for the resale certificate on Mercer Island condo sales?
- Associations charge a preparation fee and, in many cases, the seller pays, but your purchase contract and local practice ultimately decide who covers it.
How can I check if reserves are strong for a Mercer Island condo?
- Review the most recent reserve study against the capital project schedule and compare reserve funding levels to upcoming needs, then check for a history of special assessments.
What does the HOA master insurance cover versus my HO-6 policy?
- The master policy covers the building and common areas and may or may not include unit interiors; your HO-6 covers interior finishes and personal property based on how the master policy defines coverage and deductibles.
How long does it take to get HOA documents during escrow?
- Turnaround varies by association and manager; many provide packets within several business days, but you should request early and allow extra time to avoid delays.
Are short-term rentals allowed in Mercer Island condo buildings?
- It depends on the building’s CC&Rs and rules; many associations restrict or prohibit short-stay rentals, so confirm the policy in the governing documents you receive.
