When someone buys a home in a managed community, a resale package is part of the paperwork that comes with it. Resale packages tell both the buyer and seller important information about both the individual unit being purchased and about the financial standing of the association. The package includes all governing documents of the association and possibly additional information like the reserve study and board meeting minutes. The resale certificate is one piece of the resale package, but it’s an incredibly important one. The resale certificate provides the buyer with an important level of transparency about the home’s financial standing with the community association.
What does the law in Delaware say about resale packages?
The Delaware Uniform Common Interest Ownership Act
sets all the regulations around condominiums and community associations in the state. In Delaware, a resale certificate must accurately disclose information that is correct to within 120 days of the date that the purchaser gets that certificate. The state is making sure that community associations and sellers are providing buyers with recent financial information only.
The certificate must include the monthly assessments, any fees that the owner must pay – including unpaid dues or violations, how many owners in the community are behind in their dues and how much that totals, reserve account balance, copy of the most recent reserve study, association balance sheet and income expense statement, planned capital expenditures, complete operating budget, any pending litigation or judgments against the association, information about the association’s insurance policies, health or environmental code violations and more. If there are liens against the property, they must be declared as well. These documents must be dated no later than the date on the contract of sale and are legally required to be provided within 10 days of the request by the unit owner.
To learn more about resale packages and certificates, what information they include and how to obtain one, check out our interview with resale expert Marlayna Bohrman when you click the link below.
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