FAQ
Condo Resale Certificates and HOA Review in Washington
A condo purchase includes the unit and a share of the association. The resale certificate is the key package for understanding the association's finances, rules, and risks.
The resale certificate
Under RCW 64.34 for older condominiums and RCW 64.90 under WUCIOA for newer communities, the seller provides a resale certificate with association financial and rule information.
The buyer generally has five days after receipt to cancel. Get it early and treat the deadline like any other material contingency.
What to read
Review the budget, reserve study, pending and recent special assessments, delinquencies, litigation, rental and pet rules, and the master-policy deductible. Underfunded reserves can predict future assessments.
Decide who pays any assessment at closing and include its real near-term cost in the transaction economics.
Financing can depend on the project
FHA and VA loans require project approval, and all lenders may review owner occupancy, litigation, and reserve funding. A weak association can affect a strong buyer's loan.
Sources: NWMLS Form 28; RCW 64.34; RCW 64.90. This is general information, not legal advice.
Next Steps for Buyers
Common Buyer Questions
What is a resale certificate when buying a Washington condo?
A statutorily required package from the association covering its budget, reserve study, assessments, delinquencies, litigation, rules, and insurance. Washington law generally gives the buyer the right to cancel within five days after receiving it.
What should a condo buyer look for in the reserve study?
Whether the association is funding realistically for major components like roofs, siding, and decks. Underfunded reserves are the leading predictor of future special assessments and can also complicate financing.
Can a special assessment affect my condo purchase?
Yes. Pending or recent special assessments should be identified in the resale certificate, negotiated as to who pays at closing, and weighed in the price, since they represent real near-term cost on top of regular dues.