Selling in 2019?
Are you thinking about selling your townhome or condo this year? If you are, here are some important things you will want to keep in mind moving forward: You will need to order resale documents When selling in an HOA, there are a few special considerations to remember. The Minnesota State Statute that governs homeowner associations (Minnesota Common Interest Ownership Act – 515B) states that the unit owner must furnish to a purchaser before the execution of any purchase agreement the following documents: [MOU1] the complete set of Governing Documents including the Articles of Incorporation, Declarations, Bylaws and Rules & Regulations, and a release disclosure certificate. To help you gather all of these materials, we have your Association’s Governing Documents on your Association’s website. The important resale documents you need can be found here. https://secure.condocerts.com/resale/ Look for a realtor with HOA experience Hiring a realtor with HOA experience will make the selling process easier for both you and your buyer. HOA–experienced realtors understand the steps needed to sell a condo or townhome and other important information like why resale documents are necessary. Don’t Forget to Stage Your Home Get rid of clutter. Aim for a light and bright look. Stage important rooms first. Remove and/or rent furniture. Rearrange furniture. Add little extras. The finishing touches are always in the details. If you need further information about your property, contact us.
Resale Disclosure Documents
A resale package is a packet of vital information provided to those purchasing a condominium or a home in an association. The package includes a complete set of recorded documents that govern your association. Typically, the documents included are: Annual Financials, Articles of Incorporation, Budget, Bylaws, CC&Rs, Insurance Declaration Page, Regular Meeting Minutes, Resale Certificate/Demand, Reserve Report, Rules and Regulations. If you’re in the process of selling your townhome or condo, you may find resale disclosure documents via the Sharper Management website. Visit us at sharpermanagement.com. Look for the Resale Disclosures link in the menu bar. Or, click here.
Things to Know Before Selling in an HOA
As spring rapidly approaches in Minnesota, you may be thinking of selling your townhome or condominium. In addition to fixing a few things and adding a fresh coat of paint to your walls, there are also a few actions and items you’ll want to familiarize yourself with regarding your HOA before listing your home. Because you live in a shared community, there are rules and guidelines in place for the protection of all owners in your association. Knowing these things before you have an offer in-hand will make your sale a smooth process. A review of the Governing Documents for your association is a good idea to know what kind of things may be questioned about your association early in your selling process. If you need an updated copy of your Governing Documents, they are typically available on your Association’s website through Sharper Management. As the seller, you will be required to provide resale disclosure documents about your HOA. These documents contain a wealth of information for a buyer that include things like: * Pending litigation about the association * Up-to-date information about assessments * The association’s financial status * Covenants and restrictions within the HOA * Any violations about the unit you are selling * Governing documents for the HOA You may request resale disclosures through the Sharper Management website or visit this link directly to learn more. https://www.condocerts.com/
Resale Disclosures: What Are They & Why They’re Needed
If you are selling your townhome or condo 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, and more.) 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. Sharper Management facilitates 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.
Resale Disclosures
Are you selling your unit? You will reach a point in the process where you will need to order a “Resale Disclosure Package.” This typically happens when you have a Purchase Agreement in place with a potential buyer. The potential buyer has a legal right to review the Association’s Governing Documents, financial information, disclosure certificates, dues current information, etc. They have a 10-day period to do this. It is the seller’s responsibility to obtain and provide this Resale Disclosure Package to the potential buyer. Contact Sharper Management when you have reached that point in your selling process and we will help facilitate getting you the disclosure information you will need.