What is an Arizona resale certificate?

Arizona resale certificates explained

An Arizona “resale certificate” is an informal term sometimes used to describe a resale disclosure statement, which provides financial and governance-related details about a property located within a homeowners association (HOA).

This disclosure is typically prepared by the association or its management company and delivered during a property transaction, usually when a homeowner is selling. It can give buyers a snapshot of the property's financial standing within the association, such as any unpaid assessments, outstanding fees, or pending violations. The goal is to provide transparency so buyers can better understand what financial obligations or restrictions come with the property.

This article is not intended to provide and does not constitute legal advice or create an attorney-client relationship. Board members should consult their association’s attorney to discuss the legal implications of their decisions or actions prior to proceeding.
 

What does an Arizona resale certificate include?

Arizona resale certificates, or resale disclosure statements, may include:

• A statement of unpaid assessments, current fees, and pending violations
   
• A statement of insurance coverage for the unit
   
• The association’s contact information
   
• The declaration (CC&Rs)
   
• The association’s bylaws and rules
   
• The current operating budget and most recent annual financial report
   
• The most recent reserve study (if available)
   
• A summary of pending litigation
   
• A buyer acknowledgment statement

Some associations may also include meeting minutes, insurance policy summaries, architectural guidelines, or community handbooks. The exact contents may vary depending on the association, so boards, owners, and prospective buyers should consult their professional property management partner and a qualified attorney to guide them through the process of requesting, gathering, or reviewing resale disclosure documents.
 

How to use an Arizona resale certificate

Buyers, sellers, and their real estate teams typically use the Arizona resale certificate to confirm a property's financial status and assess whether the home aligns with their needs and expectations.

For buyers in Arizona, these disclosures can answer important questions such as:

• Are there any outstanding fees or violations?
   
• What are the current monthly assessments?
   
• Is the HOA financially stable?
   
• Are there upcoming capital improvements or special assessments?

Sellers in Arizona use the resale certificate to fulfill disclosure obligations and reduce the risk of unexpected issues that could delay closing. It’s one proactive way to minimize back-and-forth during escrow and help transactions move forward smoothly. It also provides transparency that can build trust with buyers during negotiations. Lenders may review the resale certificate as well. If the community has major financial issues, it could affect loan approval.
 

How to get a resale certificate in Arizona

Typically, Arizona resale certificates are requested by the seller, the seller's agent, or the escrow officer.

Under Arizona law (typically, A.R.S. §33-1806 for planned communities and A.R.S. §33-1260 for condominiums), the HOA or its managing agent is often required to provide the disclosure documents within 10 days of receiving a written request. Most associations work with their property management company to generate and distribute these documents.

Arizona resale certificates are usually delivered in electronic or hard copy format through association web portals, escrow or title companies, or third-party document services that specialize in HOA disclosures. Arizona law allows the HOA to charge a "reasonable fee" for preparation, which is usually paid by the seller unless otherwise negotiated.
 

How long is an Arizona resale certificate good for?

There is no specific statutory expiration for Arizona resale certificates, but they are typically treated as current for around 30 days in practice. Most title companies and lenders prefer recent data, so if closing is delayed beyond a month, updated documents might be requested. Buyers should review the certificate soon after receiving it and work with their real estate and legal teams to resolve any questions or concerns quickly.
 

Who pays for the resale certificate in Arizona?

In Arizona, the cost of the resale certificate is typically paid by the seller, unless the buyer agrees to cover it as part of the sales agreement.

While the fee amount varies by community, Arizona law usually allows HOAs to charge a reasonable fee for the preparation and delivery of resale documents. The cost can range from $100 to $400 or more, depending on the HOA's policies and whether a rush delivery is required. Buyers and sellers are encouraged to confirm the cost upfront so it can be factored into closing costs or negotiated in advance.
 

Is a resale certificate required in Arizona?

Yes. Arizona law generally requires that a set of disclosure documents be provided during the sale of a home in a community governed by an HOA. Buyers generally have five days to review the documents after receipt. If they are unsatisfied, they may be able to cancel the transaction within that window.
 

What happens if a resale certificate is missing or delayed?

If a resale certificate is delayed, it can cause closing delays and may give the buyer the right to cancel the sale. Arizona law typically provides buyers with a five-day review window after receiving the resale documents. If the documents aren’t delivered on time, the buyer’s right to cancel extends until five days after they are finally received. This can complicate timelines and may increase the likelihood of a delayed or canceled sale.

To avoid issues, sellers should request the resale certificate as early as possible, ideally at the time of listing the property.
 

The value of working with a professional management company

Navigating the resale process can feel complicated, especially when legal deadlines and disclosure rules are involved. A qualified property management company can help simplify this process.

At FirstService Residential, we help Arizona HOA boards manage timely and legally compliant resale disclosures. Our dedicated teams prepare resale disclosure documents using secure platforms that integrate with our community databases, so buyers can get accurate, up-to-date information when they need it.

If your community needs help managing Arizona resale certificates or improving how information is shared with prospective buyers, contact us today to learn how our property management experts can help.