Documents from the association
A resale package or certificate typically includes the governing documents, budget, financial statements, rules and insurance details. An estoppel or status letter states what the seller owes and what fees are due at transfer. Associations set their own timing and charges.
Lenders may review these items before approving the loan.
Lender riders
The mortgage may include a condominium rider or planned unit development rider, an additional document that recognizes the association's rights and the borrower's duties to pay dues. You sign it with the rest of the closing package, and it is usually attached to the mortgage.
A rider is part of the document it is attached to.
Fees to know about
Possible costs include a transfer or move-in fee, a capital contribution, prepaid dues and a document fee. Amounts and who pays depend on the association's rules and the contract. Check the Closing Disclosure and the estoppel letter for the figures rather than rely on memory.
Ask whether any special assessments are planned or pending.
What buyers should read
Look at the budget and reserves, pending lawsuits, rules on rentals and pets, and the insurance the association carries. These affect your costs and use of the property. Review them before the contract deadline when you can still negotiate or back out under its terms.
An attorney can interpret anything unclear.
At the signing table
The signing agent handles signatures and notarial acts but does not interpret association rules. If a page asks you to acknowledge receipt of association documents, confirm that you really received them. After closing, contact the management company to set up dues payments and register as the new owner. Keep copies of the rules and the budget for your records.
A timeline for buyers and sellers' duties
Once under contract, the buyer or agent requests the resale package from the association or its manager. Delivery can take days or longer. The lender and attorney review it. Any problem, such as unusual assessments, is dealt with before the contract period ends.
Closing relies on the estoppel letter being current, so it is ordered close to the closing date.
Sellers usually pay for or arrange the documents the association must provide, though local customs vary. They also settle outstanding dues and fees. Sellers should return keys, fobs and parking passes at closing and cancel any recurring dues payment set up with the association.
Insurance deserves special attention. The association usually insures the building, and you insure the inside of your unit and your belongings. Ask what the master policy covers, what the deductible is and who pays it after a loss. The lender will want to see proof of both layers, and gaps are common for new owners.
Also ask about the association's rules for renovations, short-term rentals, parking and pets. These can change how you plan to use the property. If rules look restrictive, bring them up before the inspection or review period ends, while you still have options under the contract.
Common questions
What is an estoppel letter?
A statement from the association about the status of the unit's dues and any amounts owed on a given date. It protects the buyer and lender.
Does the notary need the HOA papers?
No. The notary only notarizes signatures on the documents requiring it.
Who pays the transfer fee?
The contract and association rules decide. Check both.
This guide is general information, not legal advice. Fees and procedures change; check with the office involved or an attorney for your situation.