What is a DC resale certificate? Your in-depth guide

What is a DC resale certificate?

A DC resale certificate is a disclosure package that outlines the financial, legal, and operational details of a condominium association (COA). In Washington, DC, the resale certificate is generally required by law for condominiums under the DC Condominium Act, though homeowners associations (HOAs) may provide similar packets.

The resale certificate contains important details about the association's rules, budget, reserve funds, upcoming assessments, and whether the unit is in compliance with those rules. It may also include information about pending litigation or insurance coverage. The goal is to help the buyer understand key aspects of the community they’re buying into.

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’s included in a DC resale certificate?

A complete DC resale certificate can include financial, legal, and operational information relevant to the property and the association. The document may contain:

• A summary of association dues, fees, and assessments
   
• The amount currently owed by the unit
   
• The association’s current budget and reserves
   
• Recent meeting minutes and policy changes
   
• Rules, regulations, and bylaws
   
• Association insurance coverage details
   
• Notices of pending legal matters or disputes

Each of these components plays a role in painting a full picture of the association’s health. Buyers can use this information to estimate their monthly costs, understand any potential risks, and plan for their responsibilities as a new owner.
 

How to use a Washington, DC resale certificate

Buyers use a Washington, DC resale certificate to evaluate the financial health of the community and the expectations placed on homeowners. Sellers use it to meet disclosure requirements under the DC Condominium Act. Real estate agents, attorneys, and property management professionals also rely on resale certificates to facilitate smooth transactions.

Once received, buyers should review the resale certificate in full. They should pay close attention to:

• The current dues and whether they’re expected to increase
   
• Any unpaid assessments or violations associated with the unit
   
• The association’s budget, reserves, and insurance

These insights help the buyer decide whether the community is a good financial and lifestyle fit. If they find concerns or red flags, they can address them before proceeding with the purchase.

In DC, the buyer typically has three business days to cancel the contract after receiving the resale certificate, depending on the agreement and timing. Generally, if the certificate is received after signing the contract, the three-day cancellation period begins when the buyer receives it. If the certificate is received before the contract is signed, the three-day period starts on the date the buyer signs the contract. If the seller has not provided the resale certificate within 10 business days after the contract is signed, the buyer may have the right to cancel the contract before the documents are received.
 

How to request a resale certificate

To get a DC resale certificate, the seller or their agent typically contacts the condo association or its property management company. Most associations have a formal request process, and some charge a fee for preparing the documents. In Washington, DC, this process is governed by the DC Condominium Act and related regulations.

The exact steps may vary depending on the association, but in general:

1. The seller (or their representative) submits a request in writing to the association or management company.
    
2. The association prepares the resale certificate within the legally required timeframe, which is generally 10 days in DC.
    
3. The completed resale certificate is delivered electronically or in print to the seller, who passes it along to the buyer.

The association may include various disclosures and documents, such as financial statements, meeting minutes, and copies of the governing documents. Because the resale certificate reflects the status of both the unit and the entire association, accuracy and timeliness are critical.
 

Why are DC resale certificates needed?

A DC resale certificate is required because it protects all parties involved in a property transaction. For buyers, it provides transparency about the condition of the community, any financial obligations, and rules they’ll need to follow. For sellers, it meets legal disclosure obligations and helps prevent delays during closing.

The resale certificate also helps protect the association. By documenting everything in writing, associations can avoid miscommunication and support the ongoing stability of the community. This clarity makes it easier for buyers to step into their new responsibilities without surprises.

Without a DC resale certificate, buyers might be unaware of fees, restrictions, or obligations that could impact their decision to move forward. That’s why this document isn’t just a formality — it’s an essential part of sales in condo associations.
 

Who is responsible for preparing the DC resale certificate?

Typically, the condo association or its property management company prepares the DC resale certificate. The responsibility lies with the seller to request it, but the actual content is compiled by the managing entity. It’s important that the information be up to date and accurate.

Property management companies often play a key role in this process. They manage the records, financial statements, and compliance information needed to complete the resale certificate. A strong property management team can streamline the process, respond quickly to requests, and help both parties feel confident as they move toward closing.
 

When should you request a DC resale certificate?

Sellers should request the DC resale certificate as soon as they list the property or receive a serious offer. Because preparation can take several days, early action helps avoid delays later in the sale process. Some buyers won’t proceed with a purchase until they’ve reviewed the certificate.

Real estate agents may also recommend requesting the resale certificate early, especially in competitive markets where buyers move quickly. Proactive planning can help keep the transaction on track and support a smoother experience for everyone involved.
 

Common questions about DC resale certificates

Buyers and sellers often have questions about how DC resale certificates work. Below are a few of the most common:
 

Do I need a DC resale certificate if I’m selling my home myself?

Yes. Whether or not you’re using a real estate agent, DC law requires this disclosure for the sale of condominium units within a community association.
 

How long is the resale certificate valid?

Generally, a resale certificate is considered “valid” for 30 days from the date of issuance. While there isn’t a statutory expiration date for resale certificates under DC law, buyers and lenders will often request an updated version to capture any new fees or litigation.
 

What happens if the resale certificate reveals unpaid dues?

If a unit has unpaid assessments or fees, those will need to be addressed before the sale is finalized. The seller may need to bring the account current, or the parties may negotiate a resolution at closing.
 

Why property management matters in resale certificate preparation

A well-prepared DC resale certificate depends heavily on the support and accuracy of the community’s management team. Property managers are often responsible for assembling and delivering the documents, and they serve as a point of contact if questions arise.

Experienced property management companies have systems in place to track deadlines, manage financials, and maintain compliance with DC laws. This attention to detail helps eliminate confusion and reduces the risk of delays during the transaction process. When sellers and buyers trust the quality of the certificate, it creates a more seamless experience.

At FirstService Residential, we support community associations throughout Washington, DC, by simplifying the resale certificate process. Contact a member of our team today to learn more.