Understanding DC Condo Resale Packages

Staring at a thick condo “resale package” and not sure where to begin? You are not alone. The right documents can shape your monthly costs, your ability to renovate, and even your loan options. In this guide, you will learn what a DC resale package includes, how to scan it fast, what to flag, and how to use your short rescission window wisely. Let’s dive in.

DC condo resale packages explained

A resale package is the set of association documents and disclosures you receive when you buy a condo. It is prepared by the condominium association, its property manager, or a vendor they hire. In Washington, DC, the Condominium Act governs what must be disclosed and gives buyers limited protections tied to delivery of these items.

Turnaround times vary. Small or volunteer-run buildings may take longer, while professionally managed communities often deliver in a few business days to 1–2 weeks. Associations commonly charge a processing or estoppel fee.

If you are also considering Arlington, remember Virginia has its own Condominium Act and different procedures and timelines. The concepts are similar, but the rules and deadlines can differ.

What’s inside the package and why it matters

Governing documents

You will see the Declaration, Bylaws, Articles of Incorporation, and Rules and Regulations. These set unit boundaries, voting procedures, and the house rules for pets, parking, renovations, and rentals. They determine what approvals you need and how rules can change.

Financials and reserves

Expect the operating budget, recent financial statements, and any reserve study or reserve schedule. These show dues trends, cash on hand, and planned long-term projects. Underfunded reserves often lead to special assessments, especially in older buildings.

Assessments and arrears

Look for current monthly assessments, any special assessments, and the association’s collection policy. High delinquency or frequent special assessments can signal future costs or lender concerns.

Estoppel or resale certificate

The estoppel lists the exact amounts due, unpaid charges or fines, and the status of special assessments. Title companies and lenders rely on it for closing. It is a snapshot that can be binding on the association for a short time.

Insurance

You should receive the master policy declarations and certificate of insurance. Note coverage type, limits, and deductibles, and whether the building is “walls-in” or “bare walls.” Gaps or high deductibles can shift costs to owners.

Litigation and minutes

Packages often disclose pending lawsuits and include recent board meeting minutes. Litigation can lead to assessments. Minutes reveal upcoming projects, owner concerns, and enforcement trends.

Contracts and warranties

Review the management contract and major service agreements such as elevator, HVAC, or landscaping. Expiring or costly contracts can push dues higher.

Unit-specific items

Check for alteration approvals on file, outstanding violations, parking and storage rights, and access protocols. Unresolved issues can delay closing or require remediation.

Financing-related items

Some packages include information relevant to FHA or VA project approval or conventional underwriting. Lender eligibility can be affected by insurance, litigation, and owner-occupancy ratios.

Quick-scan checklist in 10–15 minutes

Start with a fast triage, then dig deeper as needed.

• Estoppel certificate: Confirm monthly dues, unpaid balances, and any declared special assessments. Note the effective date.
• Special assessments and projects: Search for “special assessment,” “roof,” “façade,” “elevator,” “waterproofing,” “windows,” and “plumbing stacks.”
• Reserves: Look for a reserve study and the reserve balance. Very low reserves can be a red flag.
• Insurance: Identify coverage type and the master policy deductible. Large deductibles increase owner exposure.
• Rules and approvals: Check pet, renovation, and rental rules, and whether the board can change rules by resolution.
• Minutes: Skim the last 6–12 months for votes on assessments, big contracts, or recurring complaints.
• Management: Note management company details and contract terms that could change costs.

Red flags to spot early

• Very small reserves for an older building or no reserve study.
• Recent or pending special assessments for major capital repairs.
• Litigation involving the building envelope, structure, or developer.
• High master policy deductible or “bare walls” coverage that shifts costs to owners.
• High owner delinquency rates mentioned in financials or minutes.
• Board instability, frequent special meetings, or officer turnover.
• Rules that block intended renovations or strict rental caps for investor plans.

Numbers to capture for easy comparison

• Monthly assessment amount and billing frequency.
• Reserve fund balance and the reserve study’s recommended funding.
• Any special assessment amounts and start dates.
• Owner-occupancy or rental percentages if disclosed.
• Master insurance deductible.

How to use the 3-day rescission window

In DC, your rescission right is tied to delivery of required resale disclosures. The window is commonly referenced as three business days. Always confirm exact timing and what counts as receipt in your contract and with your advisor.

Here is how to use that short period well:

1. Triage within 24 hours. Use the quick-scan checklist to find material issues such as special assessments, low reserves, litigation, and insurance gaps.
2. Prioritize key reviews. Ask your attorney or experienced agent to focus on the estoppel, budget, reserve study, insurance declarations, and litigation disclosures.
3. Request clarifications fast. If items are missing, ask for them immediately. If responses are unclear or delayed, consider your options.
4. Negotiate if fixable. If a risk is manageable, negotiate credits, escrow, or seller contributions to cover assessments during the window.
5. Rescind if needed. If the package reveals material liabilities or conflicts with your plans, submit written notice within the timeline stated in your contract.
6. Document everything. Keep copies and timestamps of deliveries and notices.

Georgetown and DC nuances to consider

• Older buildings: Georgetown has many historic and older conversions. Systems like roofs, façades, and plumbing stacks may be closer to replacement, which increases reserve needs.
• Historic approvals: Renovations may require both association approval and city or historic approvals. Build that into your plan if you expect to remodel.
• Flood considerations: Some parts of Georgetown fall within flood-prone areas. Confirm whether the master policy excludes flood and whether building systems and sewer backup are addressed.
• Pet policies: Many buildings maintain specific pet rules. Verify size, number, and approval requirements before you commit.

Arlington, VA differences at a glance

Arlington condos are governed by the Virginia Condominium Act, which uses different disclosure and estoppel procedures and timelines. Estoppel certificates are common, and response deadlines can be short. If you compare buildings across DC and Arlington, align your review to each jurisdiction’s process and confirm your rescission rights and timing.

Your next steps

• Ask for the resale package early and plan a same-day triage when it arrives.
• Capture the key numbers, then prioritize review of the estoppel, budget, reserves, insurance, litigation, and minutes.
• Align your renovation or pet plans with the Rules and Regulations.
• Use the rescission window to negotiate if needed, or to step away if the risk is not acceptable.

If you want a calm, thorough review and a plan you can trust, reach out to Hugh McDermott for expert, hands-on guidance tailored to Georgetown and prime DC condos.

FAQs

What is a DC condo resale package?

• It is the association’s bundle of governing documents and financial disclosures that explains rules, costs, risks, and obligations tied to the condo you are buying.

How does the 3-day rescission work in DC?

• Your right to cancel is tied to delivery of required disclosures, commonly referenced as three business days; confirm exact timing and receipt rules in your contract and with your advisor.

How do reserves affect me in older Georgetown buildings?

• Older buildings often face higher capital needs for items like roofs and façades, so thin reserves can signal a higher risk of special assessments.

What if a special assessment is disclosed after I go under contract?

• Review the purpose and amount, ask whether the seller will contribute or cover it, and if the risk is too high, consider using your rescission window to cancel within the deadline.

Can pet or renovation rules limit my plans?

• Yes, Rules and Regulations often require approvals for alterations and set pet restrictions; confirm procedures and limits before proceeding.

Why does the master policy deductible matter?

• A high deductible can shift more cost to owners after a loss; many owners carry HO-6 coverage to help with interior coverage and deductibles.

Do FHA or VA project approvals affect my loan?

• Yes, project approval status can impact eligibility for FHA or VA financing; if you need these programs, check the building’s status early in your process.