If you’ve ever bought or sold a home of any kind, you know there’s a lot of paperwork involved! If that home is part of any kind of managed community, a resale package is part of that paperwork. Resale packages tell the buyer and seller important information about both the individual unit being purchased and about the financial standing of the association. As a seller, your resale package is providing the buyer with an important level of transparency about your home’s financial standing in the association.

What does Maryland law say about resale packages?

The Maryland Condominium Act sets all the regulations around condominiums and community associations. In Maryland, a resale package includes a copy of the declaration, the bylaws, the rules and regulations of the condominium and a statement from the owner as to whether or not the property violates any health or building codes or any bylaws of the association.
The documents must also include a certificate that details the monthly assessments, any fees that are past due, a statement of a planned capital expenditure if it isn’t included in the current operating budget, association balance sheet and income expense statement, any pending litigation or judgments against the association, a general description of the association’s insurance policies, a description of common amenities and more. These documents have to be provided to the buyer at least 15 days before closing. 

At what point in the purchase process does the resale package come into play?

Generally speaking, the resale package is ordered by either the buyer or seller after the purchase contract is signed. In Maryland, the state requires that the seller provide the buyer with this information. You, as the seller, will have much of the information on hand already, such as governing documents, rules and regulations and bylaws. You can share that with the buyer ahead of the contract being signed, if you feel comfortable doing so. But, you are still legally obligated to order the complete and current resale package.
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. 

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Tuesday April 25, 2017