Major Changes to Condo & HOA Resale Packages Beginning October 1st

Posted By: Tommy Tompsett

Beginning October 1st, the maximum fee that a condominium association or home owners association (HOA) may charge a unit owner for providing a resale package will be $250. This figure may be CPI-U adjusted every 2 years, but as of October 1, 2016 the maximum fee will be $250.  Condominium associations and HOAs should note that the law change also allows for a $50 expedited fee for resale packages requested 14 days before closing and a $100 expedited fee for resale packages requested 7 days before closing. A $100 inspection fee if one is needed may also be charged by the condiminium association or HOA.

Finally, the contents of the actual resale package have also changed some in the hopes of streamlining the compilation and for making the contents of the packet useful to the buyer.  In addition to what you normal provide in a condominium or HOA resale package, below are the changes to the contents of that package (new language to the law is  bold and italics while obsolete language struck through):

  1. A statement setting forth the amount of the monthly common expense assessment and any unpaid common expense or special assessment currently adpoted by the council of unit owners that is due and payable from the selling unit owner;
  2. The current operating budget of the condominium including details concerning the reserve fund for repair and replacement and its intended use the current reserve study report or a summary of the report, a statement of the status and amount of any reserve or replacement fund, or a statement that there is no reserve fund;
  3. A statement as to whether the council of unit owners has knowledge that any alteration or improvement to the unit or to the limited common elements assigned to the unit violates any provision of the declaration, bylaws, or rules or regulations;
  4. A statement as to whether the council of unit owners has actual knowledge of any violation of the health or building codes with respect to the unit, the limited common elements assigned to the unit, or any other portion of the condominium; and
  5. A statement of the remaining term of any leasehold estate affecting the condominium and the provisions governing any extension or renewal thereof.