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RESALE DOCUMENTS

Updated: Sep 13

Resale documents are a reality of all HOA and Condominium management companies. But do you know and understand the different documents and groups of documents that constitute resale documents? In this blog, we will go over six document categories and break them down to better understand each of them.

  1. Dynamic

  2. Static

  3. Updated

  4. Required

  5. Desired – by management

  6. Requested – by doc-buyer

Dynamic:

These are the documents that are updated for each order or request.

  • Resale Certificate

  • Escrow/Closing Statement

  • Lender Questionnaire

Every time one of these is ordered, it requires unique input, so each one is different. We have seen an evolution of these documents over the last few decades. Before 2001 these were either faxed or hand-delivered to the management company to complete by hand. In 2001 GetDocsNow.com sold the very first "On-line" resale documents. This allowed the management company to complete the "Dynamic" document by filling in the answers on their computer. Over time the"Form Fill PD" was invented and emailed to a management company for completion. Whether filling them out by hand, filling in a PDF, or using automation such as GetDocsNow, the only way to assure accuracy with Dynamic documents is with human input, every time.

Static:

These are the "set it and forget it" of resale documents; all documents included in various packages never change. Typically, these are going to be in PDF format. Here are a few examples:

  • CC&R's

  • Bylaws

  • Rules and Regulations

Most states require some type of Resale Package. This package will include, in addition to the Dynamic "resale certificate", some Static documents. Once you have these in your package, they don't need to change, making them "static". If you are not using GDN, do you have these in paper or electronic files for easy recovery and use?

Updated:

These are static documents that need to be updated from time to time. Here are the most common Updated documents:

  • Annual Budget

  • Insurance

  • Financials

  • Reserve study

The frequency of updating varies on how often the information changes. For example, the annual budget and insurance information only change once a year but on different days. The frequency for the financials is determined by how often the board meets, so this is different for each association. Reserve studies are typically good for three years. Can you see why it is so essential to understand and stay on top of these documents?

Required:

These are the documents that you are required to provide. As mentioned earlier, some states have certain documents that "must be provided"

  • What is NOT required: Lender Questionnaires. In short, there is no legal requirement or obligation for a management company to complete any lender questionnaires. The Truth About Lender Questionnaires is an in-depth article on this topic.

Are you confident you know the required documents in your state(s)? Check out How well do you know your state laws. If you send me an email requesting it, I will reply with the requirements for your state(s).

Desired:

These are the documents that are not required, but you want to include in the package. Some examples might be:

  • Pool Rules

  • New Member information

  • Gate control policy

We have seen a variety of documents that the management company wants to be included with certain dynamic documents, creating a package. You don't want to overwhelm the person receiving the document package, defeating the purpose of including them in the first place.

Requested:

These are the documents requested by the doc-buyer. Theses are either:


Not otherwise provided

OR Provided in a package other than the one ordered

  • If the requested document is not one of the "Required" documents, you have no obligation to the document requestor.

  • If the requested document is one of the "Required" documents provided in a different package, you have no obligation to provide it separately.

  • Creative ways to offer the documents that are most commonly requested.

Offer them in a package that the doc-buyer would buy anyway

Offer them as an add-on for a separate fee

Offer them individually, either free or for a fee.

Lenders most commonly make these requests. The most common requests are for their bank or lender-specific questionnaire to be completed. There are several reasons many attorneys suggest NOT completing bank or lender-specific forms. The Truth About Lender Questionnaires goes into detail on this issue if you would like to learn more.

Control, Automate, and Comply with GDN

With this blog post, you now know the different document categories and how they are used. You can now improve how you compile document packages and handle special requests that have been creating headaches for your business. The challenge now lies in creating and implementing standard operating procedures to cover the various possibilities. At GDN we take a unique approach and work with our clients and remove all of the guess work and unsurety out of this process. In doing so, we provide the proper documents at the right time for the right price. This keeps our clients on top of industry trends, minimizes employee time, and maximizes their profit.

Click here if you'd like to learn more about our document solutions.

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