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What is an HOA Resale Package and Do You Need It for Closing?

HOA Documents, Title & Escrow,
Published: Jan 17, 2023
Updated on: Jul 16, 2024
  by Editorial team

To close a real estate transaction, you would usually need a resale package of documents, that is varied per state. A standard HOA resale package has two parts: a resale certificate and a collection of governing documents, like CC&Rs, Bylaws, Budget, Balance Sheet, and Reserve Study.

Resale Certificate (Estoppel) 

The resale certificate provides specific information about the home in the transaction and its standing in the community association. It includes any past-due payments to the association, pending violations, unpaid violations, unpaid special assessments, and fees that are due upon closing.

The Resale Certificate has different names depending on the state. Here is a breakdown of the naming variations in some of our favorite states:

  • HOA Demand
  • Demand Letter
  • Payoff Statement
  • Resale Demand
  • Escrow Demand 
  • Statement of Account
  • Closing Letter
  • Status Letter
  • Trustee Letter

And then there are several supporting documents that are usually required as a part of the resale package, like CC&Rs and bylaws. Let’s have a closer look.

CC&Rs: Covenants, Conditions, And Restrictions

CC&Rs are legal document that lists all rules, restrictions, responsibilities, and guidelines for the residents and the properties under an HOA. These are legally binding documents that define what is allowed and prohibited for the homeowner or borrower. 

CC&Rs can impose leasing restrictions, like a minimum lease duration of 12 months. This could make the property a bad investment decision if the goal is to turn it into a short-term rental. If the person living on the property violates the CC&Rs, they can face serious penalties from the association, which is why you need to make sure to have it in your resale package.

Although CC&Rs vary widely depending on the property and the association managing it, there are some common restrictions and requirements that we often see in our work. Below are some of them.

Property maintenance

The CC&Rs might require you to mow your lawn regularly. Or the CC&Rs might state that you can’t allow the home’s exterior paint to peel. Some HOAs provide lawn care and home 

maintenance services, like exterior painting. Other HOAs expect homeowners to take care of these duties themselves.

Home Decorations

CC&Rs could limit the creative flow of house decorations, either permanently or temporarily. Or they could determine the color of the curtains and front door, for example.


Some CC&Rs prohibit specific pets, like livestock or certain dog breeds, or limit the number of pets a property can have.


CC&Rs sometimes prohibit vehicle parking in specific areas and limit overnight guest parking.

Garbage/Unsightly Items 

The CC&Rs might require trash containers, utility meters, and clotheslines to be enclosed or appropriately hidden from the viewer’s eye.

Although these sound pretty normal, there are some of the less standard requirements an HOA might have. The CC&Rs could restrict the height of fences, prohibit political signs, or prevent the owners from decorating their parking spots.


HOA bylaws are rules created by an association that outlines how the community and association should operate. Once formed, the HOA typically adopts a set of bylaws. These describe how the association is run, set out voting rights and procedures, and contain rules for things like how often meetings must be held. The bylaws might also describe the association’s rights and responsibilities. 

You need bylaws in the resale package to have a clear understanding of the powers of the HOA board of directors, the rules for meetings, and membership requirements. Bylaws also dictate how the operations of the board of directors affect residents and how the communication between the board and residents should happen.

Financial/Budget/Reserve study

These documents state the financial position of the HOA – in short, the income and expenditure of the abovementioned HOA. Specific details must be included on an HOA financial statement depending on community bylaws and state regulations; however, the following are items that should be on a financial statement regardless of community association location or size:

  • Balance sheet — Showing the HOA’s assets, liabilities, and equity
  • Bank statements — Detailing deposits and debits that have cleared the bank
  • Reserve fund balances — Money set aside to cover expenses on future projects or unforeseen shortfalls
  • Statement of income — Detailed accounting of money coming into the HOA through assessments, dues, fines, and fees

Why is a reserve study so important for the resale package? It is a thorough analysis of the financial state of an HOA, which includes both financial and physical analyses of the property. The goal of the reserve study is to analyze whether the HOA has sufficient funds when those anticipated major common area expenditures occur.

Simply put, an HOA reserve fund is the amount of money an HOA has for bigger repairs, like roofing, pipe maintenance, etc. In an ideal situation, a reserve fund would be able to cover 100% of the future repairs. This scenario is not very realistic, so a reserve fund of 70% is considered a solid foundation for calm and happy living in an HOA-managed apartment. 

Insurance Documents

In the resale package, this document refers to the insurance coverage for the HOA and the property. 

HOA insurance covers:

  • Building exteriors that belong to the association.
  • Shared space and property that belongs to the association.
  • Liability for incidents that happen in shared space.

HOAs can require homeowners to get additional insurance depending on the circumstances, like having a gym in the building that allows external visitors. So same as home insurance protects the inside of a home, HOA insurance protects the outside, (and common areas).

Not all of these documents are required all the time in all states. If you want to be sure what should be in the resale package for closing in your state and don’t want to deal with acquiring these documents, ask us to do it for you.

What is an HOA resale package?

An HOA resale package is a set of documents required for closing a real estate transaction in a community governed by a Homeowners Association (HOA). It typically includes a resale certificate and governing documents like Covenants, Conditions, and Restrictions (CC&Rs), bylaws, financial statements, and insurance documents. These documents provide crucial information about the property’s status, financial obligations, and rules within the HOA.

What information is included in the resale certificate?

The resale certificate, also known as an estoppel, contains specific details about the property’s standing within the HOA. This includes any past-due payments, pending violations, unpaid special assessments, and fees due upon closing. It ensures the buyer is fully informed about any financial obligations or issues related to the property before finalizing the purchase.

Why are CC&Rs important in the resale package?

Covenants, Conditions, and Restrictions (CC&Rs) outline the rules, restrictions, and responsibilities for residents within an HOA. These legal documents specify what is allowed and prohibited, such as property maintenance standards, decoration guidelines, pet restrictions, parking rules, and more. Understanding the CC&Rs is crucial for buyers to ensure they can comply with community rules and avoid penalties.

What do HOA bylaws cover, and why are they needed?

HOA bylaws are rules established by the association to govern its operations. They detail how the community and the HOA should function, including voting rights, meeting procedures, and board responsibilities. Bylaws are essential in the resale package as they provide insight into the governance structure, decision-making processes, and the HOA’s role in managing the community.

What financial documents are included in the resale package?

The financial documents in the resale package typically include the HOA’s balance sheet, bank statements, reserve fund balances, and a statement of income. These documents provide a snapshot of the HOA’s financial health, detailing assets, liabilities, income from dues and fees, and the adequacy of reserve funds for future repairs and projects.

Why is the reserve study important for buyers?

A reserve study is a comprehensive analysis of the HOA’s financial preparedness for future expenses. It assesses both the financial and physical condition of the property, ensuring there are sufficient funds for major repairs and maintenance. A well-funded reserve ensures the HOA can handle large projects without imposing sudden, hefty fees on homeowners, providing buyers with financial peace of mind.

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