Resale Certificates are required by law for planned communities like Wood's Edge under Pennsylvania Consolidated Statutes, Title 68. Real and Personal Property,
Part II. Real Property,
Subpart D: Planned Communities,
Chapter 54. Protection of Purchases,
Paragraph 5407. Resales of Units.
If you'd like to take a look at that law, click here.
The Resale Certificate includes:
Bylaws
Declaration of Covenants, Conditions & Restrictions;
Current Balance Sheet;
Current Budget;
Any unpaid dues assessments;
List of any exceptions, that is, any way in which the property is not in compliance with the Declaration of Covenants & Easements, such as having the wrong kind of fence or a tree too close to a property line.
Because it contains so many attachments, the Resale Certificate comes in the form of a book.
It is important for both buyer and seller to understand that by law, "the purchase contract is voidable by the buyer until the certificate has been provided and for five days thereafter or until conveyance, whichever first occurs."
The buyer should read the entire Resale Certificate with all attachments carefully. If the buyer finds the rules are too prohibitive or otherwise unacceptable, the buyer can void the contract within five days without losing their deposit.
As soon as you put your home on the market, contact the WEHOA Administrative Assistant by sending an email or calling 717-572-3353.
When you receive an Agreement of Sale, contact the WEHOA Administrative Assistant to request the Resale Certificate. The Seller has 15 days to contact the Association to order the Resale Packet and provide this to the Buyer. This is referenced on the Agreement of Sale.
By law, the seller must provide a resale certificate to the buyer. By law, a HOA has 10 days to prepare the resale certificate upon request of the seller, giving the association time to inspect the exterior property for “exceptions” and to prepare the document and attachments. Since a buyer has five days to look over these documents before committing to the sale, you can see why it is a good idea to request the resale certificate ASAP when you have a potential buyer.
Also enclosed in the packet is the invoice for the Resale Certificate in the amount of $100. This will be given to the settlement officer and paid to the Association from your (Seller) proceeds.
Just contact the Administrative Assistant to get an up-to-date printout of the Budget, Balance Sheet, Resale Certificate and cover letter.
If you purchased your home prior to January 2014, your initial reserve fee will be refunded to you. Advise your real estate agent to check with the Homeowners' Association Administrative Assistant. This amount will be entered as a credit to you on your HUD1 settlement sheet you will sign at your settlement. The Buyer will show a debit on the Buyer’s side of the HUD1 Settlement sheet for the current reserve fee.
Reserve fees paid by Buyers, who purchase Town Homes after January 1, 2014 will not be refunded.
[Please note that because of this change, buyers may request that you pay a portion of the non-refundable fee.]
When you settle on your property, if you have paid your dues in advance or settle during the middle of the month, your dues will be pro-rated and the Association Administrative Assistant will mail you a check for any refund you may be owed.
When you are ready to move, please leave your current coupon book at your residence or pass it to the Buyer at settlement so they may use up the remaining coupon payments.
Note:
If you are a new resident and have not received the coupon book from the seller - please call the Association Administrative Assistant and request a replacement book. 717-572-3353. New Coupon books are mailed to all residents during December.