Thinking about buying a condo in Seattle and heard you’ll get a “resale certificate”? This packet can make or break your decision. It tells you how the building is run, where the money stands, and what rules will shape daily life in your new home. In this guide, you’ll see what is typically included in Washington, how timelines and fees work, and how to spot red flags common in Seattle buildings. Let’s dive in.
What a resale certificate is
A resale certificate is a summary prepared by the condo association or its manager for a specific unit. It exists under Washington’s Condominium Act (RCW 64.34) and helps you confirm the building’s finances, rules, insurance, and any issues that could affect your purchase. Lenders and title companies also rely on it to clear financing and closing.
What Seattle buyers receive
The layout varies by building, but you can expect these items to appear in the certificate or attachments.
Unit and owner information
- Unit address and parking or storage assignments
- Current owner name and whether the unit is owner-occupied
- Any unpaid assessments, fines, or fees tied to the unit
Assessments and fees
- Current monthly or quarterly dues and what they cover
- Any approved or active special assessments, amounts, and timelines
- Status of what is owed on the unit and any lien notices
Budget and financials
- Current operating budget and year-to-date results
- Most recent balance sheet and income and expense statements
- Reserve fund balance or summary and delinquency info
Reserves and capital projects
- Recent reserve study or summary if available
- Planned or ongoing major repairs like roof, elevator, or façade work
- Notes on whether reserves are tracking with upcoming projects
Insurance
- Master policy type, coverage limits, and deductibles
- What the master policy does not cover inside a unit
- Guidance that owners typically carry an HO-6 policy
Governing documents and rules
- Declaration/CC&Rs, Bylaws, Articles of Incorporation
- Rules and regulations like pet, rental, parking, and noise policies
- Any recent amendments or pending votes
Meeting minutes
- Board or owner meeting minutes, often the last 12 months
- Notices of upcoming meetings or ballots
- Recent decisions on assessments or rule changes
Litigation and claims
- Any pending or recent lawsuits or insurance claims
- Information on potential financial exposure, if disclosed
Management and administration
- Property manager or management company contact
- Board or escrow contact for association matters
- Procedures for transfers and estoppel requests
Financing and eligibility
- Project eligibility for FHA, VA, or other program approvals
- Any rental caps or leasing rules that could affect financing or resale
Timelines, fees, and who pays
Understanding timing and cost helps you plan and protect your contingency.
Typical turnaround
- Associations often deliver a packet within a few business days to two weeks.
- Expedited service is common for an extra fee.
- Request the packet as soon as you are under contract or earlier if allowed.
Common fees
- Associations or managers charge a preparation fee, often in the low hundreds.
- Complex buildings or rush requests may cost more.
- Washington law allows reasonable charges under the Condominium Act.
Who requests and pays
- Sellers or their agents typically request and pay, but contracts can assign this differently.
- Lenders, buyers, or escrow may also request copies for review.
How to review for HOA health
Use the resale certificate like a due diligence toolkit. The goal is to spot stability, not perfection.
Financial health checklist
- Compare the operating budget to actuals for deficits or chronic overages.
- Confirm the reserve balance and whether a recent reserve study exists.
- Check for special assessments and why they were needed.
Red flags:
- Frequent or large special assessments
- Reserves that look small against upcoming projects
- High owner delinquency rates
Litigation risk checklist
- Look for construction-defect suits, water intrusion claims, or coverage disputes.
- Read minutes for legal updates and funding plans.
Red flags:
- Active defect litigation without a clear funding strategy
- Multiple recent insurance claims
- Large legal reserves or risk disclosures
Building condition checklist
- Review notes on roof, envelope, elevator, mechanical, and façade work.
- Check whether big projects require owner votes or loans.
Seattle focus: building envelope and water intrusion, balcony or glazing repairs, elevator modernization, and possible seismic or soft-story needs.
Red flags:
- Unfunded major projects with no plan
- Repeated repairs to the same system
Insurance and disaster risk
- Confirm master property and liability coverage and deductibles.
