What Bethesda Buyers Need to Know About HOA Disclosures

What should buyers know about HOA disclosures when buying a home in Bethesda, MD?

In Maryland, if you’re buying a property in a homeowners association, the seller is legally required to provide a resale disclosure package before closing. That package contains the HOA’s governing documents, current and projected fees, reserve fund balance, any pending special assessments, and the association’s rules. Maryland law gives buyers a right to cancel the contract after receiving this package — 5 business days for HOA properties and 7 calendar days for condominiums. Reviewing this package carefully — not just skimming it — is one of the most important steps in any Bethesda home purchase.

By Pey Behin | May 7, 2026

A lot of buyers focus intensely on the inspection report. They’ll stress over a leaky faucet or an older HVAC system. But then they sign off on the HOA documents without reading them — or they hand them to their agent with a “looks fine to me” and move on.

That’s a mistake.

If you’re buying a townhome, condo, or single-family home in a planned community in Bethesda, Potomac, Chevy Chase, or North Bethesda, there’s a very good chance you’re entering an HOA. Maryland has some of the most specific HOA disclosure requirements in the country. Understanding what you’re entitled to receive, what to look for inside those documents, and what your options are if something doesn’t look right can protect you from costs and restrictions you never saw coming.

What Is an HOA Resale Package?

Under the Maryland Homeowners Association Act, when a home in an HOA is sold, the seller is required to provide the buyer with a resale disclosure package. For condominiums, a similar — but slightly different — process applies under the Maryland Condominium Act.

The resale package is a financial and legal snapshot of the association at the time of your purchase. It’s not a summary. It’s the actual documentation.

A complete Maryland HOA resale package typically includes:

• The governing documents — the Declaration, Bylaws, and Rules & Regulations that define what you can and can’t do as an owner
• The current budget — what the HOA collects and how it spends money
• The reserve fund balance — how much the association has set aside for major capital repairs
• A statement of current assessments — your monthly dues, plus any special assessments already in effect
• Any pending special assessments — one-time charges the board has approved but not yet collected
• Pending or threatened litigation involving the association
• Any violations or unresolved fines on the specific unit you’re buying

The HOA or its management company has 20 days after a written request — and payment of a fee capped at $250 under Maryland law — to produce this package. In Bethesda, most well-managed communities turn it around faster, but build the timeline into your contract.

Your Right to Cancel — And the Window Is Short

Here’s the part most buyers don’t know: Maryland law gives you the right to cancel a contract after receiving the HOA resale package. The window depends on property type.

For HOA properties (most townhomes and single-family homes in planned communities): You have 5 business days to cancel after receiving the resale package.

For condominiums: Maryland gives you 7 calendar days after receiving the required condo documents.

These windows aren’t long. If you receive the package on a Thursday afternoon, your review clock starts immediately. Most buyers don’t take advantage of this because they don’t know it exists — or they receive the documents so late in the transaction that there’s no time to actually read them.

Make sure your agent pushes for delivery of the resale package early — ideally within two weeks of ratification, not as a last-minute closing requirement. On a Bethesda purchase at $1.2M or $1.8M, you want enough time to have an HOA attorney or your agent walk through it with you if something looks off.

There’s also a less-known protection: if you weren’t given the complete resale package at least 5 calendar days before you signed the contract, Maryland law gives you an alternative — 5 days to cancel after you finally receive it, even if you’re already under contract. Most buyers never hear about this right.

What the Monthly Fee Doesn’t Tell You

Most buyers see the monthly HOA fee in the listing and factor it into their budget. That makes sense. But the monthly fee is just the start.

In Bethesda, HOA fees on townhomes commonly run $200–$400/month. Condo fees in mid-rise and high-rise buildings downtown can run $500–$1,500/month or more, depending on amenities, the age of the building, and what the fee actually covers. Those fees pay for common area maintenance, building envelope insurance (in condos), landscaping, and in some communities, water and trash.

What they don’t cover — and what catches buyers off guard — are special assessments.

A special assessment is a one-time charge the board levies on all owners when a major repair or capital project exceeds the reserve fund. A parking garage needing resurfacing. A roof replacement on shared structures. An elevator rebuild. Boiler systems in older condo buildings near downtown Bethesda.

In Montgomery County, special assessments on Bethesda condos can range from a few thousand dollars to over $20,000 per unit depending on the scope of work. Sometimes they’re paid in a lump sum. Sometimes they’re added to the monthly fee over several years. The resale package will tell you if an assessment has already been formally approved — but it won’t tell you whether one is coming. That’s why the reserve fund matters. If you want a full picture of all upfront and ongoing costs, here’s a complete breakdown of buyer closing costs in Bethesda in 2026.

Reading the Reserve Fund Like a Buyer Should

The reserve fund is your canary in the coal mine.

Every HOA is supposed to maintain a reserve account dedicated to major capital repairs. A healthy reserve means the association isn’t living paycheck to paycheck. A depleted one means you may be walking into future assessments that aren’t disclosed because they haven’t been officially approved yet.

