Revised Code of Washington requires, with limited exceptions, that a unit owner shall furnish to a purchaser before execution of any contract for sale of a unit, or otherwise before conveyance, a resale certificate, signed by an officer or authorized agent of the association and based on the books and records of the association and the actual knowledge of the person signing the certificate.
Where do I get the resale certificate?
Request it from your association. We will provide you a blank copy of the form for the association to complete for free when you submit a flat fee MLS listing through our website. It costs only a one-time fee of $95.
Once I request the resale certificate from the association, how long do they have to provide it?
Within 10 days.
Can the association charge a fee for providing the resale certificate?
Yes, up to $275.
What are the exceptions to providing?
- Where delivery of a public offering statement is required.
- A conveyance by gift, devise, or descent;
- A conveyance pursuant to court order;
- A disposition by a government or governmental agency;
- A conveyance by foreclosure;
- A disposition of all of the units in a condominium in a single transaction;
- A disposition to other than a purchaser as defined in *RCW 64.34.020(26); or
- A disposition that may be canceled at any time and for any reason by the purchaser without penalty.
What type of information is in the resale certificate?
As of this writing, the following:
- A statement disclosing any right of first refusal or other restraint on the free alienability of the unit contained in the declaration;
- A statement setting forth the amount of the monthly common expense assessment and any unpaid common expense or special assessment currently due and payable from the selling unit owner and a statement of any special assessments that have been levied against the unit which have not been paid even though not yet due;
- A statement, which shall be current to within 45 days, of any common expenses or special assessments against any unit in the condominium that are past due over 30 days;
- A statement, which shall be current to within 45 days, of any obligation of the association which is past due over 30 days;
- A statement of any other fees payable by unit owners;
- A statement of any anticipated repair or replacement cost in excess of five percent of the annual budget of the association that has been approved by the board of directors;
- A statement of the amount of any reserves for repair or replacement and of any portions of those reserves currently designated by the association for any specified projects;
- The annual financial statement of the association, including the audit report if it has been prepared, for the year immediately preceding the current year;
- A balance sheet and a revenue and expense statement of the association prepared on an accrual basis, which shall be current to within 120 days;
- The current operating budget of the association;
- A statement of any unsatisfied judgments against the association and the status of any pending suits or legal proceedings in which the association is a plaintiff or defendant;
- A statement describing any insurance coverage provided for the benefit of unit owners;
- A statement as to whether there are any alterations or improvements to the unit or to the limited common elements assigned thereto that violate any provision of the declaration;
- A statement of the number of units, if any, still owned by the declarant, whether the declarant has transferred control of the association to the unit owners, and the date of such transfer;
- A statement as to whether there are any violations of the health or building codes with respect to the unit, the limited common elements assigned thereto, or any other portion of the condominium;
- A statement of the remaining term of any leasehold estate affecting the condominium and the provisions governing any extension or renewal thereof;
- A copy of the declaration, the bylaws, the rules or regulations of the association, the association's current reserve study, if any, and any other information reasonably requested by mortgagees of prospective purchasers of units. Information requested generally by the federal national mortgage association, the federal home loan bank board, the government national mortgage association, the veterans administration and the department of housing and urban development shall be deemed reasonable, provided such information is reasonably available to the association;
- A statement, as required by RCW 64.35.210, as to whether the units or common elements of the condominium are covered by a qualified warranty, and a history of claims under any such warranty;
- A statement describing any requirements related to electric vehicle charging stations located in the unit or the limited common elements assigned to the unit, including application status, insurance information, maintenance responsibilities, and any associated costs; and
- If the association does not have a reserve study that has been prepared in accordance with RCW 64.34.380 and 64.34.382 or its governing documents, the following disclosure:
"This association does not have a current reserve study. The lack of a current reserve study poses certain risks to you, the purchaser. Insufficient reserves may, under some circumstances, require you to pay on demand as a special assessment your share of common expenses for the cost of major maintenance, repair, or replacement of a common element."