Seattle Condo Authority • Jeff Reynolds • 20+ Years Experience

Seattle Condo Glossary

Every term you will encounter buying or selling a Seattle condo -- defined clearly, with context that actually matters.

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Seattle's condo market has its own vocabulary. Conversations about reserve studies, LCEs, NWMLS addenda, rental cap waitlists, and FHA warrantability happen fast -- and buyers who do not know the terminology are at a disadvantage in negotiations and due diligence.

Jeff Reynolds has spent 20+ years translating this language for Seattle condo buyers and sellers. This glossary reflects the terms that actually come up in real transactions -- not textbook definitions, but working definitions from someone who has reviewed hundreds of resale certificates, reserve studies, and HOA financials on behalf of clients.

Each term links to a deeper guide where one exists on the Seattle Condo Authority network.

A Terms

Addendum 22D -- Condominium Addendum
The NWMLS form used in Washington State condo purchase transactions. It sets the timeline for the seller to deliver the resale certificate (10 days from mutual acceptance) and gives buyers 3 business days to review it and rescind for any reason. Every Seattle condo offer should include this addendum.
Amenity Assessment
A separate fee, sometimes called a capital assessment, charged by a building to fund a major amenity upgrade -- a lobby renovation, fitness center overhaul, or rooftop terrace addition. Amenity assessments are not required by code but are voted by the HOA board and membership. They appear as a line item in meeting minutes and should be flagged in any resale certificate review.
Articles of Incorporation
The legal document that formally creates a condominium association as a nonprofit corporation under Washington State law. The articles establish the association's legal name, purpose, and basic governance structure. They are part of the governing documents package a buyer receives in the resale certificate.

B Terms

Budget (HOA Operating Budget)
The annual financial plan adopted by a condo association that projects income (primarily from HOA dues) and operating expenses. A well-structured budget separates operating costs from reserve contributions. Jeff Reynolds reviews HOA budgets as part of buyer due diligence -- a budget that is running a deficit or has inadequate reserve contributions is a warning sign worth discussing before closing.
Bylaws
The rules that govern how a condo association operates -- meeting procedures, board election processes, quorum requirements, and officer duties. Bylaws are distinct from CC&Rs: CC&Rs govern what owners can do with their units and common areas; bylaws govern how the HOA itself functions. Both are included in the governing documents delivered at resale. Pet restrictions, rental caps, and parking rules may appear in either document or in separately adopted rules and regulations.

C Terms

Capital Reserve Fund Key Term
Money set aside by an HOA to fund major future repairs and replacements -- roofs, elevators, facade systems, parking garages, windows, and mechanical systems. Washington State law requires associations to conduct reserve studies to estimate how much needs to be saved. A reserve funded at 70% or more of the study recommendation is generally considered healthy; below 50% is a red flag. Learn more: Seattle Condo Reserves Explained.
CC&Rs (Covenants, Conditions, and Restrictions)
The foundational governing document for a condo association. CC&Rs define property boundaries, establish owner rights and obligations, set rules for use of the unit and common areas, and create the legal framework for the HOA. They are recorded with the county and run with the land -- meaning every buyer inherits them. CC&Rs typically cover: rental restrictions, pet policies, parking assignments, noise rules, and alteration approval requirements.
Common Area
Portions of the building and property owned collectively by all unit owners through the association -- lobbies, hallways, elevators, stairwells, rooftop decks, fitness centers, parking garages (unless deeded), and landscaping. All owners share equally (or per their ownership percentage) in the costs of maintaining common areas through HOA dues and assessments.
Condo Declaration (Declaration of Condominium)
The master legal document that creates a condominium under Washington State's Condominium Act (RCW 64.34) or the Horizontal Property Regimes Act (RCW 64.32 for pre-1990 buildings). The declaration describes unit boundaries, defines common elements and limited common elements, establishes ownership percentages, and creates the association. It is recorded with the county recorder and is not easily amended -- most declarations require a supermajority (67% to 80%) vote to change.
Condominium Act (RCW 64.34)
Washington State's primary statute governing condominiums created after July 1, 1990. It sets minimum requirements for association governance, reserve studies, resale disclosures, and owner rights. Buildings created before 1990 are governed by the older Horizontal Property Regimes Act (RCW 64.32), which has fewer buyer protections. Most of Seattle's newer high-rises are governed by RCW 64.34.
Contingency
A condition written into a purchase agreement that must be satisfied for the sale to proceed -- or the buyer can cancel without penalty. Common condo contingencies include financing, inspection, title review, and resale certificate review. Washington State's Addendum 22D automatically creates a resale certificate review contingency. Learn more: Seattle Condo Contingencies Guide.
Closing Costs
Fees and charges paid at the close of a condo purchase -- above and beyond the down payment. For Seattle condo buyers, typical closing costs include lender origination fees, title insurance, escrow fees, prepaid property taxes, prepaid HOA dues, and HOA move-in fees. Total closing costs typically run 2% to 3% of the purchase price. Learn more: Seattle Condo Buyer Closing Costs.

