What should you check in a Washington condo’s reserve study?
Look at the reserve balance and percent funded, the 30-year funding plan, any current or planned special assessments, and big upcoming projects like roofs, siding, decks, and elevators. Washington law generally requires associations to update the reserve study every year, with a site inspection at least every three years, and sellers must provide a resale certificate that includes reserve and assessment information. After receiving it, a buyer generally has five days to cancel. A poorly funded reserve can mean higher dues, special assessments, and harder financing — which affects both buyers and sellers.
When a condo buyer falls in love with a unit, they look at the kitchen, the view, and the monthly dues. What they often skip is the document that predicts the building’s next big bill: the reserve study.
I tell every condo buyer and seller the same thing — the reserve study and resale certificate are as important as the inspection. Here’s how to read them.
If you’re selling, our Pierce County home selling guide covers the full process.
What a reserve study is
A reserve study is the association’s long-range plan for replacing major shared components. It lists each component, estimates its remaining life and cost, and recommends how much to set aside each year.
Under Washington law, a reserve study generally must include:
- The current reserve balance and the percent funded
- Any special assessments already approved or planned
- Funding plans and recommended contribution rates, with projected balances over 30 years
- Any reserve deficit or surplus per unit
- Whether a reserve study professional prepared it, and the level of study (a full study, an update with a site visit, or an update without one)
Associations generally must update the study annually and do a visual site inspection at least every three years, with limited exceptions.
How to read it: five things to check
- Percent funded. This compares the actual reserve balance with where it “should” be. As a common industry rule of thumb, 70% or higher is considered strong, and 30% or lower is a warning sign. It’s a guide, not a rule.
- Big projects in the next five years. Roofs, siding, windows, decks, elevators, and paving are the expensive ones. Is there enough money set aside for them?
- Special assessments. Are any approved or being discussed? How much per unit, and when are they due?
- Contribution rate. Is the association contributing what the study recommends? If not, expect higher dues or assessments later.
- Meeting minutes. Board minutes often reveal problems — leaks, litigation, insurance changes — before they show up in the budget.
The resale certificate
When a condo sells in Washington, the seller generally provides a resale certificate from the association. It typically includes the current dues, any unpaid amounts, the budget, the reserve study or its summary, special assessments, insurance information, and pending litigation.
A buyer generally has five days after receiving it to cancel the purchase. Read it promptly. Here’s what to look for in an HOA or condo resale certificate.
Financing can be affected
Lenders review condo projects too. Conventional loan programs look at the association’s budget, reserves, insurance, litigation, and whether the building needs critical repairs. A project with serious deferred maintenance or underfunded reserves can be harder to finance, which narrows the buyer pool. FHA and VA buyers face their own condo approval rules.
If you’re selling a condo
- Order the resale certificate early so buyers aren’t waiting on it.
- Know the reserve story. If the building just finished a roof or siding project, that’s a selling point. If a project is coming, be ready to explain how it’s funded.
- Clarify who pays assessments. Who pays an assessment levied before or after closing is negotiable — make sure it’s spelled out in the purchase agreement.
Here’s our guide to selling a condo in Pierce County.
Frequently Asked Questions
How often does a Washington condo need a reserve study?
Washington law generally requires associations to update the reserve study every year and to do a new visual site inspection at least every three years, with limited exceptions.
What is a good percent funded for a condo reserve?
As an industry rule of thumb, 70% or higher is considered strong and 30% or lower is a warning sign. Look at upcoming projects and the funding plan too, not just the percentage.
Can I back out of a condo purchase after reading the resale certificate?
Generally, yes. In Washington, a buyer typically has five days after receiving the resale certificate to cancel the purchase agreement. Check your contract and timelines with your broker.
Who pays a special assessment when a condo sells?
It’s negotiable. The purchase agreement should state who pays assessments levied before and after closing, so discuss it before you sign.
Can low reserves affect a buyer’s mortgage?
Yes. Lenders review the condo project’s budget, reserves, insurance, and condition. Underfunded reserves or major deferred maintenance can make a building harder to finance.
Know the building, not just the unit
A condo’s reserve study tells you what the next ten years of ownership may cost. Whether you’re buying or selling, reading it early prevents surprises late in the transaction.
If you’re thinking about selling your condo, The Barnard Group’s complimentary Home Selling Strategy Session walks you through your home’s current value, your options, and a plan built around your timeline. Buying? Schedule a conversation and we’ll review the documents with you.
About Josh Barnard
Josh Barnard is the founder of The Barnard Group and has spent over 20 years helping families navigate some of life’s biggest moments through real estate. Known for his “Work Hard. Be Kind.” approach, Josh combines expert market knowledge, innovative marketing, and genuine care to help homeowners make confident decisions about their next chapter. Whether someone is buying their first home, moving up, downsizing, or relocating to Pierce County, his mission is simple: serve people well, create unforgettable experiences, and help families build a life they love.
Researched October 26, 2026. Requirements vary by when a community was created and which Washington statute applies. This is general information, not legal advice — consult a Washington attorney for specific questions.
