The HOA resale certificate: what it tells you and what to check

The resale certificate is the HOA's official snapshot of this specific unit. It's short, but it's the document most likely to tell you what you'll owe the day you close.

What it is

When a home in an association is sold, the HOA (or its management company) prepares a statement about that unit and the association. Depending on the state it's called a resale certificate, resale disclosure, estoppel certificate or estoppel letter, and it's usually delivered with the rest of the HOA documents. In many states the association is bound by what it states, so an amount it leaves off may be hard for it to collect from you later. That's why it's worth reading line by line.

What's usually on it

Regular dues for the unit, and how often they're due.
What the seller owes: unpaid dues, late fees, interest or fines.
Special assessments that are already approved, with amounts and due dates.
Transfer and closing fees charged by the HOA or the management company.
Known violations for the unit, like unapproved alterations.
Lawsuits the association is part of, in states that require it.
Insurance details for the master policy, sometimes with the deductible.
Contact details for the manager or board.

The lines to check

Approved assessments and who pays them. Your contract decides whether the seller or the buyer pays assessments that come due after closing. Make sure everyone reads it the same way.
Balances the seller owes. These should be paid at closing, not passed on to you.
Violations on the unit. If a past owner made changes without approval, the HOA may ask the new owner to undo them.
Fees. Transfer fees, capital contributions and "working capital" charges can add hundreds or thousands to closing costs.
The date. Certificates go stale. If closing slips, ask whether it needs updating.
Anything that conflicts with the other documents. If the minutes discuss a special assessment the certificate doesn't mention, ask the HOA directly.

What it won't tell you

The certificate reports what's been decided. It usually won't mention a roof replacement the board is still getting bids for, or a reserve fund that's running low. For those, read the meeting minutes and the reserve study.

This guide is general information, not legal advice. Rules on what the certificate must include, what it can cost and how binding it is vary by state; your agent or a real estate attorney can tell you how it works where you're buying.