Owner guide
What's in a condo resale certificate, and what should I look for?
The resale certificate is the most complete picture of a condo a buyer or seller ever sees in one place — and, in many states, it comes with a legal right to walk away after reading it. Knowing what's inside and what to scrutinize turns a stack of paper into a real decision.
The short answer
A resale certificate (or resale package) is the bundle of documents an association provides when a unit is sold — the financial statement, budget, reserve study, insurance summary, governing documents, and disclosures of assessments or litigation. It's the single best window into a building's health, and many states give buyers a short window to cancel after reviewing it.What the package contains
A resale certificate typically bundles the association's current financial statement and budget, the reserve study, the master insurance summary, the governing documents (declaration, bylaws, rules), the unit's dues and assessment status, and disclosures of pending special assessments, litigation, or known major repairs. It's effectively the building's diligence file, assembled by the association.
What to scrutinize
Four things drive most condo risk and they're all visible here: a pending or recent special assessment, a reserve study showing low percent funded, an insurance summary with non-renewal or a high deductible, and any disclosed litigation. Beyond those, check the percentage of owner-occupied vs. rented units and any delinquency figures — high rentals or delinquencies can affect both financing and the building's stability.
The cancellation window
Many states give a buyer a right to cancel the purchase within a set number of days after receiving the resale certificate — the exact length and rules vary widely by state. That window exists precisely so a buyer can review the package and back out if something material surfaces. For sellers, it means the documents need to be accurate and complete, because a problem found here can unwind the deal.
What to check
- Confirm the package includes the reserve study, budget, and insurance summary.
- Look for any pending or recent special assessment disclosure.
- Check the reserve study's percent funded.
- Read the insurance summary for non-renewal or a high deductible.
- Find any disclosed litigation involving the association.
- Note the owner-occupancy ratio and delinquency rate.
- Confirm your state's cancellation window and its deadline.
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