Condo Resale Certificate: What Is in It and How to Read It
A condo resale certificate shows what a unit owes, what the HOA plans to spend, and what could cost you after closing. What is in it, how to read it, and the deadlines to know.
Quick answer
A condo resale certificate is a statement from the association, given to a buyer before closing. It shows the dues and any unpaid amounts on the unit, approved special assessments, the budget and reserves, insurance, lawsuits and open violations. Read it for anything owed, any money the HOA plans to collect, and how much is in reserves. In many states you can cancel the contract within a few days of getting it.
Buying? See the workbook's buyer checklist and financial health scorecard
Which one is for me?
-
I own a condo or I am buying one
CondoWorkbook, $19
A 140-page PDF you print or fill in. It helps you find out who pays for a repair, and what to check before you buy.
See the workbook → -
I am not sure yet
Free sample, $0
12 pages from the workbook as a PDF. Read it first, then decide.
Read the free sample → -
I am on a condo board or I manage buildings
Board Packet Kit, from $149
Word and PDF files for the board: a responsibility chart, an owner guide and notice letters to send to owners.
See the Board Packet Kit →
What a Condo Resale Certificate Is
A condo resale certificate is a short report the association prepares when a unit is sold. The seller orders it, the association or its manager fills it in, and the buyer gets it before closing. It answers two questions: what does this unit owe, and what is going on in this building that a buyer should know about?
States use different names for the same idea. Virginia, Texas and Washington call it a resale certificate. California calls it a resale disclosure package. Massachusetts has the 6(d) certificate, which only covers unpaid charges. Some states and lenders use “estoppel certificate” for the part that states what the seller owes. Whatever the name, it is one of the few documents the association has to stand behind, so it is worth reading line by line.
The certificate is a summary. It points to the documents behind it (the budget, the reserve study, the minutes), and those are where the detail is. If you have not asked for those yet, see how to request HOA documents before buying a condo.
What Is in a Condo Resale Certificate
Each state sets its own list, but most certificates cover the same ground. Here is what you will usually see and what each item tells you.
| Item | What it tells you | What to check |
|---|---|---|
| Regular assessment | The current monthly or quarterly dues for the unit | Does it match the listing? Is an increase already approved? |
| Unpaid amounts | Dues, fines, late fees or interest the seller still owes | Every unpaid amount should be paid at or before closing |
| Special assessments | Assessments approved but not fully paid, with due dates | Who pays the installments after closing, you or the seller? |
| Budget and balance sheet | The association’s income, spending and cash | Is the operating budget running at a loss? |
| Reserves | How much is set aside for big repairs, and sometimes the percent funded | Compare with the reserve study |
| Approved capital spending | Big projects the board has already approved | Are they funded, or will they need an assessment? |
| Lawsuits and judgments | Cases the association is in, as plaintiff or defendant | See how HOA litigation affects buyers |
| Insurance | The master policy, and sometimes the deductible | See master policy vs HO-6 |
| Violations | Open violation notices on the unit, such as an unapproved change | You may inherit the problem if it is not fixed before closing |
| Right of first refusal | Whether the association can buy the unit first, or must approve the sale | See the condo board approval process |
| Rental limits | Caps or rules on renting the unit | Matters if you plan to rent it out now or later |
| Transfer and other fees | What the association charges when a unit changes hands | Who pays it under your contract |
How to Read It in 15 Minutes
You do not need to be a lawyer to get most of the value out of a resale certificate. Work through it in this order.
- Check the date. Texas, for example, requires the certificate to have been issued within the last three months. An old certificate can miss a recent assessment or vote. If it is more than a month or two old, ask for an update before closing.
- Find every dollar owed. Add up unpaid dues, fines, fees and any special assessment installments. Make sure your closing statement shows the seller paying what was owed before closing.
- Read the special assessment section twice. A “no” here only means nothing has been approved yet. Look at the approved capital spending and the reserves too. If big projects are coming and reserves are thin, an assessment may follow. Our special assessments guide shows how to score that risk.
- Compare reserves with the reserve study. If the certificate gives a reserve balance, check it against what the latest reserve study says the building should have.
- Look for lawsuits. Any case where the association is a defendant, or a construction defect suit it filed, can affect dues, insurance and your ability to get a loan.
- Check the unit’s own record. Open violations or unapproved alterations on the unit can become your problem after closing.
- Note what is missing. If a line is left blank or says “not available,” ask why in writing.
Red Flags on a Resale Certificate
- A special assessment approved but not on the listing. Ask the seller to pay it or credit you for it.
- Approved projects with no funding source. That is a future assessment or a loan.
- Reserves listed as zero or “unknown.” Either there are no reserves or nobody is tracking them.
- A lawsuit against the association. Ask what it is about, whether insurance covers it, and how much is at stake.
- Dues that rose sharply this year or are about to. Ask why. It is often the first sign of a reserve problem.
- A right of first refusal or approval step you were not told about. It can delay closing.
- An expired or missing insurance line. Lenders will ask, and so should you.
