A complete guide to your Delaware resale certificate

What is a Delaware resale certificate?

A Delaware resale certificate is a document that provides financial information about a unit in a homeowners association (HOA), including unpaid assessments, fees, pending special assessments, and other obligations. When a homeowner decides to sell, the HOA or its management company prepares the resale certificate to inform the buyer of fees, assessments, and other financial commitments that go along with owning the property. In many cases, the buyer’s lender or real estate agent will specifically ask for this document before the deal can progress toward closing.

From a seller’s perspective, providing an accurate, up-to-date resale certificate helps the process run smoothly. By showing exactly what the new owner will be responsible for, it can reduce confusion and limit the likelihood of any post-closing disputes. Buyers, on the other hand, benefit by seeing a clear outline of costs tied to that specific home. These details might include monthly dues, pending special assessments, or recent capital improvement projects that could affect fees in the near term.

For board members and property managers, issuing accurate and timely resale certificates is an important part of HOA governance, maintaining transparency while upholding community standards.

Important: The information in this article is for general informational purposes only and is not intended as legal advice. Laws change frequently and vary by jurisdiction. Always consult an attorney and your property management partner for guidance on resale certificates and resale packages for your Delaware HOA.
 

Are resale certificates required in Delaware?

If your HOA was formed under the Delaware Uniform Common Interest Ownership Act (DUCIOA), a resale certificate or resale package may be required before a sale can proceed. DUCIOA is typically applicable to communities created after September 30, 2009, although certain provisions may still apply to pre-2009 communities under specific circumstances. Older communities governed by the Unit Property Act may not use the term “resale certificate,” but they must still satisfy Delaware’s real estate disclosure obligations. Some older communities have partially or fully opted in to DUCIOA and thus follow its requirements. Buyers generally expect information on current and future association fees, special assessments, capital improvements, and the association’s financial health.

Regardless of which law applies, sellers should confirm with their board, management company, or attorney exactly what must be disclosed. Providing comprehensive information remains standard practice statewide, and omitting it can delay closings or lead to confusion.
 

What information is needed for a resale certificate?

In Delaware, a resale certificate generally focuses on the financial obligations tied to an HOA property. That usually includes whether the seller has paid all fees up to date, listing any future assessments or scheduled increases in monthly dues, and if there are shared costs for major projects on the horizon.
The resale certificate is just one part of the larger “resale package,” which can include a wider range of documents, such as association bylaws, annual budgets, board meeting minutes, insurance policies, and information on any pending litigation involving the HOA. Essentially, it’s the bigger picture of how the association operates, giving a prospective buyer insight into the community’s legal framework and daily upkeep.

By reviewing this information upfront, buyers can make informed decisions and avoid unexpected obligations after closing. Sellers also benefit because providing an accurate resale certificate helps prevent last-minute issues that could delay or derail the sale.
 

How to get a resale certificate in Delaware

Generally, homeowners or their real estate agents request the resale certificate through the HOA or property management company overseeing the community.

Start by contacting either the HOA board or the property management company responsible for day-to-day administration of the community. Many associations request that you fill out a short form or submit a written request, while others provide an online portal for document orders.

Once the request is in, the HOA or management team retrieves all relevant financial data. This might include the seller’s payment history, an updated statement of reserve funds, or any pending special assessments. If the HOA is subject to DUCIOA, the association must provide the resale certificate within 10 days of the request. If it fails to do so, it cannot charge any fee for the certificate. You can sometimes pay an extra fee to speed up the process if your closing date is quickly approaching.

It’s important to request the resale certificate early in the process, especially if you anticipate any complexities. Waiting until the last minute could push back your closing date. By getting the request in promptly, you’ll have time to handle any inaccuracies or outstanding fees that show up in the certificate.

From a board member or management standpoint, accuracy is crucial. In many real estate transactions, buyers have a specified window of time (often referred to as a “review period”) to examine the resale certificate and the broader resale package and decide whether they’re comfortable moving forward. If the certificate or package discloses unexpected fees, special assessments, or HOA rules the buyer didn’t anticipate, they may be able to withdraw from the contract without penalty, provided their purchase agreement grants them that option. If the HOA operates under DUCIOA, the buyer may have the right to cancel the contract within five days of receiving the resale certificate if they did not receive it before signing the purchase agreement. If the resale certificate was provided prior to execution of the purchase contract, the five-day cancellation period may not apply. Older communities not governed by DUCIOA may have different or no statutory cancellation windows.
 

How much does a resale certificate cost in Delaware?

Under DUCIOA, the fee for providing a resale certificate is capped at $200, with an additional charge of up to $50 if the association provides it in paper format. Some HOAs may charge additional fees for expedited (rush) service or for providing large sets of documents, but they cannot exceed these statutory limits for the standard resale certificate if they are subject to DUCIOA. If the association fails to provide the certificate within 10 days of a request, it cannot charge a fee at all. Not all HOAs in Delaware operate under DUCIOA, so buyers, sellers, boards, and owners should consult a qualified attorney for advice specific to their situation.
 

How FirstService Residential can help

Navigating the complexities of real estate transactions within an HOA requires the right expertise. As the leading property management company in North America, FirstService Residential works closely with Delaware HOAs to manage essential administrative tasks, including the preparation and distribution of resale certificates.

Our team is committed to supporting HOAs, board members, and homeowners by providing:

• Accurate and timely resale certificates to prevent delays in property sales.
   
• Comprehensive financial reporting that helps owners and prospective buyers understand their obligations.
   
• Expert guidance on Delaware HOA regulations to help maintain compliance.
   
• Streamlined communication tools for requesting and receiving documents from the HOA.

With years of experience managing communities throughout Delaware, we understand the importance of transparent and well-organized documentation in real estate transactions. Whether you’re a seller needing a resale certificate, a buyer seeking clarity on HOA fees, or a board member responsible for compliance, FirstService Residential is here to assist.

If you need assistance with your resale certificate or have questions about HOA property management in Delaware, contact our team today.