When a Rhode Island condo unit is resold, the seller has to give the buyer a resale certificate along with the declaration, bylaws and rules. The association supplies the certificate. The rules are in R.I. Gen. Laws § 34-36.1-4.09.
The deadline and the fee
- The association must provide the certificate within 10 days after the unit owner asks for it.
- It may charge no more than $125 to prepare it, paper or electronic.
- An association that misses the 10-day deadline after a written request faces a civil penalty of $100 to $500 per occurrence.
What the certificate must include
- Any right of first refusal or other restraint on selling the unit
- The monthly common expense assessment and any unpaid assessments owed by the seller
- Any other fees owners pay
- Anticipated capital expenditures for the current and next two fiscal years
- Current reserves, and any reserves set aside for specific projects
- The most recent balance sheet and income and expense statement
- The current operating budget
- Unsatisfied judgments against the association and lawsuits in which it is a defendant
- Insurance coverage provided for owners
- Whether the board knows of alterations to the unit that violate the declaration
- Whether the board knows of health or building code violations
- The remaining term of any leasehold affecting the condominium
What it means for buyers and sellers
The buyer isn't liable for unpaid assessments greater than the amount the certificate states. Until the certificate is delivered, and for five days after, the buyer can void the purchase contract, or until closing if that comes first. The seller isn't liable to the buyer for errors in information the association supplied.
Where boards get caught
Most of the certificate comes straight from records a well-run association already keeps: the budget, the latest financials, the reserve balance and the capital plan. Associations without current numbers scramble to meet the 10 days. Keeping monthly financials and the reserve plan up to date is what makes a resale certificate a quick job instead of an emergency.
Why the management team matters at resale
We're real estate brokers as well as condo managers, so we see resales from both sides. A certificate that arrives late or with the wrong numbers can stall a closing or let the buyer back out. A management team that keeps the records current, turns certificates around quickly, and answers questions from buyers, sellers and their agents keeps sales on schedule and protects what every owner's unit is worth.
This guide is general information, not legal advice. Your association's declaration and bylaws may add their own requirements, and the statute can change; the linked sections on the Rhode Island General Assembly's site are the current text.