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 tell the buyer and seller important information about both the association and the individual unit being purchased.

Why is it important for the buyer to have all of this information?

The idea is to make sure that all the relevant information is provided to the buyer by the seller. 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.  
To learn more about resale packages, what information they include and how to obtain one, check out our interview with resale expert Marlayna Bohrman.
Tuesday April 25, 2017