Buying a home is a major investment, the largest single one that most people will make. It’s a complex transaction, so there’s a lot of paperwork involved. If the home you are buying is in a managed community, there’s an additional element to that paperwork: a resale certificate. Also called a closing certificate, estoppel, dues statement or paid assessment letter, the resale certificate provides you with important financial information about your home and the community it is in.
What is the law about resale certificates in North Carolina?
To learn more about resale packages, what information they include and how to obtain one, check out our interview with resale expert Marlayna Bohrman.
In North Carolina, the North Carolina Condominium Act
, also known as Chapter 47C, defines state law regarding condominiums and community associations formed after 1986. It sets out how condominiums handle all sort of activities, from their initial setup and what insurance coverage they must carry to fines for violations and meetings. In terms of resale certificates, North Carolina’s law is one of the simplest. It states that the unit owner must provide a prospective buyer a statement of the monthly assessment fees charged by the association and any other fees that unit owners must pay, and that it must be provided before the property is transferred.
How does the buyer get a resale package? Who requests that?
There’s no definite answer to that. In North Carolina, the seller is required by law to provide the information to the buyer, so either the seller or their agent requests the package. It’s the same in Virginia. In New Jersey and New York, the buyer most often requests the package. Anyone involved in the purchase can buy the package: buyer, seller, realtor, closing agent, lender or attorney. Sometimes the lender will order it. But some states require that a specific party in the transaction order the resale package.