Quick Answer
A resale certificate is a package of association information a seller gives a buyer, usually with a payoff or demand statement showing dues owed. Requirements and fees vary by state. In California, Civil Code sections 4525 through 4530 govern transfer disclosures and fees. Michigan has no standardized resale package we could confirm, so title companies typically request an estoppel-style letter. Capital contributions come from the governing documents.
What Is an HOA Resale Certificate?
When a home or condo in an association is sold, the buyer and lender need to know what they are taking on: current assessments, unpaid balances, special assessments, rules, budgets and pending claims. The resale certificate (sometimes called a resale package, disclosure package or HOA questionnaire) collects that information. States that regulate it set the contents, deadlines and fee limits. Others leave it to practice and the governing documents. For a deeper look at the payoff piece, read our guide to HOA estoppel letters.
Resale Certificate, Estoppel and Demand Statement: Terms Compared
These words overlap, and usage differs by region and title company.
| Term | What it generally means |
|---|---|
| Resale certificate or package | Broad disclosure of governing documents, financials and community information for a buyer |
| Estoppel letter or certificate | Statement of the account balance and status as of a date, relied on by the buyer and lender |
| Demand or payoff statement | Itemized amount owed to the association that must be paid at closing |
| Capital contribution | Fee paid to the association by a new owner under the governing documents |
What California Requires
California addresses this in the Davis-Stirling Act. Civil Code section 4525 requires an owner to provide certain association documents to a prospective buyer as soon as practicable before transfer. Confirm the full list of required documents on the Legislature's website or with the association's attorney. Companion sections set out procedure and fees, and these were confirmed against code text.
- Section 4530 allows the association to charge a reasonable fee based on its actual cost of procuring, preparing, reproducing and delivering the documents.
- No additional fee may be charged for delivering the documents electronically instead of on paper.
- The association must act within 10 days of receiving the request, and delivery cannot be withheld or conditioned on anything except payment of the authorized fee.
- On request, the association must give a written or electronic fee estimate on the form described in section 4528 before processing.
- That form notes that it may not include every fee imposed before close of escrow, and unrelated fees must be billed separately.
Sellers who already hold current copies of the required documents may be able to provide them to a buyer directly. Ask your escrow officer how that works. Because these sections have been amended in the past, treat this summary as a starting point.
What Michigan Requires
Michigan's Condominium Act addresses the sale of units by a developer, including a buyer's withdrawal period after receiving required documents. We did not find a Michigan statute that sets a standardized resale certificate with a fee cap for resales between owners. In practice, buyers, lenders and title companies request an assessment and status letter, and associations or their managers charge for preparing it. If your documents authorize a fee, that fee generally comes from them. Because we could not confirm a statutory scheme, ask your attorney or title company what applies to your community.
Capital Contributions and Transfer Fees
Some communities charge a one-time capital contribution, working capital fee or initiation fee at closing, typically a flat amount or a multiple of monthly dues. These are creatures of the declaration or bylaws, not of a universal law, and some states restrict or regulate transfer-related fees. Boards cannot invent one without authority in the documents. Typical uses include building working cash or adding to reserves. Learn how those funds work in our reserve funds guide. Review governing documents to see if a contribution applies to you, and remember that an association's powers have limits, as described in what powers an HOA has.
Tips for Sellers, Buyers and Boards
- Sellers: request documents early, since timelines are short and closings can slip.
- Buyers: read the budget, reserve information, special assessments and litigation disclosures.
- Boards: adopt a written fee schedule consistent with documents and law, and respond within required timelines.
Understand what dues cover with what HOA fees cover.
Frequently Asked Questions
Who pays for the HOA resale certificate?
The seller commonly pays, and California legislative history describes the seller compensating the association, but purchase contracts can allocate it. Check your purchase agreement.
How long does the association have to deliver documents?
In California, the association must act within 10 days of a request under section 4530. Other states set different deadlines, and Michigan practice varies.
Is a payoff statement the same as an estoppel letter?
They are closely related. Both state what is owed, but an estoppel letter often includes broader account status. Terms vary by region.
Can an HOA charge a capital contribution when I buy?
Only if the governing documents authorize it and no law prohibits it. Review your declaration or ask the association.
What happens if the HOA misses the deadline?
Consequences depend on state law and the contract. Escrow may be delayed, so contact the manager and your agent immediately.
How APM Helps
APM manages community associations in Michigan and California and can help boards handle disclosure requests and closing paperwork consistently. See our association management services, review pricing, or request a free proposal.
This article is general information, not legal, tax or accounting advice. Laws and documents vary by community; ask your association's attorney or CPA about your situation. Last verified October 25, 2026.
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