What is a condo resale certificate

what is a condo resale certificate

NOTES ON RESALE CERTIFICATES

1. Resale Certificates are designed to give purchasers of units some basic information about the association. They are usually prepared by the association secretary or treasurer upon request of the seller and given to the buyer. The association may charge a reasonable fee for preparation of resale certificates.

2.Many resale certificates made out carelessly. The association officer in charge makes up a form which he or she does not update as conditions change. Resale certificates may have legal consequences and should not be taken lightly.

3. It is important to buyers and sellers of units that they receive a resale certificate in a timely manner. Maine law states that no contract of purchase and sale is enforceable until the buyer has received a resale certificate, and for five days thereafter.

TO: _______________________________

FROM: ____________ Condominium Association (the "Association")

RE: Condominium Unit No _______, and Allocated Interests and Limited Common Elements appurtenant thereto (Collectively, the "Unit") of ______________________________________________________________ Condominium, _______, Maine, (the "Condominium").

The Association, having received a request from ______________, owner of the Unit, pursuant to Section 1604-108 of the Maine Condominium Act, as amended, hereby certifies that as of the date hereof, except as herein stated:

A. The status of monthly Common Expense assessments with respect to the Unit is as follows:

(1) Amount of Monthly Common Expense (including Limited Common Expense) assessment with respect to the Unit is $ _________per month, payable in advance on the first day of each month.

(2) Amount of Current Common Expense (including Limited Common Expense) assessment with respect to Unit which is currently due is $__________

(3) Assessments for Common Expenses (including Limited Common Expense), and special assessments in arrears is $_____________

TOTAL DUE (2) & (3) $__________

B. Other fees payable by Unit Owners: There are no unpaid other fees payable by the Owners of the Unit except as follows:

NOTE: New unit owners will be charged a membership fee of $_____________

C. Rights of First Refusal. The Condominium Documents __________ (do or do not) create any rights of first refusal or other restraints on the free alienability (transferability) of the Unit.

D. Anticipated Capital Expenditures: The following, if any, is a list of all capital expenditures currently anticipated by the Association:

E. Reserve Fund: As of the date of this certificate, there is an outstanding

balance in the reserve for replacement fund (Reserve Fund) of approximately $_________. Of that balance, the following amounts, if any, have been designated by the Executive Board for the following specific projects:

F. Financial Statements: Attached to this certificate is a copy of the most recent regularly prepared balance sheet and income and expense statement, if any, of the Association dated. 19 .G. Budget: Attached to this certificate is a copy of the current operating budget of the Association as of. 19.

H. Lawsuits; Outstanding Judgments: There _________ (are or are not) unsatisfied judgments against the Association nor any pending suits in which the Association is a party except as follows:

I. Insurance: The Association holds hazard, property damage and liability insurance policies covering the Units and the Common Elements as required by the Declaration. It is suggested that each Unit Owner obtain insurance covering property damage to betterments and improvements installed in the Unit and personal property contained therein (not covered by the Association policy) as well as insurance covering personal liability. You are urged to consult with your insurance agent.

J. Violations of Condominium Documents: To the knowledge of the Executive Board, the improvements or alterations, if any, made to the Unit or the Limited Common Elements assigned thereto are not in violation of the Condominium Documents except as follows:

K. Violations of Health and Building Codes: To the knowledge of the Executive Board, there presently exist _________ (non or the following) violations of the applicable health or building codes with respect to the Unit, the Limited Common Elements assigned thereto, or any other portion of the Condominium except as follows:

L. Leaseholds: There _______ (is or is not) leasehold estate affecting the Condominium.

The information contained in this Certificate for Resale, issued pursuant to Section 1604-108 of the Maine Condominium Act, as amended, is based on the best knowledge and belief of the Association, and is current as of the date hereof.

The Association may charge such fee for the preparation of this Certificate for Resale as allowed by law.

Dated this day of ______, 1999

______________________________ Association

UNIT OWNER'S CERTIFICATE

In fulfillment of the requirements of Subsection (a) of Section 1604-108 of Title 33 of the Maine Revised Statutes and to induce you to purchase the above-described Unit of ________________________________Condominium, from the undersigned, we certify to the foregoing information.

Source: www.mainecondo.com

Category: Insurance

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