Buying or selling a home can be a complicated process on its own. If that home happens to be part a Community Association, there's going to be a few added steps to what seems like an already overwhelming process. So where to start? Well, the basics, of course. Although each State may have varying requirements when it comes to specifics, the one thing they all have in common is that a general resale package shall be made available to those involved in a Real Estate transaction. Again, the exact content will vary, however resale packages ensure that the buyer is receiving the information they need in order to make a fully informed decision on what likely will be one of the largest investments they will make. It also gives title companies the information they need to execute a smooth closing process.
TABLE OF CONTENTS
- The Resale Lifecycle
- Section 1: Listing the Unit for Sale and Contract Negotiations
- Section 2: After the Contract has Been Signed
- Frequently Asked Questions:
The Resale Lifecycle
Below you can find the typical order of events when a unit is being sold. It is important to note that not all transactions go the exact same way, however most will follow this basic outline.
Section 1: Listing the Unit for Sale and Contract Negotiations
All transactions have to start somewhere. Owners or their Realtors may contact the Community Management company in preparation of listing their home, or while they are in the contract negotiation process to obtain basic information such as:
- Assessment rates
- Community Restrictions (rental restrictions, age restrictions, etc.)
- Buyer approval processes
- Community Amenities
There are no requirements at this stage (in most States) that will compel owners or their representatives to seek this information out from the management company, however many will opt to do so to ensure that they will have accurate information in their listing.
Section 2: After the Contract has Been Signed
Generally this is the stage where all the questions and requests for documents start pouring in from Realtors, Title Companies, and Lenders and the point in which Community Associations and their managing agents are obligated to fulfill these requests to satisfy any State statutes.
The Owner, Realtor, Attorney, or Title Company will submit their official request for required Resale Disclosure documents. These documents can include, but are not limited to the following:
Resale Disclosure Information
The actual document names and content will vary by State, however the most general term that is used is a Resale Certificate. This is a document or a collection of documents that provides general and financial information for the Community as a whole as well as the specific unit that is being sold, including any account balances that will be due to the Community and/or managing agent at closing. Most jurisdictions have statutory requirements in place that govern exactly what information it must contain and a time frame in which it needs to be provided. Failure to provide could result in a Community or Managing agent violating these statutes. The most common pieces of information that are required to be disclosed are as follows:
- Capital expenditures, both current and anticipated
- Operating and Reserve account balances
- Budget information
- Pending special assessments
- Legal disclosures
- Insurance information
- Meeting minutes
- Pending unit violations
- Unit account balances
- Governing Documents (Articles, Declarations, Bylaws, Rules, etc.)
Although there are no State requirements that govern the content and delivery of Lender Questionnaires, often times lenders will require them in order to fund a purchaser's loan. It's important to note that these are considered separate products from the typical Resale Disclosure information and must be submitted as a separate request. A lender will need to follow the same steps of placing their request via the Marketplace.
Frequently Asked Questions:
How are these requests submitted and is there a cost?
For An Associa managed Community utilizing Community Archives, shoppers will be directed to the Marketplace to submit their document requests. A processing fee will apply for most requests and the costs will vary depending on several factors such as the Jurisdiction, documents selected and delivery times. Upon payment of any applicable processing fees, (unless up front collection is prohibited) the document order will be prepared accordingly and delivered to the shopper within the requested timeframe.
How long will it take to receive the information?
All orders will show an estimated delivery date to the shopper when the request is submitted. The delivery times are determined and can be affected by several factors including:
- Requirements by the State/Jurisdiction
- Type of document requested
- Priority service selected
- When payment is received
The most common window for delivery will be within 10 business days from receipt of payment, however it is extremely important to note the variables above.
Who will receive the information once it is delivered?
This will depend on who submits the request. Anyone involved in the Real Estate transaction can submit the order and Community Archives will deliver the information to the shopper that placed the order as well as any additional recipients the shopper added during checkout. Once the information is sent to the shopper, they can forward to whoever needs to receive it.