We’ve all heard the phrase “buyer beware!” When it comes to buying a home, the single largest purchase most people will make, it’s important to be careful. Make sure that you get all of the information you are entitled to by law, and that you get it when you are supposed to. It’s important to review all of the information about the community your future home is in, as well as the information about the home itself.
What is the law about resale disclosure in Tennessee?
The Tennessee Condominium Act of 2008
defines the information that associations must keep and which must be provided on the request of an owner, buyer or lender, to any owner, buyer or their authorized agents. (So your realtor can request the information on your behalf.) The information must be provided within 10 business days of the association getting the request. Only associations formed after 2008 are subject to the Condominium Act of 2008; an experienced realtor or real estate attorney can help get information from older associations.
Generally speaking, the information provided by a Tennessee condominium association or other community association should include the master deed or declaration, bylaws, charter or articles of association and any amendments to them. You should be provided with a copy of the current rules and regulations of the association, minutes of all meetings for the previous 24 months, current monthly assessment amount and any back fees owed to the association, any fees due as part of the sale, any additional association fees, insurance coverage that the association carries, any pending lawsuits or judgments involving the association and the total amount of any dues that are more than 60 days past due throughout the association.
You are also entitled to the most recent balance sheet, income statement and approved budget for the association. The budget must include the amount held in reserves and whether or not a reserve study has been done. It must also include projected expenses for the year and how the assessment paid by each unit is calculated, as well as the amount of debt the association has.
To learn more about resale packages, what information they include and how to obtain one, check out our interview with resale expert Marlayna Bohrman.
Why does the property management company handle resale packages?
The property management company handles all of the accounts receivable for the association and typically has the rest of its accounting information handy as well. Some associations direct buyers and sellers to their association attorney to order the package, but the attorney ends up reaching out to us, ultimately.