- Check whether the association carries earthquake coverage or has a plan for seismic risk.
Red flags:
- Very high deductibles without a plan to cover them
- No earthquake coverage in a seismically active region
Rules and use restrictions
- Review pet, rental, alteration, and noise rules.
- For investors, confirm rental caps, waiting lists, and owner-occupancy percentages.
Red flags:
- Rules that conflict with how you plan to use the unit
- Many fines or enforcement actions noted in minutes
Governance and transparency
- Check minutes for board turnover, disputes, or special meetings.
- Look for clear records and regular owner communication.
Red flags:
- Frequent leadership changes and unresolved conflicts
- Poor recordkeeping or limited financial detail
Key questions to ask
- Are special assessments planned in the next 12 to 24 months?
- What is the current reserve balance and date of the last reserve study?
- Is the project eligible for FHA or VA loans?
- Is there any pending litigation and how will it be funded?
- Are there rules that affect your plans, such as pets or renting?
- Who handles repairs inside units versus common elements?
When to call specialists
- Low reserves or big projects: consult a structural or building envelope engineer.
- Litigation or complex issues: consult a condo-savvy real estate attorney.
- Financing questions: coordinate early with your lender.
Seattle-specific red flags
Seattle’s climate, building styles, and market patterns create some common themes.
Building types to watch
- Older wood-frame low-rise buildings may need envelope, balcony, or seismic upgrades.
- Mid-century and newer high-rise towers may face façade, glazing, or elevator projects.
- Mixed-use buildings near transit can have shared systems or commercial impacts.
Water intrusion and envelopes
- Seattle’s rain puts pressure on siding, roofs, and windows.
- Repeated moisture claims or repairs point to bigger envelope issues.
Seismic risk and retrofits
- Earthquake exposure is part of the region’s reality.
- Some associations plan or study seismic upgrades. Confirm any funding approach.
Financing constraints and resale
- High rental ratios, weak documentation, or active litigation can limit FHA or VA loans.
- Limited loan options can affect both your financing and future resale.
Smart process for buyers
A simple process protects your timeline and your deposit.
Steps during escrow
- Request the resale certificate early and confirm the delivery date and fee.
- Ask for the last reserve study, 12 months of minutes, and the insurance declarations page if not included.
- Review with your agent and lender, noting any lender-required items.
- If you find material issues, use your contract’s review contingency to negotiate or, if needed, cancel within deadlines.
Buying a condo is not just about the unit. It is also about the community, budget, and plans for the building you are joining. With a careful review of the resale certificate, you can avoid surprises and buy with confidence.
If you want an experienced set of eyes on your resale packet or need help weighing two buildings, we are here to help. Connect with The Corwin Group to Schedule a Consultation.
FAQs
What is a condo resale certificate in Washington?
- It is a packet prepared by the condo association that summarizes finances, rules, insurance, litigation, and unit-specific balances so buyers and lenders can evaluate risk.
How long do Seattle resale certificates take to arrive?
- Typical turnaround is a few business days to two weeks, with expedited service available for an extra fee in many buildings.
Who usually pays for the resale certificate in Seattle?
- The seller or seller’s agent commonly pays the preparation fee, though the purchase contract can assign the cost differently.
What are the biggest red flags for Seattle condos?
- Low reserves against large upcoming projects, active construction-defect litigation, repeated water intrusion claims, very high insurance deductibles, and restrictive rental rules.
Can I cancel if the resale certificate shows problems?
- Most Seattle-area contracts include an HOA or resale review contingency that can allow you to negotiate or terminate within set deadlines if material issues appear.
What should I ask about reserves and projects?
- Ask for the reserve balance, date of the last reserve study, upcoming projects in the next 12 to 24 months, and how the association plans to fund them.
Does earthquake insurance matter for Seattle condos?
- Yes. Earthquake risk is part of the region, so confirm whether the association carries coverage and how deductibles would be handled if a claim occurs.
