Resale Certificate....

Started by JamillahD • 3 replies • 2391 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

JamillahD (Texas)
Posts: 2

Posted:

It was my understanding that resale certificates are purchased by the buyer when there is a previous owner to insure that there are no back dues litigation etc owed to the management co. for title for a clear title. Therefore, do management companies ie.Tx. have the right to charge a fee for resale certificate for new developtment when there was no such document ordered, nor were the owners notified until closing that there would be a charge????

JosephW (Michigan)
Posts: 882

Posted:

You need to check with the Title Insurance company to see if they ordered it. Most title company's will automatically order it, sometimes without checking if the unit is new or used, simply because its on their check sheet. If they did, then your argument is with them. If no one, (title, mortgage, developer/seller) ordered it then you should question the management company about how they can charge for something that wasn't required for closing or ordered by anyone.

A side point however, developers are often supposed to pay assessments on units that are built but not sold. This may be the reason it was ordered by the title or mortgage company.

Joe

Joseph West
Official HOATalk.com Sponsor
Community Associations Network, LLC
www.CommunityAssociations.net
*See legal notice below (end of page) or go to www.hoatalk.com/legal

JamillahD (Texas)
Posts: 2

Posted:

It was not required at closing it just appeared on my closing documents. So, I contacted the management company via e-mail and they said that there is no law aganist charging for resale with new developments!

RogerB (Colorado)
Posts: 5,067

Posted:

Jamillah, if it was on your closing documents then you paid for it and that was a choice you made. If you wanted to challenge this charge it should have been done before closing to purchace the property from the seller. A certificate of status of assessment normally is required by a title company and there is usually a charge for it. The cost can be a negotiable item between the buyer and the seller.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here