D Terms

Deeded Parking Space
A parking space that is recorded as a separate legal interest in the county's real property records -- meaning it has its own parcel number and can, in some cases, be sold independently of the unit. Deeded spaces are the strongest form of parking ownership. Contrast with Limited Common Element (LCE) parking (exclusive use but not separately titled) and licensed spaces (revocable by the HOA). Learn more: Seattle Condo Parking Rules.
Disclosure Statement
Washington State requires sellers of condominiums to complete both a standard Seller Disclosure Statement and, for RCW 64.34 buildings, a Condominium Resale Certificate. The disclosure statement covers the seller's personal knowledge of the unit's condition; the resale certificate covers the HOA's financial and legal condition. Both are required in most Seattle condo transactions. Learn more: Seattle Condo Disclosure Requirements.
Dues (HOA Monthly Dues)
The monthly payment every condo owner makes to the homeowners association. Dues fund operating expenses and reserve contributions. They are a legal obligation -- failure to pay can result in a lien against the unit. Lenders count HOA dues as part of monthly housing expense when calculating debt-to-income ratios. Learn more: What Are Condo HOA Fees in Seattle?

E Terms

Earnest Money
A deposit made by the buyer at the time of contract execution, held in escrow until closing. In Seattle condo transactions, earnest money typically ranges from 1% to 3% of the purchase price. It protects the seller if the buyer walks away without a valid contingency reason. If a buyer cancels during a valid contingency period (such as the resale certificate review window), earnest money is generally refunded.
Escrow
A neutral third party (escrow company or title company) that holds funds and documents during a real estate transaction. In Washington State, escrow officers manage the closing process -- they collect the buyer's funds, pay off existing liens, record the new deed, and disburse proceeds to the seller. Escrow fees are a closing cost paid by both buyer and seller (split per contract terms).

F Terms

FHA Warrantability Key Term
A determination of whether a condo project meets FHA (Federal Housing Administration) guidelines for FHA-backed loans. FHA condo approval requires the building to meet requirements on owner-occupancy rates, HOA financial health, delinquency rates, commercial space percentage, and insurance coverage. Buildings with high rental rates, pending litigation, or inadequate reserves may lose or fail to achieve FHA approval, reducing the buyer pool and potentially suppressing resale value. Learn more: Seattle Condo Financing Rules.
Financing Contingency
A contract provision allowing the buyer to cancel if they cannot obtain financing on the agreed terms. For condo purchases, financing contingencies can be more complex than single-family transactions because both the buyer and the condo project must meet lender requirements. Learn more: Seattle Condo Contingencies Guide.

G Terms

General Common Elements
Parts of a condo building owned collectively by all unit owners -- as distinguished from Limited Common Elements (LCEs) reserved for specific units. General common elements typically include structural components (walls, roof, foundation), shared systems (plumbing risers, electrical mains, elevators), and shared amenity spaces. Maintenance of general common elements is funded by HOA dues and assessments.
Governing Documents
The complete set of legal documents that govern a condo association: the Declaration of Condominium, CC&Rs, Bylaws, Articles of Incorporation, and any separately adopted Rules and Regulations. Buyers receive the governing documents as part of the resale certificate package. Jeff Reynolds reads governing documents with buyers to flag restrictions on rentals, pets, alterations, and parking before purchase.

