If you are selling your townhome, condo, or single-family home that is legally platted within a registered Association, you are required by Minnesota state law to provide a “Resale Disclosure Package” to the potential buyer.
This “package” consists of a number of items, including:
- Copies of the Governing Documents (Articles of Incorporation, Declarations, Bylaws, Rules, recorded Amendments, etc.)
- Financial Statements
- Resale Disclosure Certificate
Perhaps the most important component is the Resale Disclosure Certificate. This document must be dated not more than 90 days prior to the date of the purchase agreement. To name a few things, it includes information such as the Association’s Reserve Fund and Operating Fund balances; if there are any outstanding assessments (“dues”) or special assessments against the home; if the Association knows of any pending or imminent special assessments; if there are any lawsuits against the Association; and a statement of insurance coverages.
By state statute, “the Association, within ten days after a request by a unit owner, or the unit owner’s authorized representative, shall furnish the certificate required….” Additionally, there is usually a fee associated with producing these legal documents. “The Association may charge a reasonable fee for furnishing the certificate and any Association documents related thereto.” See the full statute at https://www.revisor.mn.gov/statutes/?id=515B.4-107
In short, this Disclosure allows the potential buyer to have complete transparency into what they are buying.
Most Associations utilize their Management Company to facilitate this requirement on behalf of selling homeowners. We at Sharper Management facilitate all Resale Disclosure requests for our clients. If you are planning to sell your unit, or if you have any questions about Resale Disclosure requirements, please contact us.