Resale of Units in Planned Communities
Posted on 28. Apr, 2010 by briankoeberle in Real Estate
Many homeowners in Pennsylvania today are living in either planned communities or condominiums subject to either the Uniform Planned Community Act (“UPCA”) or Uniform Condominium Act (“UCA”). Prior to selling their home, such homeowners are required to furnish to the purchaser, prior to execution of a sales agreement, a copy of the declaration, the bylaws and rules and regulations of the association, and a certificate or resale. A certificate of resale in a planned community must contain numerous statements, such as in part:
- A statement disclosing any “right of first refusal” on the property.
- A statement pertaining to assessments for common expenses, including any unpaid common expenses and/or any special assessments due.
- A statement of any other fees payable by homeowners.
- A statement of any capital expenditures proposed by the association for the current and two next fiscal years.
- A statement of the amount of any reserves for capital expenditures and of any portions of those reserves designated by the association for any specified project.
- The association must also provide the current operating budget of the association, along with the most recent, regularly prepared balance sheet and income and expense statement.
The association has ten days after a request by a homeowner to furnish the certificate and copies of all documents necessary to enable the homeowner to comply with the law. A homeowner providing a certificate to a purchaser is not liable to the purchaser for any erroneous information provided by the association and included in the certificate. However, the purchase contract is voidable by the purchaser until the certificate has been provided and for five days thereafter or until conveyance, whichever occurs first.
Many homeowners associations are unprepared to comply with this request. However, as a seller do not let your association off the hook, and be adamant that they provide you with the resale certificate and copies of all relevant documents within the ten-day deadline. And potential buyers of property in a planned community, be leery of signing a sales agreement prior to receiving the certificate and supporting documentation from the seller. Remember, an educated and informed buyer is a smart buyer!
