What is a resale certificate?
A resale certificate is a set of documents that a seller of a condominium provides to the buyer. As noted by Redfin, the resale certificate includes information about the homeowners association (HOA) budget, covenants, conditions, and restrictions associated with the building. This document must be submitted before the sale is finalized usually after the mutual acceptance.
What does the resale certificate contain?
Sellers must include all accurate information related to the property they are selling and its community. The following are some of the information that will be included in the resale certificate, according to the condo law group.
- The seller must inform buyers about the outstanding balance owed to the association
- Amount not paid by the current owner
- Other fees, charges, and balance that must be paid in the community
- Conditions of the property
- The homeowners association budget
- Restrictions and terms
What is the purpose of a resale corticate?
Resale certificates are very important in real estate. Many states require all sellers to provide this document to buyers before finalizing the sale. The information in this document will update buyers about the condition of the property, expenses, and where they stand in the community. Based on this information buyers can know what to expect and make a fact-based final decision about the property.
