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.

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?

This is a bit of a gray area. There is no specific timeline specified in the statute or the purchase and sale agreement related to the start of the review period. The review period should not start until the complete, legal resale certificate is received.

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 review period automatically expires after 5 days. The only obligation is on the seller to provide and prove delivery.

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. 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 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.