H Terms

HOA (Homeowners Association) Key Term
The legal entity -- typically a nonprofit corporation -- that owns and manages the common areas of a condo building and enforces the governing documents. Every condo unit owner is automatically a member of the HOA. The HOA is governed by a board of directors elected by owners. Day-to-day operations may be delegated to a professional property management company. Learn more: Seattle Condo Property Management.
HOA Dues
See: Dues (HOA Monthly Dues). Learn more: What Are Condo HOA Fees in Seattle?
HOA Lien
A legal claim against a condo unit when the owner fails to pay HOA dues or assessments. Washington State law gives HOAs a super-lien status for a portion of unpaid dues -- meaning the HOA lien takes priority over some mortgage liens. Buyers should confirm there are no outstanding HOA liens on a unit before purchase. A title search will identify recorded liens, and the resale certificate will disclose any delinquency.
Horizontal Property Regimes Act (RCW 64.32)
Washington State's older condo statute governing buildings created before July 1, 1990. It provides fewer buyer protections than the newer Condominium Act (RCW 64.34) -- in particular, it has more limited requirements for resale disclosures and reserve fund transparency. Many older Seattle condo buildings fall under RCW 64.32, and buyers of those buildings have different (generally weaker) statutory rights.

I Terms

Inspection Contingency
A contract contingency allowing the buyer to have the unit and building inspected and to negotiate repairs, a price reduction, or cancel the contract if significant issues are found. Condo inspections cover the unit interior and accessible systems; the building's common areas, envelope, and mechanical systems are typically assessed through the reserve study and meeting minutes review rather than a physical inspection by the buyer's inspector. Learn more: Seattle Condo Inspections Guide.
Investment Property Financing
Loans for condos purchased as rental properties (non-owner-occupied) carry higher interest rates and stricter down payment requirements than owner-occupied loans. Most lenders require 20% to 25% down for investment condo financing. Some buildings with high investor-ownership ratios may face additional lender scrutiny. Learn more: Seattle Condo Investment Rules.

L Terms

LCE -- Limited Common Element Key Term
A portion of the building's common property reserved for the exclusive use of one or more specific unit owners. The most common LCEs in Seattle condos are parking spaces, storage units, balconies, terraces, and patios. LCEs are defined in the condo declaration and transfer with the unit at sale -- but they cannot typically be sold separately. Unlike deeded parking, an LCE parking space is not separately titled. Unlike a licensed space, an LCE cannot be revoked by the HOA. Understanding the distinction matters for financing and resale. Learn more: Seattle Condo Parking Rules.
Leasehold Interest
In a leasehold condo, the land under the building is leased (not owned) by the HOA -- typically from a government entity, institution, or trust. The unit owner buys the improvements (the unit) but not the underlying land. Leasehold condos can be harder to finance and may have resale challenges as the lease term shortens. Seattle has a small number of leasehold condo buildings, primarily in the downtown core.
Licensed Parking Space
A parking space granted to a unit owner by license from the HOA -- revocable by the association under the terms of the license agreement. Licensed spaces are less secure than LCE or deeded spaces. Some Seattle buildings use license agreements for overflow parking. Buyers should confirm the type of parking interest before assuming long-term availability. Learn more: Seattle Condo Parking Rules.
Litigation (Pending Litigation)
Active or threatened lawsuits involving the condo association -- construction defect claims, owner disputes, contractor litigation, or slip-and-fall suits. Pending litigation must be disclosed in the resale certificate. It can affect financing (some lenders will not lend in buildings with active lawsuits) and creates uncertainty about future special assessments. Construction defect litigation involving common areas can be lengthy and expensive but sometimes results in settlements that fund repairs.

