NEPA SPEAKS OUT- RESALE CERTIFICATES…WHAT ARE THEY?

October 22, 2010  |   Posted by :   |   News,Pocono Real Estate,property management   |   Comments Off on NEPA SPEAKS OUT- RESALE CERTIFICATES…WHAT ARE THEY?»

Stroudsburg – At NEPA Management Associates, my Property Management company located at 304 Park Avenue in Stroudsburg, one of my core responsibilities is to process Resale Certificates for homes that the Pocono Realtors sell.  These are homes located in developments such as The Estates at Great Bear, The Woodlands, Pocono Hemlock, Villas at Pine Hill or Victoria Heights.  A Resale Certificate is a part of the Pennsylvania Agreement of Sale and I’m typically called after the property goes under contract and after the inspections are done, but well before the closing.

A  Resale Certificate is in essence a “snap shot” of a specific Community or Association.  The Pennsylvania Uniform Planned Community Act (#180) commenced into law on February 2, 1997.   Shortly thereafter the Pa. Uniform Condominium Act (#180 Subpart) commenced into law on July 2, 1980.  The Resale Certificate states the proper name of the Community or Association, and its location within the Pocono Mountains.  It will also state the name of the Seller, the Section, Lot # and Unit # if applicable to the subject property.

The listing of dues and/or assessments is also stated along with the time frame either being paid monthly, quarterly or yearly.  There is also a section listing special assessments (if any) that would apply to this particular Community or Association.  The Resale Certificate will also state what type of water and sewer are available—whether well and septic are provided by a municipality or private entity.  It will include a section listing what types of roads are present (public, private, paved, gravel) and whether there are road fees in existence.  When the property is sold it will state whether a transfer/conveyance fee is applicable to that specific property.

A Resale Certificate is customized by my office to the Community or Association listing the specific recorded By-laws, the Declarations, a map of the Community, the Rules & Regulations, an Insurance Declaration page and other pertinent information for the new Owner.  It is also made up of (17) seventeen specific items or points that is unique to each Community or Association.  Whether the property has a Right of First Refusal, the charges that may be associated with the property—common expense charges, unpaid assessments, charges, dues, credits and a total due upon closing.  It will also list whether the Community or Association will or will not be proposing Capital expenditures within a given time frame.  A numerical figure will be presented listing the amount of money held in a separate capital reserve account.  A current copy of the balance sheet and budget sheet will be provided for review.

Several items will address what the Board of Directors has knowledge of: alterations, improvements, lease hold interests, etc. A listing of lawsuits or judgments which the Community or Association may be a party to is also clearly spelled out along with docket numbers. Cumulative or class voting is covered and a listing of times shares if applicable.  Master Association and the original sub-divider are also allotted space if warranted.

A Resale Certificate is a vital part of a Real Estate transaction.  Again—it may just be a “snap shot” but it portrays a complete, vivid picture of a specific Community or Association.

Well, that’s what a Resale Certificate is all about.

In addition to the Resale Certificates being a part of my job at NEPA Management Associates, I also handle the Right of First Refusal for Penn Estates, Timber Hill, Paradise Pointe and Stillwater.  The Right of First Refusal is different than a Resale Certificate but it still is a responsibility that I handle.

If you live in a community and you are selling your home…I’m pretty sure we are going to meet!

Marilyn R. Lesoine, Administrative Assistant, is a senior associate with NEPA Management Associates located at 304 Park Avenue, Stroudsburg.  NEPA is one of the largest property management companies in Northeast Pennsylvania and is under the direction of Thomas R. Wilkins, CEO.  NEPA handles approximately 20 associations, which include Property Owners Associations, condominium complexes and town-home communities.  The office is open 7 days a week.  If you’d like more information, visit them at www.nepamgmt.com

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