There’s no universal rule for what “fully funded” looks like, but a benchmark widely used in the industry is that a healthy reserve should be funded at 70% or more of the recommended level per a professional reserve study. Below 50% is a concern. Below 30% is a red flag worth either negotiating around or walking away from.

When you receive the resale package, find the reserve fund balance and compare it to the most recent reserve study if one is included. If the reserve study is more than 3–5 years old, flag it — the building’s capital needs may have grown without being formally reassessed.

Other Red Flags to Watch For

Pending or recent litigation. An HOA that’s in a lawsuit — suing or being sued — carries legal and financial risk that lands on every owner. Construction defect cases are common in newer communities. Check any litigation disclosures carefully.

High delinquency rates. If a large percentage of owners are behind on dues, the association’s cash flow is compromised. Some resale packages disclose the delinquency rate; others don’t. Your agent or attorney can request this separately.

Rental restrictions. Some Bethesda HOAs and condo associations cap the percentage of units that can be rented. If the cap is near its limit, you may not be able to rent the unit if your plans change — or, if you’re financing with an FHA or conventional loan, you may not qualify in a community with a low owner-occupancy ratio. This is also worth cross-referencing with your contract contingencies — a low owner-occupancy rate can affect lender approval.

Parking and storage rules. In Bethesda townhome communities, parking rights are often defined in the governing documents — what’s assigned, what’s shared, and what restrictions apply. Make sure what’s described in the listing matches what’s in the docs.

Pet and short-term rental restrictions. Some communities restrict pet sizes, breeds, or numbers. Others prohibit short-term rentals entirely. These live in the Rules & Regulations section — the part most buyers skip.

Working With an Agent Who Actually Reviews the Package

Not every agent walks buyers through the resale package carefully. Some flag the obvious — a pending assessment, major litigation — but don’t dig into reserve health, delinquency rates, or rental cap proximity.

This is exactly the kind of step I take with every buyer I work with in Bethesda. Before you sign off on the HOA documents, I want to walk you through what you’re looking at — not to alarm you, but so you can make a decision with full information. Sometimes the package is completely clean. Sometimes there’s something worth negotiating, like a seller credit to account for an underfunded reserve or a known upcoming project.

It also helps to know the community. I’ve worked with buyers in many of Bethesda and North Bethesda’s HOA communities — there are associations where the management is strong and the reserves are healthy, and a handful where the opposite is true. That context matters.

If you’re also thinking through the property tax side of ongoing ownership costs — which together with HOA fees can significantly change your monthly picture — here’s what Bethesda buyers often don’t know about Montgomery County property taxes.

Your right to cancel after the HOA review exists for a reason. Use the window — don’t just let it expire.

Frequently Asked Questions

Does every home in Bethesda have an HOA?

Not every home. Single-family homes on individual lots in older Bethesda neighborhoods typically don’t have an HOA. But most townhomes, condominiums, and homes in newer planned communities — especially in North Bethesda and Potomac — are part of an HOA. The listing will note if there are HOA fees, and your agent can verify before you make an offer.

Who pays for the HOA resale package in Maryland?

The cost of producing the resale package — capped at $250 under Maryland law — is typically a seller responsibility, though it’s a negotiating point. Some contracts specify who pays. Your agent should clarify this during contract negotiation so there are no surprises at closing.

Can I negotiate the purchase price if the HOA resale package reveals problems?

Yes. If the review period reveals an underfunded reserve, a pending special assessment, or another material concern, you have options: cancel the contract, negotiate a price reduction or seller credit, or ask the seller to resolve the issue before closing. Your cancellation right provides real leverage — use it.

What’s the difference between an HOA and a condo association in Maryland?

An HOA typically governs planned communities of single-family homes or townhomes, where each owner holds title to their unit and the land beneath it. A condo association governs buildings where you own the interior unit but share ownership of common areas. Cancellation rights differ slightly: 5 business days for HOA properties, 7 calendar days for condominiums under Maryland law.

How long is the HOA resale package valid in Maryland?

Maryland HOA resale packages are generally valid for 30 days from the date of issuance. If your closing is delayed past that window, the seller may need to request an updated package — which can add time and cost to the transaction.

Buying a home in a Bethesda HOA community isn’t complicated, but it requires attention at exactly the right moment. The resale package review window is short, and it’s easy to let it pass without really digging in — especially in a fast-moving transaction.

If you’re under contract on a property with an HOA, or you’re evaluating townhomes and condos in Bethesda and want to understand what you’re walking into before you make an offer, I’m happy to walk you through it. Reach out anytime.

About Pey Behin
Pey Behin is a residential real estate agent serving the Washington, DC metro area, with a focus on Bethesda, Montgomery County, and Northern Virginia. He works with buyers and sellers who want clear strategy, data-driven pricing, and direct guidance throughout the transaction process. His approach combines market analytics, negotiation expertise, and modern marketing to position clients effectively in competitive conditions.