Q: Marsha, I recently sold a condominium in Santa Barbara. We were able to close our sale, but I ran into a totally unexpected problem: the condo certificate. The way our Homeowners’ Association (HOA) management company filled out the condo certificate threatened to squelch the buyer’s loan. I thought the HOA management company worked for the owners. Why would they try to derail a sale?
A: There is a lot to your question. First, what is a condo certificate (or condo cert), who fills it out, and what is it for? Secondly, why would an HOA management company fill it out in such a way as to endanger an owner’s sale? Who does the HOA manager owe their loyalty to: their own company or the owners in the condo complex?
First, a condo certificate is a one-page document that declares what the current state of the condo complex is. The buyer is represented by a mortgage broker who researches and locates the best loan and lender for their buyer. The lender is the entity that wants to see the condo certificate.