NJ resale certificate: What it is and how to get one

What is an New Jersey resale certificate?

When you buy or sell a home, there’s a lot of paperwork involved! If that home is part of any managed community, a resale certificate is part of that paperwork. Resale packages contain documents like an NJ resale certificate that tell the buyer and seller important information about both the association and the individual unit being purchased.

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.
 

What is the purpose of an NJ resale certificate?

The idea is to provide all the relevant information to the buyer. The package is in place to protect both the buyer and the seller. For the seller, the package provides proof of their balance with their association. For the buyer, the certificate lets them know clearly what their fees will be and if there is an upcoming special assessment. An interesting concept in New Jersey law is that debt follows the land. If, for example, you buy a condominium and find out after the sale that the previous owner is $5,000 behind on association dues, you have assumed that debt. If, for example, the seller has back dues or unpaid violations, then the buyer is aware and those issues can be negotiated at closing. The buyer knows that the seller has taken care of all obligations. It should provide peace of mind.
 

Is an EIN the same as a resale certificate?

No. An Employer Identification Number (EIN) is issued by the IRS and used to identify a business entity for tax purposes. Community associations often obtain an EIN to file tax returns, open bank accounts, or apply for financing.

By contrast, an NJ resale certificate in the context of property transactions relates to the transfer of ownership in a community association and focuses on disclosing financial and legal information to a prospective buyer.
 

Are New Jersey resale certificates required when selling your home in a community association?

There is no single statute that mandates an identical “resale package” for every managed community in New Jersey, but certain disclosures are mandatory. For example, the NJ Condominium Act generally requires a certificate of unpaid assessments to be furnished within 10 days of a written request by the owner, purchaser, or lienholder. While PREDFDA typically gives members access to documents like bylaws and financials, it doesn’t typically require boards to bundle them for buyers.

Still, many boards compile a full resale certificate as a best practice. It can help avoid delays, supports lender requirements, and gives buyers a clearer view of their responsibilities and the community’s financial standing.
 

Who pays for the resale certificate?

In most cases, the seller is responsible for covering the cost of the NJ resale certificate, although this may be negotiable depending on the terms of the contract with the prospective buyer. Some associations build the cost into broader administrative fees, while others charge separately.

Costs can range from under $100 to several hundred dollars, depending on the complexity of the documentation and whether expedited service is required. It’s best for sellers to check with their property management company or board in advance to avoid any surprises during the transaction.
 

What are common challenges with resale certificates?

Even though the NJ resale certificate can be a valuable tool for both buyers and sellers, challenges can arise when:

• There is confusion over what needs to be disclosed
   
• Sellers wait too long to request the certificate, causing delays at closing
   
• The information provided is outdated or inaccurate, leading to buyer concerns
   
• Boards or managers do not respond to requests in a timely fashion

Many of these issues can be resolved by having a clear internal process and designated contact for all resale certificate requests. Community associations in New Jersey often partner with management companies that help streamline this process. FirstService Residential offers a 24/7 Customer Care team for homeowners and residents. Our proprietary platform, FirstService Residential Connect™, makes it easy to submit and track important requests and access key community records. This added transparency can help boards and managers stay organized and responsive throughout the resale process.
 

Can buyers back out if they don’t like what’s in the resale certificate?

The NJ resale certificate is intended to give buyers a clear picture of what they are buying into, and it’s possible that the information provided could influence a buyer’s decision to walk away from a sale.

New Jersey does not grant a universal statutory “cooling-off” period tied specifically to resale package delivery. Whether a buyer can cancel depends on:

• Contract language (many contracts give the buyer a set number of days to review the resale package)
   
• When disclosures were made
   
• Any local ordinances or lender requirements that impose additional review rights

Buyers who discover undisclosed material financial issues or upcoming assessments may still have legal grounds to renegotiate or withdraw under common-law contract principles or consumer-fraud statutes, but those rights are case-specific. Reviewing the NJ resale certificate with the help of qualified legal and real estate professionals is essential.
 

How FirstService Residential simplifies New Jersey community management

Managing resale certificates can be time-consuming, especially when your board is already busy creating budgets, evaluating vendor contracts, and handling day-to-day operations. FirstService Residential works directly with board members to help prepare and deliver resale certificate documentation, respond to attorney or agent inquiries, and provide residents with the information they need, all while keeping the board’s priorities front and center.

For more than 25 years, we’ve partnered with condominium, co-op, and homeowners association boards across New Jersey to simplify property management through expert guidance, tailored services, and unmatched support infrastructure. That includes everything from financial planning and vendor coordination to compliance tracking, staff training, energy efficiency initiatives, and more.

Contact FirstService Residential today to learn how our expert teams can help simplify your board’s responsibilities and strengthen your community.