When buying a home in a condo or homeowner’s association,
how do you know what rules will affect you once you move in? In Pennsylvania, sellers in these communities
are required to provide you with a current resale package from the association as
part of the selling process. In our
area, the standard PA agreement of sale specifies that they must order the
resale package—the governing documents for the community—within 15 days of execution
of their agreement.
What the Resale Package Includes
The resale package includes the certificate of resale from
the association, along with all associated documents, such as the community’s declarations,
bylaws, budget, and rules and regulations. In the rules and regulations, you’re
likely to find out whether the community has any pet restrictions, what the parking
arrangements are, whether fencing is allowed, and the community’s rules on exterior
modifications, among other important information.
Why Is the Certificate of Resale Important?
The certificate of resale is important because it discloses whether
the sellers are current on their association fees. Sellers who have not been
paying their fees may owe thousands of dollars and must pay all amounts owed prior
to or at closing for the sale to proceed.
Also listed on the resale certificate are the current
association fee and any capital contribution you must pay at closing as the buyer.
Most association fees are paid on a monthly
basis, but some are biannual or even yearly. If an association is part of a
master association, this should be specified on the certificate as well.
Buyer’s Right to Terminate the Sale
According to the standard PA agreement of sale, buyers may
declare the sale void until they receive the resale package and up to five days
thereafter (or until closing, whichever is sooner). Buyers have
the right to information about the association prior to making a final
commitment on the property.
Almost all associations charge a fee to prepare the resale package,
so some sellers don’t want to order it until inspections are done. It’s wise
for sellers to order the package as soon as possible, however, to shorten the
time buyers can terminate the sale on this basis.
Read more of Annette’s
real estate articles for the latest real estate advice.
If you’re planning to buy or sell a
home, contact Annette Nelson at (610) 247-7892 or annette@preferredhomes.com
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