M Terms

Master Policy (HOA Insurance)
The building-wide property and liability insurance policy maintained by the condo association, covering common areas and (in some buildings) the unit interiors. There are two main types: "bare walls-in" covers only the structure to the interior side of the walls; "all-in" (or "all-inclusive") also covers unit interiors including original fixtures and finishes. Buyers need to know what the master policy covers so they can purchase the appropriate HO-6 unit-owner policy for the gap.
Meeting Minutes (HOA Minutes)
The written record of condo association board meetings and owner meetings. Meeting minutes are one of the most valuable due diligence documents available to a condo buyer -- they reveal discussion of special assessments, maintenance issues, owner complaints, deferred repairs, and board decisions long before they show up in official documents. Jeff Reynolds reads the last 12 to 24 months of minutes with every buyer.
Move-In / Move-Out Fee
A fee charged by the HOA when an owner or renter moves in or out of a unit. Covers wear on elevators and common areas during the move. Move-in fees in Seattle buildings typically range from $150 to $500. Some buildings also require a refundable deposit. These fees should be disclosed in the resale certificate and are a closing cost consideration for buyers.

O Terms

Owner-Occupancy Ratio
The percentage of units in a condo building occupied by their owners (rather than rented to tenants). Conventional lenders and FHA/VA programs have minimum owner-occupancy requirements. Fannie Mae and Freddie Mac typically require at least 51% owner occupancy for standard condo loans. FHA requires at least 50%. Buildings with high investor/rental ratios may only qualify for portfolio lending at higher rates. Learn more: Seattle Condo Financing Rules.

P Terms

Parking Deed
A recorded legal instrument granting a unit owner a separate fee-simple ownership interest in a specific parking stall. A parking deed creates the highest level of parking security -- the owner holds a property interest that cannot be revoked by the HOA and (in some cases) can be transferred separately. Contrast with LCE parking (exclusive use, not separately titled) and licensed parking (revocable by HOA). Learn more: Seattle Condo Parking Rules.
Pet Policy
Rules established in the governing documents or rules and regulations governing whether pets are permitted, what types, how many, and any size or breed restrictions. Pet policies in Seattle condos range from no restrictions to no pets allowed. Policies can be amended by the HOA board or membership, so buyers who rely on current pet permissions should understand that future changes are possible. Learn more: Seattle Condo Pet Policies.
Property Management Company
A professional firm hired by the HOA board to handle day-to-day building operations -- collecting dues, paying vendors, coordinating maintenance, enforcing rules, and preparing financial reports. The quality of property management significantly affects building condition and HOA financial health. Well-managed buildings tend to have more organized financials and better-maintained common areas. Learn more: Seattle Condo Property Management.

Q Terms

Questionnaire (Lender Condo Questionnaire)
A form completed by the condo association or property management company on behalf of a buyer's lender. The questionnaire asks about HOA financial health, delinquency rates, owner-occupancy ratio, pending litigation, insurance coverage, and commercial space percentage. Lenders use this information to determine whether the project meets their lending guidelines. A slow or incomplete questionnaire response can delay closing.

R Terms

Rental Cap Key Term
A limit set in the governing documents or rules and regulations on the percentage of units that can be rented at any one time. Common rental caps in Seattle are 20%, 25%, and 30%. When a building is at its cap, new owners who want to rent may be placed on a waitlist -- sometimes for months or years. High rental percentages also affect FHA warrantability and conventional condo approval. Buyers who intend to eventually rent their unit should verify both the cap and the current rental percentage before making an offer. Learn more: Seattle Condo Rental Restrictions.
Rental Waitlist
A queue maintained by the HOA for unit owners who want to rent their unit but cannot do so because the building is at its rental cap. Waitlist positions are typically assigned by application date. In high-demand Seattle buildings, waitlists can run 1 to 3 years. Buyers must understand that purchasing a unit does not automatically confer the right to rent it immediately. Learn more: Seattle Condo Rental Restrictions.
Reserve Study Key Term
A professional engineering assessment of a building's major components -- their current condition, remaining useful life, and estimated replacement cost. Washington State requires condo associations to prepare or update reserve studies regularly. The study is the foundation for reserve fund planning: it tells the HOA how much to save each year. Buyers should request and review the most recent reserve study as part of their due diligence. Learn more: Seattle Condo Reserves Explained.
Resale Certificate Key Term
The legally required disclosure package that a condo association must provide to a buyer within 10 days of mutual acceptance. Under RCW 64.34, the resale certificate must include: the current budget, most recent financial statements, reserve fund balance, reserve study, current and proposed assessments, pending litigation, governing documents, and meeting minutes. Buyers have 3 business days to review it and may cancel for any reason during that window. Learn more: Seattle Condo Resale Certificate Guide.
Rules and Regulations
Separately adopted operational rules that supplement the CC&Rs and bylaws. Rules and regulations can often be amended by the HOA board alone (without an owner vote), making them more flexible but also more susceptible to change. They typically cover: move-in/move-out procedures, guest policies, amenity hours, storage unit rules, bike storage, and package delivery. Buyers should review the current rules and regulations as part of the governing documents package.

