Start With the Governing Documents
Gather the declaration, bylaws, rules, recent budget, current dues, meeting notices, insurance information, and any sale or transfer forms. Ask for the owner's account balance and written instructions for ordering a resale package or questionnaire.
Do not rely on an old packet. Fees, assessments, insurance, and rules can change.
Dues, Liens, and Transfer Charges
Unpaid dues or assessments may need to be paid or resolved before clear title can pass. The closing company should identify recorded liens and request an association statement when appropriate.
Ask who pays transfer, disclosure, questionnaire, document, move-in, move-out, and working-capital charges under the documents and purchase contract. A charge should appear clearly in the seller's closing figures before signing.
Special Assessments and Major Repairs
Find out whether the board has approved or discussed a special assessment, loan, insurance change, large repair, or major maintenance project. Buyers and lenders may ask about both current assessments and likely future work.
Do not describe an assessment as “nothing to worry about” simply because the seller has paid it. The project condition can still matter to the buyer and lender.
Why Condo Sales Need More Review
A condo buyer is purchasing a unit plus an interest in the shared project. Lenders may review project insurance, budgets, owner delinquencies, litigation, structural condition, reserves, special assessments, and other facts.
Fannie Mae explains that lenders must determine whether a condo project meets applicable eligibility requirements. Its project questionnaire asks about assessments, loans, repairs, and other association facts. A good buyer can still face a loan problem if the project does not meet the chosen lender's rules.
Rules That Can Affect the Buyer
Depending on the documents, buyers may ask about rental limits, pets, parking, age restrictions, architectural controls, business use, leasing approval, and move procedures. Provide the rules without promising how the association will interpret them.
A Seller's Early Checklist
- Confirm the exact association name and contact.
- Request the current account balance.
- Order required resale documents early.
- Ask about assessments, repairs, litigation, and insurance changes.
- Give the buyer and lender complete records promptly.
- Send fees and liens to the closing company.
- Review the seller's final statement before closing.
If an association lien is one of several ownership problems, our guide to selling with title problems explains why title work should start early.
The Bottom Line
Association paperwork is not a last-week task. Current balances, rules, project facts, and buyer financing should be reviewed early enough to solve problems before they threaten closing.
If you’re weighing a direct sale, you can learn more about Paranova Property Buyers.
