Resale Package or Resale Disclosure Package

Per MN Statute (515B.4-107 RESALE OF UNITS), association management companies prepare these documents individually for each owner in the association within 10 days of request. Fees for these documents vary by association and you may have the option to pay a RUSH fee to get the documents faster.

So what is in this resale package and why is there a cost to obtain it?

It is a legal document that protects the buyer from purchasing into a community association without first obtaining “full disclosure”. It contains copies of the declaration (other than any CIC plat), the articles of incorporation and bylaws, any rules and regulations, and any amendments or supplemental declarations;
copies of the master declaration, articles of incorporation, bylaws, and rules and regulations, if the common interest community is subject to a master declaration;
and a resale disclosure certificate from the association dated not more than 90 days prior to the date of the purchase agreement or the date of conveyance, whichever is earlier, containing the information noted in the statute.
All of these questions are answered and are entered in real time by a staff member when the order is placed. The document is not static; it requires keen oversight as the questions are researched and completed.

Many homeowners think these governing docs are the same as when they bought their homes. The truth is that over a period of time the board, with an owner vote when required, makes amendments, resolutions and changes to the Rules and Regulations on a regular basis. It takes staff to keep up with all the changes and add, delete, and replace the documents as they receive the new ones. Document management requires staff to change the documents and then upload the new ones to keep their packages up to date.

MN requires the current budget and balance sheet are attached. This requires continually adding and replacing them each month. The budgets, audits, reserve studies, certificates of insurance, annual reports and all other documents require removal and replacement when the current ones expire. This all requires diligence and time to obtain the appropriate documents before an order is filled.

Once the preparer confirms they have all the correct documents in place, the “button is pushed” and the purchaser receives his or her packet via email or link to a website. Many management companies are using third party document services as a central point to order and upload documents to make it easier for homeowners to access what they want 24/7. There is a cost involved to the management company for these services. So, all in all, it is quite an involved process that takes a large amount of oversight and staff
to provide a legal document that complies with state statutes.

Each order is paid by the homeowner because It wouldn’t be fair for all owners to pay for resale certificates through their maintenance fees. Just as an association should not pay for real estate processing fees, etc. that pertain only to one home, so should it not be responsible for the preparation and issuance of resale packages for an individual owner.