Resale of Condominium Units

The Common Interest Ownership Act, which is comprised of Connecticut General Statutes Sections 47-200 to 47-295, provides the legal framework for the operation of common interest communities, as a practical matter, condominium associations. C.G.S Section 47-270 governs the resale of condominium units.

C.G.S. Section 47-270, Subsection (a) requires the owner of a condominium unit to provide to a unit buyer or the buyer’s attorney a number of items prior to sale, most significantly the following:

1. 1. A copy of the development’s declaration;
   2. A copy of the bylaws;
   3. A copy the association’s rules or regulations;
   4. A certificate containing various financial statements and disclosures, including but not limited to the existence of any right of first refusal or the like affecting the unit in question; the current operating budget of the association; and a statement of any unsatisfied judgments against the association and the existence of any pending suits or administrative proceedings in which the association is a party (Known as The Resale Certificate, the contents and legal and practical implications of the Resale Certificate were discussed in more detail in the Blog entry of April 26, 2019 by Attorney Kristie Leff of Bender, Anderson and Barba, P.C.)

47-270, Subsection (b)(1), requires an association to prepare and provide the required items on or before ten business days after receiving a request, at a maximum fee of one hundred twenty five, plus an additional per-page copy charge. Preparation and delivery of the certificate and required documents is a task generally accomplished by an association’s property management. It is incumbent upon property management to provide the required items in a reliable and prompt manner under the statutory scheme. 47-270, Subsection (b)(2), provides that a unit owner is not liable to the purchaser for any erroneous information provided by the association and reflected in the certificate and documents. Similarly, 47-270 (c), provides that a purchaser is not liable for any unpaid assessment or fee greater than the amount provided in the association’s certificate, nor is the unit owner liable to a purchaser for the failure or delay of the association to provide the certificate and documents in a timely manner.

Most significantly, a purchase contract is voidable by the purchaser until the expiration of five days, excluding Saturdays, Sundays and legal holidays, after the delivery of the certificate and documents to the purchase or purchaser’s attorney, or seven days, excluding Saturdays, Sundays and legal holidays, after the certificate and documents have been sent by registered or certified mail. (C.G.S. Section 47-270 (c)(1). It should be noted, however, that the purchaser can waive the timely delivery of the certificate and documents, as 47-270 (c)(2) provides that conveyance before the expiration of the above five or seven day time frames waives the required delivery of the certificate and documents.

C.G.S. Section 47-270 effectively provides a five to seven day due diligence period for a prospective purchaser of a condominium or co-op unit. Close review of this section and each of its subsections is warranted, and there are other provisions of Section 47-270 that are beyond the scope of this discussion. The undersigned strongly advises any prospective purchasers, or sellers,  to consult with our office before entering into a purchase contract for a condominium unit.