In the sale of a residential property, sellers need to inform buyers about the homeowner’s association. That is what a resale disclosure certificate is for.
How Important is a Resale Disclosure Certificate?
Under the Minnesota Statutes Chapter 515B, commonly known as the Minnesota Common Interest Ownership Act (MCIOA), the seller is required to provide to buyers a Resale Disclosure Certificate that discloses basic information about the association. This document aid buyers in making an informed decision about whether to buy that property. (Check Section 515B.4-107 for more information) Section 515B.1-102(b)(3) of MCIOA provides that Section 515B.4-107, applies to all planned communities and cooperatives.
Upon request, the HOA management company prepares these forms along with the necessary attachments. There is an upfront fee to prepare these documents.
As a seller, why do I have to pay for this document?
These forms require an admin to facilitate, an accountant to verify the payment and a licensed brokerage to operate under. Paperwork take our employees time. Management Companies may charge up to $250 for the resale disclosure information and HOA documents plus rush fees of up to $100. Our fees are lower, check them out HERE.
Why are these fees not disclosed in the association documents, association website or social media accounts?
It is not common practice for management companies to disclose their fees in association documents, association website or social media accounts.
Why is there no general form of this Resale Disclosure Statement that I can print off from my association website?
Dues Current Letters and Resale disclosures need to be done on a per property basis. Therefore it cannot be put up as a general form.
To check our list of fees, please click THIS.
Email requests for any necessary association related documents for escrow and title transfers to:
Or call our office at (763) 545-0064