Resale Disclosures: What They Are & Why They’re Needed
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.
Spring Is Coming…And So Is the Home Selling Season
Selling Your HOA Property If 2020 begins your moving journey, there’s a few things to take care of as you prepare your property for sale. Staging First of all, staging your townhome or condo is an important part of the process; this helps potential buyers visualize themselves and their unique style in the space. Prepare by hiding personal items like photos, toiletries, and knickknacks. As you start putting those away (or have decided to get a jump start on packing), make sure you label everything. There are specialized apps or ways to utilize default apps (like Notes) to help keep organized. Take a snapshot of each box’s interior so you know where all of your important items are kept. In addition, make a list of things that can be packed in advance and what can be left for later. Decor, for example, can be some of the first packed away-especially if it’s distracting to the eye. Plus, if your closets are too full as you’re showing the space, remove about half of it to make the storage look larger. Try to do the same for any other spaces like your pantry. De-clutter/Recycle A clean and minimal space will also help your sale while allowing you a chance to declutter. When you’re packing, ask yourself if you still need this item. Whether you’re downsizing or upgrading, it’s good practice to go through your things so you’re not dragging around unnecessary items through the years. Re-arranging Ask your real estate agent how you should stage your furniture. They will most likely know what’s popular in interior décor and how your property can fit that trend; see whether a piece needs to be moved to open up the space or put in storage if it’s too distracting. Quick Fix Look for any quick fixes like a leaky faucet or outdated hardware. A simple paint job or updated hardware can be the key to make your space look more modern on a budget. We hope these tips will help you prepare for a successful sale and move. You may find resale documents on the Sharper Management website, or click here.
How Associations Work – Sharper Management’s Role
While the elected board of a CIC, or Common Interest Community, operates on behalf of preserving their community, they will most likely hire a management company to aid them in the day-to-day duties. The management company will act under the board’s orders and takes direction from them on how to manage the association under their specific regulations. In some cases, the management company will also assist with the budget process, prepare board meetings, and serve as a consultant in the event of issues in the association’s community. Essentially, management companies are there to make it easier for the board to uphold their community’s standards and investment in their homes. Our role as a management company to many association communities includes helping the board in their administrative, maintenance, and communication duties. Our high-quality service revolves around a culture of communication, teamwork, and growth; we show this through our typical services, which we further outline on our website. In general, our team helps the board manage the maintenance of the community, staffing a 24-hour emergency phone line and help facilitating emergency services, providing and maintaining a web portal that all homeowner and board members can utilize, taking care of all aspects of the financial management of the association, help facilitating various needs or questions from homeowners within the association, and so much more. Our services may differ slightly by type of CIC we are managing, but we follow our overarching values as a locally-owned company dedicated to supporting our partnered associations. We help protect each association member’s investment in a home by preserving the property and streamlining communication between unit owners and the board, the most important relationship in a Common Interest Community. We are proud to be managing the properties you call home, and look forward to continuing to support all members of the association.