(17) A statement of whether the declarant retains the special declarant right to cause a merger or consolidation of the condominium and, if so, the information describing such right which was supplied by the declarant pursuant to section 3205(13) (relating to contents of declaration; all condominiums), if any.


The above must be provided under a tight time limit. The association must provide this information to the seller within ten days after a request is made. Managing agents and board members have a significant liability for any mistakes made. A purchaser is not responsible for any unpaid assessment or fee greater than the amount set forth in the resale certificate. Therefore, a mistake can be very costly. A buyer relies on this work product. For example, the buyer may be able to keep any architectural violation not


disclosed in the resale certification. A transfer fee or unpaid assessment cannot be collected later if it is not disclosed in the certification now.


Of greatest importance to the real estate agent is that the sale can be voided for any reason (or for no reason at all) until five (5) days after the buyer receives the completed resale certificate and governing documents. Thus, I am puzzled any time an agent or association says we have to wait until the week of settlement to present this information to the buyer.


One additional complaint from property managers and association boards: “No one told the buyer they were joining an association and they were not given the paperwork.” State legislators say they hear this often, although I can’t believe it happens even 10% of the time. My solution is to require a receipt for each resale certificate signed and dated by the buyer. This is good for the seller (it sets the


timetable for cancelation), for the property manager, the association and the selling agent. If you do not require signed and dated receipts, I recommend you institute this practice now.


Most CAI members understand the importance of resale certificates. Now it is time to educate our Realtor® colleagues about what is entailed in generating these forms. Likewise, property managers and board members need to understand that real estate agents have to comply with their own regulations, laws and sales timetables. Both groups want to provide complete and accurate information so buyers can make an informed decision about living in the community.


Finally, there is pending legislation aimed at making every property manager’s job more difficult regarding home sales in their


(Connued on page 34)


www.cai-padelval.org 33


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