S Terms

Special Assessment Key Term
A one-time charge levied on all unit owners by the HOA when reserve funds are insufficient to cover a major repair or unexpected expense. Special assessments range from hundreds to tens of thousands of dollars per unit depending on the scope of work. Washington State requires sellers to disclose any voted or pending special assessments in the resale certificate. A history of special assessments may indicate ongoing reserve underfunding. Learn more: Seattle Condo Special Assessments Guide.
Storage Unit (Deeded vs. LCE vs. Licensed)
Like parking spaces, storage units in Seattle condos can be held as deeded property, LCEs, or licensed spaces. The legal form of the storage interest affects whether it transfers with the unit, can be sold separately, and whether it is counted as square footage. Buyers should confirm the form of any storage unit included in a listing before closing.

T Terms

Title Insurance
Insurance protecting the buyer (and lender) against defects in the chain of title -- undisclosed liens, errors in public records, fraud, or competing ownership claims. Title insurance is typically required by lenders. In Washington State, the buyer customarily pays for the lender's title policy; the seller typically pays for the owner's policy. Condo purchases require a review of both the unit title and any recorded easements or encumbrances affecting the common areas.
Townhome-Style Condo
A condominium unit that occupies multiple floors and has a separate entrance -- typically ground-level -- giving it the feel of a townhome while being legally structured as a condo. Townhome-style condos are common in Capitol Hill, Fremont, and other walkable Seattle neighborhoods. They may have different HOA fee structures and parking arrangements than high-rise units.

U Terms

Underfunded Reserve
A building whose reserve fund holds significantly less than the amount recommended by the reserve study. There is no universally agreed threshold, but industry standards generally consider a building underfunded if reserves are below 50% to 70% of recommended levels. An underfunded reserve signals higher risk of a future special assessment or HOA fee increase. Learn more: Seattle Condo Reserves Explained.
Unit Boundaries
The legal definition of where a unit owner's property ends and the common area begins. Defined in the condo declaration. Common boundary definitions: "paint-to-paint" (owner owns everything inside the painted surfaces), "stud-to-stud" (owner owns the framing), and "centerline" (owner owns to the center of shared walls). Unit boundaries determine who is responsible for plumbing leaks, window replacement, and utility line repairs -- a source of frequent HOA disputes.

W Terms

Warrantable vs. Non-Warrantable Condo
A warrantable condo project meets guidelines set by Fannie Mae, Freddie Mac, FHA, or VA -- enabling buyers to obtain standard conforming loans at market rates. A non-warrantable condo project does not meet those guidelines (due to investor concentration, pending litigation, insufficient reserves, commercial space, or other factors), requiring buyers to seek portfolio or non-conforming loans at higher rates with larger down payments. Non-warrantability can significantly affect resale values. Learn more: Seattle Condo Financing Rules.
Washington State Condo Act (RCW 64.34)
See: Condominium Act (RCW 64.34).

Deep Dives

Full Guides for Every Key Term

Every bolded term in this glossary has a full knowledge base article on the Seattle Condo Authority network.

HOA Fees Explained Condo Reserves Guide Special Assessments Guide Resale Certificate Guide Rental Restrictions Financing Rules Disclosure Requirements Parking Rules Pet Policies Guide Inspections Guide Contingencies Guide Investment Rules Buyer Closing Costs Property Management New Construction vs Resale

Have a Question About Any of These Terms?
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Jeff Reynolds has reviewed hundreds of resale certificates, reserve studies, and governing documents for Seattle condo buyers. A 15-minute call can save you hours of research and help you understand exactly what you are buying into.

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Compass Real Estate • Licensed Washington State Real Estate Broker
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