Thursday February 27, 2025
Selling a home in a community association can feel like a juggling act, especially if it’s your first time navigating paperwork required by state regulations. In West Virginia, one of the most important documents to understand is the “resale certificate.” This document plays a key role for prospective buyers, offering an inside look at the financial and legal landscape of the property’s homeowners association (HOA). And for you as a seller (or a board member guiding residents through the process), being prepared can help things move more smoothly. Below, we’ll take a close look at what a West Virginia resale certificate actually is, why it matters, and how to use it.What is a West Virginia resale certificate?
A West Virginia resale certificate is a formal document which provides details about an HOA-governed property. It discloses any fees, current or upcoming special assessments, and other relevant financial obligations tied to the home. Prospective buyers can gain insight into the broader community’s financial stability and the property’s specific responsibilities.In West Virginia, most modern associations operate under the Uniform Common Interest Ownership Act (UCIOA), which outlines requirements for resale certificates. If a community is subject to UCIOA, the seller must provide the buyer with a resale package — which includes the declaration, bylaws, rules and regulations of the association, and the resale certificate.
The resale certificate must include:
- The monthly association assessment fees and any amounts that the current owner owes to the association
- A statement of any other fees that unit owners must pay the association
- Planned association expenses for the current and next two years
- The association’s reserve fund balance
- The association’s most recent financial statements (balance sheet, income/expense statement, etc.)
- The association’s current operating budget
- Any unsatisfied judgments against the association
- Pending lawsuits involving the association
- Information on insurance coverage provided for the benefit of unit owners
- A statement about whether the HOA board has any knowledge of health or building code violations related to the home or the common areas of the community
How to use a West Virginia resale certificate
The resale certificate plays a key role in the sale of a home. Sellers usually request it from the HOA or property management company early in the selling process so that buyers have time to review it. As the current owner, you’ll want to make sure every piece of information in the resale certificate is accurate. Buyers should pay attention to every line of the certificate, as it outlines the ongoing costs of living in the community, any upcoming fees, and what rules apply to homeowners. If there are outstanding HOA dues or special assessments, buyers may be able to negotiate who pays them before closing. Real estate agents and title companies also use the resale certificate to confirm financial and legal details before transferring ownership.After closing, keep a record of the document. It can be helpful if questions about the sale come up later. Even once you’re no longer the property owner, referencing the details can help clarify which fees were disclosed at the time of the transaction.
Does your HOA prepare the resale certificate?
In most cases, the HOA or property management company is responsible for preparing the resale certificate in West Virginia. The process usually works like this:- The seller or their agent submits a request to the HOA.
- The HOA reviews its records to confirm any outstanding fees, special assessments, and other key details.
- The completed certificate is provided within a set timeframe. Some HOAs charge a fee for this service.
When are resale certificates not required in West Virginia?
In West Virginia, there are circumstances when a resale certificate does NOT need to be provided to a home buyer. For example, if the home is a gift or inheritance, if it’s in foreclosure, if the home is transferred via court order, or if the annual association assessment fees total less than $500, then there may be no obligation to provide the buyer with a WV resale certificate under the UCIOA.What happens if there are errors on resale certificates in West Virginia?
The unit owner is not responsible for any mistakes that the association makes when completing the form. Even if the amount of assessment fees on the certificate is wrong, the new owner may not be required to pay the association any more than the amount on the certificate, so it’s critical to the financial health of the association that the certificate is accurate. The buyer can also cancel the sale if the certificate is not provided. Having a professional property management company handle resale packages and other mortgage-related paperwork can simplify the process for boards and owners alike.What is an HOA resale fee?
An HOA resale fee, sometimes called a transfer fee, covers the cost of preparing and processing the resale certificate. It also helps update HOA records to reflect the new owner. Costs vary by HOA and are typically outlined in the community’s governing documents. Depending on the terms of the sale, this fee might be paid by the seller or the buyer. West Virginia does not set a statewide limit on HOA resale fees, so each association determines its own cost. Sellers should ask their HOA or property management company about any fees upfront to avoid last-minute surprises.Whether your HOA needs assistance with resale certificates, financial planning, compliance with West Virginia regulations, or day-to-day operations, FirstService Residential can provide the expertise and resources to support your community’s long-term success. For more insights into HOA management and real estate transactions, contact FirstService Residential to learn how we can help your community thrive.