Deadlines, Fees and Your Right to Cancel
These rules come from state law. Here is how a few states handle it. Click through for each state’s full guide and sources.
| State | What the law calls it | Association deadline | Buyer can cancel? |
|---|---|---|---|
| Virginia | Resale certificate (§ 55.1-2309) | 14 days after a written request | Yes, within 3 days after getting it, unless the contract says otherwise |
| Texas | Resale certificate (§ 82.157) | 10 days after a written request | Yes, within 5 days after getting the documents, if you did not get them before signing |
| Washington | Resale certificate (RCW 64.90.640) | 10 days after the owner’s request | Yes, within 5 business days after getting it, if it came 5 business days or less before signing |
| California | Resale disclosure package (Civil Code 4525) | 10 days after a request (Civil Code 4530) | Check your purchase contract for review and cancel terms |
| Florida | Seller’s disclosure documents (s. 718.503(2)) | The seller must provide them | Yes, within 7 business days after signing and getting them, if not given earlier |
| Illinois | Section 22.1 disclosure | 10 business days after a written request | No window in the statute. Check your contract |
| Massachusetts | 6(d) certificate | 10 business days after a written request | No statutory window |
Fees vary too. Washington caps the resale certificate fee at $275, and Illinois caps the Section 22.1 package at $375, adjusted for inflation. In most states the seller orders and pays, but your contract decides that. Cancellation windows usually end at closing, so read the certificate as soon as it arrives.
Questions to Ask
Send these to the manager or the board, through the seller’s agent if needed, and keep the answers in writing.
- Has the board discussed a special assessment or a loan in the past 12 months, even if nothing has been approved?
- What does the latest reserve study say about percent funded, and when was it done?
- Are any big projects (roof, elevator, plumbing risers, facade) planned in the next five years?
- Is the association in any lawsuit, or planning to file one?
- What is the master policy deductible, and when can it be passed on to an owner?
- Are there any open violations or unapproved changes on this unit?
- Is the certificate fee or a transfer fee charged to the buyer?
Frequently Asked Questions
Who pays for the condo resale certificate?
Usually the seller, because the seller is the one the law requires to deliver it. Some contracts shift the cost or a transfer fee to the buyer, so read yours. Some states cap the fee, such as Washington at $275 and Illinois at $375 adjusted for inflation.
How long does it take to get a resale certificate?
Many states give the association about 10 days after a written request, such as Texas, Washington and California. Virginia allows 14 days, and Illinois 10 business days. Order it as soon as the contract is signed, because your review window may start when it arrives.
Is a resale certificate the same as an estoppel letter?
Not quite. An estoppel letter or certificate usually states only what the seller owes the association, so the closing agent can pay it off. A resale certificate is broader and covers the budget, reserves, lawsuits, insurance and rules. Some states combine them and some use different names.
Can I back out after reading the resale certificate?
In some states, yes. Virginia, Texas, Washington and Florida all give buyers a short window to cancel after getting the documents, if the timing rules are met. Other states leave it to the purchase contract. Ask your agent or attorney before the window closes.
What if the resale certificate is wrong?
In some states a buyer is protected if the certificate understates what is owed. New York, for example, limits a buyer's liability for unpaid common charges to the amount stated in the association's statement. Rules differ by state, so if you find an error, report it in writing before closing and ask an attorney what it means for you.
Important: This article is for educational purposes only and is not legal advice. Resale disclosure rules, deadlines, fees and cancellation rights vary by state and change over time. Always read your purchase contract and the association’s governing documents, and check the current statute for your state. For advice on a specific purchase, talk to a real estate attorney licensed in your state.
Try 12 pages of the CondoWorkbook free
See the 15-document buyer checklist and the questions for the HOA board and insurance agent before you decide. Enter your email and we send you the 12-page PDF. We also send the free due diligence checklist: every document to request and the red flags to watch for.
We only use your email to send what you asked for. See our privacy policy.
Related Articles
How to request HOA documents before buying a condo: who asks, what to put in the contract, a sample request you can copy, state deadlines, and what to do if the HOA is slow.
Meeting minutes reveal what the board is worried about. Learn the fast-scan technique to find deferred maintenance, disputes, and financial concerns.
Is a condo special assessment tax deductible? For a home you live in, usually not, but an assessment for improvements can raise your basis. Rentals follow different rules. What the IRS says.
Active or recent HOA litigation affects insurance, lending, and resale value. Learn what to look for and how to assess the risk.
HOA insurance deductibles can be shockingly high. Learn how they work, who covers the cost when a claim is filed, and how to protect yourself.
Your HOA's master policy doesn't cover everything. Learn the difference between master policies and HO-6, where the gaps are, and what you need.
A reserve study reveals whether your HOA can afford future repairs. Learn what to look for, how to read funding levels, and the red flags that signal risk.
Special assessments can cost thousands. Learn what triggers them, how to evaluate risk before buying, and what signs to watch for as an owner.
Who writes CondoWorkbook
CondoWorkbook guides are written and published by S-Block Technologies. Each guide is based on how condo declarations, CC&Rs, bylaws and master insurance policies usually split repairs, and on the state laws it names. We update a guide when a law changes or a reader tells us something is wrong. We are not lawyers, and no lawyer reviews these guides, so always check your own documents.
Last updated . Corrections: business@sblocktechnologies.com. More about us
Did this answer your question?
Buying a condo? Check it before you close.
The CondoWorkbook has a 15-document buyer checklist, a meeting minutes worksheet, reserve study notes and a financial health scorecard, plus questions for the board and the selling agent, in one printable PDF ($19).
View the Workbook