Quick Answer
Before closing on a home in an HOA community, the seller typically orders a resale certificate from the association, giving the buyer a clear picture of dues, the reserve fund, and whether a special assessment is pending. Reviewing it closely can reveal costs or restrictions that aren't obvious from a showing alone.
- Who orders it
- Typically the seller, through the HOA
- What it discloses
- Dues, rules, finances, pending assessments
- When it's provided
- During the sale, before closing
- Why it matters
- Reveals costs and restrictions before you commit
What's Inside a Resale Certificate
A resale certificate typically lists current HOA dues, any outstanding balance on the seller's account, a summary of the association's finances and reserve fund, and whether any special assessment has been approved or is under discussion.
It often includes a copy of the community's CC and Rs and other governing documents, so buyers can see the rules they will be agreeing to as a new owner.
Why Buyers Should Review It Carefully
A resale certificate can surface issues that never come up during a showing, like a lawsuit involving the HOA, a history of rising dues, or a reserve fund that's underfunded for upcoming repairs.
Your agent can help you read through it and flag anything worth negotiating or walking away from before you're locked into a contract.
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Frequently Asked Questions — Resale certificate
Who pays for the resale certificate?
This is typically negotiated between buyer and seller, though the seller often orders and initially covers the cost since it comes from their HOA account.
How long does it take to get a resale certificate?
Timing varies by HOA management company, so it's worth requesting one early in the transaction to avoid delays before closing.
What if the resale certificate shows a pending special assessment?
This is worth discussing with your agent and possibly negotiating who covers the cost, since it can add a significant expense after closing.
Is a resale certificate required for every HOA sale?
Most HOA communities require one as part of the sale process, though specific requirements can vary by association.