Frequently Asked Questions

What is a Resale Certificate?

A “Resale Certificate” is a set of statements and documents a common interest community property seller is required to provide to a prospective buyer. State Laws dictate what information must be included and the delivery format can vary depending on if a third party is used to produce the information or if the Association is self-managed.

RCW 64.34.425 governs all condominiums formed prior to July 2018 unless they have opted in to RCW 64.90.

RCW 64.90.640 governs all common interest community properties formed after July 2018 and any who were formed before July 2018 who have opted in via an Amendment to their Declaration.

How long does a buyer have to review a Resale Certificate?

In Washington State the buyer has 5 days to review the resale certificate. The 5 day review period for a resale certificate cannot be waived, reduced, or adjusted.

When does the 5 day review period start?

The review period should not start until the complete, legal resale certificate is received. State statutes dictate when the review period begins.

RCW 64.34.425 does not stipulate the review period can specifically start before a contract is in place.

RCW 64.90.640 states the review period starts upon delivery of the resale certificate, regardless if there is a contract in place.

Does a buyer have to sign the Resale Certificate, or a ‘buyer’s receipt?’

No. According to state law the buyer has no obligation to sign anything related to the production, receipt, or validity of the resale certificate. The only obligation is on the seller to provide and prove delivery. The review period automatically expires after 5 days unless the buyer cancels their contract within the 5 day review period.

RCW 64.34.425 requires the unit owner/seller to sign the resale certificate.

RCW 64.90.640 does not require the unit owner/seller to sign the resale certificate.

How long is a Resale Certificate valid?

There is no statutory ‘expiration’ of a resale certificate. It must meet state law requirements at the time it is issued, but has no concrete relationship to the eventual purchase and sale agreement.

State law allows the unit owner/seller to request an update to their resale certificate within 6 months for a ‘nominal’ fee (RCW 64.34.425) or $100 (RCW 64.90.640).

That said, buyers appreciate and will likely ask for, the most recent information available. It makes sense to order an ‘update’ to the existing resale certificate once a contract is in place if more than 60 days have passed since it was issued.

Why should a buyer get a professional resale certificate review?

Buying a condo is essentially becoming a member of a business which has significant financial obligations. Understanding how the Association’s current and future financial and maintenance requirements will affect you during your term of ownership is a critical part of due diligence. Let the experts help you with this evaluation.