(Feb. 21, 2020) Owners of a condominium unit or a unit in a homeowners association (HOA) must provide buyers what is referred to as a “resale package.”
The resale package contains specific information about the HOA or condo association, which for condos, the information required varies based on how many condos are in the building and must be supplied no later than 15 days prior to closing (the HOA packet must be supplied within 20 days of entering into the contract).
Supplying this packet is an expense to the seller.
Legislation passed back in 2016 set a maximum amount that can be charged by the condo association, HOA, or any authorized agent of either.
The maximum amount set is $250, and the legislation further clarified that the amount charged shall, “not exceed the actual cost to the council of unit owners and up to a maximum of $250, for providing specified information in the form of a certificate within 20 days after receiving a written request from a unit owner.”
In many cases locally, it is customary for these resale documents to be received within the time frame of a few days, but the legislation states a council of unit owners may also charge a reasonable fee of up to $50 for delivery of the certificate within 14 days after a written request by a unit owner, or a fee of up to $100 for delivery of the certificate within seven days.
The most recent legislation clarifies that the disclosure must include:
• the current operating budget of the condominium, including the current reserve study report or a summary, a statement of the status of any reserve or replacement fund, or a statement that there is no reserve fund and
• a statement of any unsatisfied judgments or pending lawsuits to which the council of unit owners is a party, excluding assessment collection suits.
The legislation clarifies the standard of knowledge in a statement as to whether the council of unit owners has actual knowledge of any violation of the health or building codes with respect to the common elements of the condominium.
It also requires the disclosure to contain a statement of the common expense assessment and any unpaid common expense or special assessment adopted by the council of unit owners that is due from the selling unit owner.
– Lauren Bunting is a licensed Associate Broker with Bunting Realty, Inc. in Berlin.