I have a client selling a condo unit. Is there anything I need to know that makes a condo sale different from any other type of real estate sale?
Condo sales sometimes require sellers to provide buyer with additional items that are not customarily provided by sellers in a non-condo sale.
According to Louisiana Revised Statutes 9:1124.107,If the unit is being sold by someone other than the person who formed the condo regime, then before closing, the seller shall furnish to buyer:
- a copy of the declaration
- the articles of incorporation or documents creating the association
- the bylaws, and
- a certificate containing eight (8) specific items.
(8) items include:
- the amount of current common expense assessments;
- amount of capital expenditures for the current and next two fiscal years;
- amount of reserves to be used for capital expenditures;
- balance sheet and income and expense statement for the association;
- current operating budget of the association;
- status of pending Judgments and/or suits against the Association;
- insurance provided by the association; and
- any ground lease affecting the condo.
If the above info is not provided by seller to buyer, then the sales contract is voidable by the buyer.
Additionally, even if the above info is provided by seller to buyer, the buyer still has five (5) days after the info is provided (but prior to closing) to cancel the contract.
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