Thursday April 24, 2025
What is a Maryland resale certificate?
A Maryland resale certificate is a critical document in a condominium’s resale disclosure package. It discloses essential information about a property located within a condominium association (COA) as required by the Maryland Condominium Act. Homeowners associations (HOAs) must provide a comparable resale disclosure package under the Maryland Homeowners Association Act, though this law doesn’t use the term “certificate” specifically.
Whether you're selling a condo or a home in an HOA, resale disclosure packages can provide essential financial and operational details about the community and the specific unit or lot being sold. They help buyers make informed decisions and help prevent surprises at closing.Typical resale disclosure packages include:
- Outstanding fees or assessments owed by the current owner
- Monthly dues and special assessments
- Budgets and financial statements
- Reserve study information
- Insurance information
- Governing documents
This article is not intended to 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.
How to get a Maryland resale certificate or disclosure package
To obtain a Maryland resale certificate, the seller or their real estate agent typically submits a request to their board or property management company. Professional property management companies like FirstService Residential can offer digital solutions to help make this process seamless and accessible.Once requested, the management company compiles the relevant documents and disclosures specific to the unit. In Maryland, the law typically requires that the resale disclosure information be delivered to the buyer within a certain period of time:
- Condominium associations (COAs): The council of unit owners typically must provide the resale certificate within 20 days after receiving the unit owner’s written request and the required fee. The seller generally must give the complete resale package to the buyer at least 15 days before closing. The buyer may have the right to cancel the contract within 7 days after receiving the required documents.
- Homeowners associations (HOAs): The association (or its managing agent) typically must supply the resale disclosure package within 20 days after the owner’s written request and payment of the fee (up to $250). Generally, the seller must provide those documents either before the contract is signed or within 20 calendar days after it’s executed. If the buyer has not received all of the required disclosures at least 5 calendar days before entering into the contract, they may have the right to cancel the contract within 5 calendar days after receiving them. There is also a separate 3‑day rescission period if mandatory fees increase by more than 10 percent or other material amendments are made.
Are resale certificates required?
Yes, Maryland resale certificates are generally required by law for properties in a condominium association. A condo sale cannot close without a resale certificate, along with other disclosure documents, under §11-135 of the Maryland Condominium Act. An HOA sale cannot close without the resale disclosure package required under §11B-106 of the Maryland Homeowners Association Act.How to use an MD resale certificate or disclosure package
Once a buyer receives the Maryland resale certificate or the HOA disclosure package, the primary goal is to review the details closely. The document gives insights into the financial and operational health of the association, including dues, upcoming capital projects, and the association's budget.Buyers should pay particular attention to:
- Monthly and special assessments
- The association’s reserve fund and how well it is funded
- Insurance coverage details
- Rules and restrictions that may impact property use
- Pending litigation or large insurance claims that could lead to future assessments
Sellers, on the other hand, should request this information as early as possible in the sales process to avoid delays later on. Boards and property managers should be prepared to provide updated financials and respond quickly to requests.
How long is a Maryland resale certificate valid?
Maryland resale certificates and HOA disclosure packages are commonly considered valid for up to 30 days from the date of issuance. This limited timeframe is because the financial condition of an association can change rapidly, and buyers need the most current information. If a sale is delayed beyond that 30-day window, the seller may be required to request updated disclosures.How much does a Maryland resale certificate cost?
Fees for Maryland resale certificates or HOA disclosure packages can vary depending on the management company and the complexity of the association. In general, Maryland law caps the standard preparation fee for resale disclosure documents at $250, with optional rush fees of up to $50 (14‑day delivery) or $100 (7‑day delivery) and an optional inspection fee of up to $100 for condominiums or up to $50 for HOAs, amounts that adjust biennially with CPI.The seller is usually responsible for paying the fee, though this can sometimes be negotiated as part of the real estate contract. Because the fee covers administrative costs associated with preparing the documents, it’s often non-refundable. It's best to confirm the pricing structure with your property management company early in the process.