BBF Resources works with condominium buyers seeking a professional opinion about information in the resale certificate provided to them by the seller.
The resale certificate contains financial information about the individual unit and the homeowner association, governing documents, a reserve study, and other information buyers should thoroughly understand before purchasing a condominium.
By providing professional insight and identifying potential red flags, BBF Resources provides clients with the information they need in order to make an informed decision about their condominium purchase.
What is a Condo Resale Certificate?
A condo resale certificate is a term used to describe a set of documents and specific information a condo seller is required by Washington state law to provide to a prospective buyer before a sale closes. New construction and apartment to condo conversions are required to provide a Public Offering Statement which includes some similar information to a resale certificate.
How long does the buyer have to review the resale certificate?
Once the buyer receives the complete, signed resale certificate they have 5 days to review it.
During the 5 day review period, a buyer can terminate their offer for any reason and receive the full amount of their earnest money back.
What information is included in the resale certificate?
Washington State law clearly defines what must be provided in a resale certificate.
RCW 64.34.425 applies to all condos created before July 1, 2018 and have not amended their declaration to be subject to the new law.
RCW 64.90.640 applies to all condos established after July 1, 2018 and those which have amended their declaration to be subject to this law. Some sections of this law apply to all condos, regardless of when they were created.
Why is the resale certificate so important?
One of the biggest risk factors related to a condo purchase is the risk of a future special assessment. Information in the resale certificate can provide indicators whether the HOA will face a major expense during the time the buyer owns a unit. Interpreting the reserve study, the governing documents and a holistic evaluation of the financials will provide the buyer with as much information as possible in order to make an informed decision about a purchase.