An HOA resale certificate is a financial overview of the HOA, including the seller’s current standing with the association. The resale certificate gives specific information about the property that is being sold and where it stands with the HOA; this incudes disclosing any past-due payments or unpaid violations, any pending violations, and all fees that are due upon closing. The document will also include information about the association as a whole – any pending litigation, the amount of funds that the HOA has in reserve, and all planned expenditures for the coming year. The resale certificate may also include other state-specific information.
Purpose of a Resale Certificate
- Allows sellers to disclose their standing with the HOA.
- Lets buyers know that the HOA they are joining is financially sound.
Minimizes financial risk for the HOA. It ensures that if the seller isn’t up to date on payments, it can become the buyer’s responsibility after a certain amount of time and the association won’t be left unpaid.
Protects all parties involved as well reducing liability for the HOA if the seller isn’t up to date on payments.