Seattle Condo Authority • Jeff Reynolds • 20+ Years Experience
What sellers must tell you -- and what you should read very carefully.
Seattle Condo Authority • Buyer Education
Washington State law requires sellers of resale condos to provide buyers with a package of disclosure documents before closing. This package is governed by the Washington Condominium Act (RCW 64.34) and related statutes. Unlike single-family home sales, condo disclosures include not just the unit but the building and HOA -- which means buyers receive information about the collective financial health of the community they are joining.
The core of a condo disclosure package is the resale certificate, prepared by or on behalf of the HOA. The resale certificate must include: the current HOA budget, the amount of reserves, any pending or approved special assessments, any litigation involving the HOA, any known violations or pending actions against the unit, the current HOA fees, and any use restrictions that differ from the general rules in the CC&Rs.
The resale certificate is a legal document. Sellers and HOAs face liability for material omissions or false statements. However, the resale certificate only captures what the HOA has formally approved or documented -- discussion-stage repairs and informally proposed assessments may not appear. This is why HOA meeting minutes are equally important.
In addition to the resale certificate, sellers in Washington State must complete a Seller Disclosure Statement (Form 17) covering the unit itself. This covers the seller's personal knowledge of the unit's condition -- any known defects, water intrusion history, appliance issues, noise problems, parking disputes, and similar unit-level matters. Sellers who knowingly conceal material defects face legal liability.
For new construction condos in Seattle, the developer must provide a Public Offering Statement before any binding purchase contract is signed. This document describes the project, the developer's experience, the unit specifications, the HOA structure, initial budget, reserve fund projections, and any pending litigation involving the developer. Buyers of new construction have a right to rescind the contract within a specific window after receiving the Public Offering Statement.
Jeff Reynolds advises buyers to focus on four items in any disclosure package: the reserve fund balance and percent funded (is the HOA financially prepared for capital repairs?), pending or recently approved special assessments (any surprise charges ahead?), HOA meeting minutes from the past two years (what has been discussed that may not yet be formally disclosed?), and any pending litigation (what legal risk does the building carry?). These four areas reveal the most about a building's true financial and physical condition beyond what the unit itself shows on a walkthrough.
Washington State law gives buyers a right to rescind a purchase and sale agreement after receiving the resale certificate if they find the information unacceptable. The rescission window and process are defined in the purchase contract and Washington law. This is one of the most important buyer protections in a condo transaction, and Jeff Reynolds ensures it is properly preserved in every offer he writes.
Frequently Asked Questions
The resale certificate must include the current HOA budget, reserve fund balance, any pending or approved special assessments, any pending HOA litigation, current HOA fees, use restrictions applicable to the unit, and any known violations or HOA actions against the unit. It is prepared by or for the HOA and is a legally required disclosure in every resale condo transaction.
No. Washington State law requires sellers to disclose all material facts known to them that would affect a buyer's decision to purchase, including unit-level defects. Knowingly concealing material defects exposes sellers to legal liability after closing. However, sellers can only disclose what they know -- buyers should still conduct their own inspection to discover defects the seller may not be aware of.
The purchase and sale agreement specifies the review period for disclosure documents. Buyers typically have a defined number of business days after receiving the resale certificate to review and, if unsatisfied, rescind the contract. Jeff Reynolds structures purchase agreements to ensure adequate review time and uses that window to scrutinize HOA financials thoroughly.
HOA meeting minutes are not always formally required as part of the resale certificate package, but buyers have the right to request them and sellers are generally obligated to facilitate access. Jeff Reynolds always requests the past two years of HOA meeting minutes for every buyer, as minutes frequently reveal upcoming repairs, reserve concerns, and informal assessment discussions before any formal vote.
New construction condo developers must provide a Public Offering Statement before any binding contract is signed. This document covers project details, developer background, unit specifications, HOA structure, initial budget, reserve projections, and any pending litigation. Buyers have a rescission right after receiving this document. Jeff Reynolds advises buyers on what to look for in Public Offering Statements for Seattle new construction projects.
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