Selling a Condo or Townhouse

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If you are selling a condominium or townhouse, assembling paperwork in advance is critical. Not only will potential buyers want to review the documents, a number of documents will be required by the buyer's lender for financing approval.

While preparing your home for sale, take a few minutes and gather the needed Condo Documents. The expected Condo Documents include: 

1. Master Deed

2. Declaration of Trust

3. Bylaws and/or Rules & Regulations

4. Any amendments to the above documents

5. Latest Financial Report

6. Current Budget 

7. Last 2 months Condo Association Meeting Minutes

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You may have the Master Deed, Trust, and Rules from when you purchased the property and not looked at them since… Look for your stack of paperwork from when you purchased the home. Some property management companies or associations have the documents available to owners or available on their websites. 

NOTE: Some condo management companies charge for copies of documentation. So it might be good to search for the documents that you may already have. If you do not have any copies, ask a neighbor or member of the condo board.  

If you provide whatever condo documents you can to your real estate agent before listing your property, your agent can make these available to prospective buyers or their agents. Ideally these condo docs are available to buyer prior to their making an offer so the buyer can confirm the complex’s Rules and Regulations work for their situation.

Condo Questionnaire

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If the buyer for your property will be financing their purchase, their lender usually requires the condo management or association complete a Condominium Questionnaire.

The questionnaire is intended to let the lender know this is a sound investment. Some condo associations provide a standard questionnaire or Fact Sheet in advance that satisfies many lenders. The questionnaire or fact sheet answers a lot of common questions for the lender including the % of owner occupied units, if the complex complete or still being developed, or if there is any litigation or special assessments.

The lender will also ask for a copy of the Master Insurance Policy or Binder from the association to confirm the building is properly insured.

6D Certificate

In Massachusetts immediately before the transaction closes, the lender and closing attorney will request an original, notarized "6D Certificate" from whomever manages collecting condo fees. The 6D certificate states that all your condo fees (HOA or Special Assessments) are fully paid and up-to-date prior to sale. 

Costs and who pays?

Some management companies charge for both the Condo Questionnaire and the 6D Certificate. Some will charge for other condo documents. Most of the time documentation fees are paid by the seller. This is why is good to know the documents process with your condo management company or association before you list your property for sale.

If you have any questions about selling or buying your Massachusetts condominium property, get in touch! I am happy to be of assistance!