Important Info to Look for in a Resale Package

If you're purchasing a home or condo in a community governed by a homeowners association (HOA), you'll receive an important set of documents called a resale package (also known as a resale disclosure package or resale certificate). This comprehensive document provides crucial details about the HOA and your future community. At American Community Management, we want to help you understand what to look for so you can make an informed decision about your purchase.

What Is a Resale Package?A resale package is a collection of documents that sellers must provide to prospective buyers when selling a home in an HOA community. This package gives you insight into the financial health, rules, and operations of the association you're about to join. In many states, reviewing this package is legally required before finalizing your purchase.

Key Documents to Review
1. HOA Financial Statements: The association's financial documents are among the most essential items in your resale package. Look for:

• Current budget: This shows how the HOA allocates funds for maintenance, amenities, insurance, and reserves.
• Recent financial statements: Review at least the past two years to understand spending patterns.
• Reserve fund status: A healthy reserve fund (typically 70% or more funded) indicates the HOA is prepared for major repairs and replacements.

2. HOA Dues and Fee Information
Understanding your financial obligations is essential. The resale package should clearly state:

• Current monthly or annual HOA dues
• When fees are due and acceptable payment methods are available
• History of fee increases over the past few years
• Any upcoming or planned fee increases
• Special assessments (one-time fees for major projects)
• Transfer fees or move-in fees you'll need to pay

This information helps you budget accurately and avoid financial surprises after moving in.

3. CC&Rs (Covenants, Conditions, and Restrictions)
The CC&Rs are the governing documents that outline the rules and restrictions for your community. Pay close attention to regulations regarding:

• Architectural modifications and exterior changes
• Landscaping requirements
• Pet policies (breed restrictions, size limits, number allowed)
• Parking rules and restrictions
• Rental restrictions if you plan to lease your property
• Noise ordinances and quiet hours
• Holiday decoration guidelines

Make sure you can live comfortably within these guidelines before committing to the purchase.

4. Bylaws and Rules & Regulations
While CC&Rs provide the framework, bylaws and rules offer specific operational details:

• How the board of directors is elected
• Voting rights and procedures
• Meeting schedules and member participation requirements
• Enforcement procedures and fine structures
• Dispute resolution processes

Understanding these governance details helps you know what to expect from HOA leadership and how you can participate in community decisions.

5. Insurance Information
Your resale package should include details about the HOA's master insurance policy, including:

• Coverage types and amounts
• What the master policy covers versus what you need to insure individually
• Deductible amounts
• Expiration dates and renewal status
• Any gaps in coverage

This information is crucial for determining what additional insurance you'll need to purchase.

6. Maintenance and Repair Responsibilities
Clearly understanding maintenance responsibilities prevents future disputes. Review:

• What the HOA maintains (common areas, roofs, exteriors, etc.)
• What individual homeowners are responsible for
• Standards for property upkeep
• Timelines for HOA-managed repairs

7. Special Assessments and Pending Projects
Special assessments are additional fees charged to cover major expenses not covered by regular dues. Look for:

• Current or recently completed special assessments
• Planned major projects that might require future assessments
• The condition of community infrastructure and amenities
• Deferred maintenance issues

Making an Informed Decision
The resale package is your window into your potential new community. A thorough review helps you understand what you're signing up for and whether the community aligns with your lifestyle and financial situation.

At American Community Management, we're committed to transparency and helping homeowners understand their communities. A well-managed HOA with clear documentation, healthy finances, and reasonable rules can enhance your property value and quality of life.

Taking the time to carefully review your resale package is one of the most essential steps in your home-buying journey.
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For more information about the value ACM can add to your HOA, click here.