QUERY: Our condo documents stipulate a $100 fee for a resale packet, our property manager is telling us CIOA “requires him to charge $125.”

FALSE: CIOA, Sec. 47 270 stipulates in part…………… “a fee established by the association that does not exceed one hundred twenty-five dollars:.    The fee established by the Association is $100.

QUERY: Our management company says that in addition to the $125, they can charge an extra $25 to copy our condo documents for Resale Packets.

FALSE: CIOA, Sec. 47 270. Resale of units clearly states if sending hard copies of condo documents, the charge is five cents per page.  For example: combining your declaration, rules, bylaw, a foreclosure policy and/or maintenance standards with a total of 91 pages, the cost would be 91 x $0.05 or $4.55. As a responsible board, you need to instruct management to provide a refund to the selling owners to make them whole.

QUERY:  A management company says that they do not always have to include copies of our documents in the Resale Certificate because they use the following language:

• Attachments, to the best of our knowledge, include all current amendments and accompany this certificate.

• There are no attachments. Documents have been provided by the seller

FALSE:  CIOA, Sec. 47 270 clearly states ” copies provided by the association pursuant to this section”. Copies of the documents must be complete and accurate.

QUERY: As president of our Board, someone told me I should review each resale certificate before it is issued by our management company.

FALSE: No one member of the board should have this responsibility.  Given the time limits outlined in Section 47-270 it would not be prudent since any delay in providing this material to the selling owner could place the board in a potential position of interfering with the contract for sale of the unit.  The Board should have an attorney review the resale certificate when contracting with a new management company.  Board can also request a copy of any completed certificate. 

General Advice

When contracting any management company, a board may wish to have legal counsel review the resale certificate for content. In addition, even though management may request all condo documents from your legal counsel, the board should review these documents to ensure all proper and current documents have been provided. 

If an association provides information in the resale certificate that it is not required to disclose under the Act, or provides incomplete documents and that information leads to a cancellation of the sale by the purchaser, the association could possibly be subject to a lawsuit. Therefore, it is very important that the association ensure management takes the utmost care in preparing its resale certificates. If a board is uncertain, check with legal counsel. (Note: there are several causes of action that a buyer or seller can use to sue the Association for the resale. Section 47-278 creates a cause of action for violation of the statute.  A buyer can sue for negligent or intentional misrepresentation.

Since the onus of the resale certificate falls to the association not management, litigation falls on the shoulders of the Association……….. and ultimately a cost to all unit owners.

The Statute

Sec. 47-270. Resales of units

(b) (1) Not later than ten business days after receipt of a request in a record from a unit owner and payment by the unit owner of a fee established by the association that does not exceed one hundred twenty-five dollars

• plus either five cents for each page of document copies provided by the association pursuant to this section or

• a flat fee of ten dollars for an electronic version of those documents, for the preparation of the certificate and other documents, the association shall furnish a certificate containing the information necessary to enable the unit owner to comply with this section and any other documents required by this section.

• An additional fee of not more than ten dollars for expedited preparation may be established if the certificate and all required documents are furnished to the unit owner not later than three business days after the request in a record is received by the association.

• No fee under this subsection may include costs for services provided by an attorney or paralegal.

If you have questions, legal counsel can provide information on Connecticut law.