Change in Resale Certificate Law

Whenever a condominium unit is sold in Washington State, a resale certificate must be prepared disclosing a long list of information which you will find in RCW 64.34.425.  The required facts include (but are not limited to) information regarding the amount of the monthly assessments, any upcoming special assessments, the association’s annual financial statement, and copies of the association’s governing documents.

Until this year, the maximum fee an association could charge for the preparation of a resale certificate was $150.  Due to a recently adopted change in the law, the maximum allowable fee for resale certificates will be going up to $275, effective in July 2011.

Please note that although the maximum allowable fee has increased to $275, that does not mean your association should automatically begin charging that amount.  All fees charged by condominium associations must be reasonable, and that standard remains in effect despite this change in the law.

How do you know if your resale certificate fee is reasonable?  The fee charged by your association should be reasonably related to the actual costs incurred by the association in preparing the resale certificate.  For self-managed associations where a Board member is preparing the resale certificate, the cost may differ from the cost incurred by an association that is not self-managed and which has the resale certificate prepared by a professional.

If you have any questions we can answer, please feel free to leave a comment or contact us directly.  We look forward to continuing this conversation with you in our future posts!

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8 Responses to Change in Resale Certificate Law
  1. Mary
    July 11, 2011 | 11:02 pm

    If the management company has addressed this increase and decided to increase their resale certificate fee, but this fee is still listed as $150 in the fee schedule of our management contract, can they still do so without amending the contract? In other words, does the state law override the contract?

  2. Kelvin Kleinman
    March 14, 2012 | 5:10 pm

    Did this price increase in fact go up July 2011?
    please let me know
    Kelvin at Quorum

  3. Valerie Farris Oman
    March 14, 2012 | 5:40 pm

    Mary, it depends on how the contract treats fee increases; unfortunately I can’t answer your question without reviewing the contract. The increase in the ALLOWABLE fee does not mean your management company is required to increase the fee. But the contract may allow for that.

    Kelvin, the allowable fee increase did go into effect in July 2011.

  4. Jacqueline Alexander
    June 13, 2012 | 3:58 pm

    My question concerns common area guest parking. Is it legal to allow one group (college students home for the summer) to park in common area guest spots for extended periods of time, i.e. all summer while requiring all other guests to abide by the two-week limit?

  5. Devon Smith
    August 12, 2012 | 10:49 pm

    From 27 section 3 – Delinquent Assessments Receivable has a total of $1,125. Who is responsible for paying that? Are they asking me to pay it or simply stating that the seller still owes that amount?

  6. Valerie Farris Oman
    August 13, 2012 | 2:43 pm

    Devon, we can’t answer that question as it would be giving you legal advice, plus it would require us to know a lot more about the facts of your situation. We recommend you consult with a real estate professional and/or a lawyer to help you determine who needs to pay what.

  7. E A Caesar
    April 14, 2017 | 3:27 pm

    How long is a condo resale certificate valid?

  8. Valerie Farris Oman
    April 18, 2017 | 12:11 am

    The statute doesn’t say they expire, per se, but does provide for the association to “charge a unit owner a nominal fee for updating a resale certificate within six months of the unit owner’s [original] request.” It’s a logical extension of that, then, that a resale certificate should be renewed/updated after 6 months from its original issue date. HOpe that helps!

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Change in Resale Certificate Law

Whenever a condominium unit is sold in Washington State, a resale certificate must be prepared disclosing a long list of information which you will find in RCW 64.34.425.  The required facts include (but are not limited to) information regarding the amount of the monthly assessments, any upcoming special assessments, the association’s annual financial statement, and copies of the association’s governing documents.

Until this year, the maximum fee an association could charge for the preparation of a resale certificate was $150.  Due to a recently adopted change in the law, the maximum allowable fee for resale certificates will be going up to $275, effective in July 2011.

Please note that although the maximum allowable fee has increased to $275, that does not mean your association should automatically begin charging that amount.  All fees charged by condominium associations must be reasonable, and that standard remains in effect despite this change in the law.

How do you know if your resale certificate fee is reasonable?  The fee charged by your association should be reasonably related to the actual costs incurred by the association in preparing the resale certificate.  For self-managed associations where a Board member is preparing the resale certificate, the cost may differ from the cost incurred by an association that is not self-managed and which has the resale certificate prepared by a professional.

If you have any questions we can answer, please feel free to leave a comment or contact us directly.  We look forward to continuing this conversation with you in our future posts!

Share and Enjoy:
  • Print
  • Digg
  • StumbleUpon
  • del.icio.us
  • Facebook
  • Yahoo! Buzz
  • Twitter
  • Google Bookmarks
8 Responses to Change in Resale Certificate Law
  1. Mary
    July 11, 2011 | 11:02 pm

    If the management company has addressed this increase and decided to increase their resale certificate fee, but this fee is still listed as $150 in the fee schedule of our management contract, can they still do so without amending the contract? In other words, does the state law override the contract?

  2. Kelvin Kleinman
    March 14, 2012 | 5:10 pm

    Did this price increase in fact go up July 2011?
    please let me know
    Kelvin at Quorum

  3. Valerie Farris Oman
    March 14, 2012 | 5:40 pm

    Mary, it depends on how the contract treats fee increases; unfortunately I can’t answer your question without reviewing the contract. The increase in the ALLOWABLE fee does not mean your management company is required to increase the fee. But the contract may allow for that.

    Kelvin, the allowable fee increase did go into effect in July 2011.

  4. Jacqueline Alexander
    June 13, 2012 | 3:58 pm

    My question concerns common area guest parking. Is it legal to allow one group (college students home for the summer) to park in common area guest spots for extended periods of time, i.e. all summer while requiring all other guests to abide by the two-week limit?

  5. Devon Smith
    August 12, 2012 | 10:49 pm

    From 27 section 3 – Delinquent Assessments Receivable has a total of $1,125. Who is responsible for paying that? Are they asking me to pay it or simply stating that the seller still owes that amount?

  6. Valerie Farris Oman
    August 13, 2012 | 2:43 pm

    Devon, we can’t answer that question as it would be giving you legal advice, plus it would require us to know a lot more about the facts of your situation. We recommend you consult with a real estate professional and/or a lawyer to help you determine who needs to pay what.

  7. E A Caesar
    April 14, 2017 | 3:27 pm

    How long is a condo resale certificate valid?

  8. Valerie Farris Oman
    April 18, 2017 | 12:11 am

    The statute doesn’t say they expire, per se, but does provide for the association to “charge a unit owner a nominal fee for updating a resale certificate within six months of the unit owner’s [original] request.” It’s a logical extension of that, then, that a resale certificate should be renewed/updated after 6 months from its original issue date. HOpe that helps!

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