You found a condo you love, but the health of the building can make or break your purchase. In Downtown Seattle, a resale certificate holds the details that lenders, buyers, and sellers rely on to move forward with confidence. You want a clear picture of dues, rules, big-ticket repairs, and any risks before you commit. This guide shows you how to read a resale certificate step by step and spot the items that matter most in Seattle’s urban condo market. Let’s dive in.

What a resale certificate is

A resale certificate is a packet from the condo association or its manager that summarizes the unit’s legal, financial, and operational status. It typically includes governing documents, budgets, insurance information, minutes, assessments, and any legal matters that could affect ownership. Buyers use it to confirm what they are taking on, and lenders use it to approve financing. Sellers provide it so the deal can close smoothly.

Why it matters in Downtown Seattle

Many downtown buildings are high-rise or mixed-use, with complex systems and shared reserves. Big projects like façade repairs or mechanical upgrades can lead to special assessments. Lenders often require a current certificate to underwrite a loan, and issues in the packet can delay closing. Reading it carefully helps you avoid surprises and plan your budget.

How to read it step by step

Verify identity and basics

Confirm the association’s legal name, manager contact, your unit number, and the owner of record. Make sure the documents match the correct building and unit. This prevents errors that can slow title and closing.

Monthly dues and budget

Look for the current monthly assessment, due date, and what it covers. Note any budgeted increases. If utilities are included, confirm which ones and how they are allocated. This is your baseline carrying cost.

Reserves and reserve study

Check the reserve fund balance and whether the association follows a reserve study. Low reserves can signal future special assessments. In a high-rise, underfunded reserves are a common risk because big systems eventually need replacement.

Special assessments and projects

Review any approved or pending special assessments, the project scope, timeline, and payment schedule. Ask who pays what at closing, because responsibility can shift based on dates. In downtown buildings, envelope or mechanical projects can be large, so read this section closely.

Delinquencies and collections

Confirm whether the unit has any unpaid dues or fees. Review buildingwide delinquency levels if provided. High delinquency can strain the budget and lead to higher dues or special assessments.

Insurance coverage

Note the master policy types and deductibles, and whether interior finishes are covered or only “bare walls.” In Seattle, earthquake exposure is part of the risk picture. Plan for your own HO-6 policy to cover interiors, personal property, liability, and any deductible assessments if needed.

Litigation and claims

Read any disclosures about lawsuits or insurance claims involving the association. Construction defect or building envelope claims can lead to premium increases or large assessments. If litigation exists, ask for status updates and cost expectations.

Meeting minutes

Scan the most recent 12 to 24 months of minutes. Minutes often reveal upcoming projects, budget gaps, or recurring disputes not obvious in the financials. Use them to confirm whether a special assessment might be coming soon.

Rules and restrictions

Check rental caps, short-term rental rules, pet policies, smoking rules, guest guidelines, and parking use. The City of Seattle regulates short-term rentals at the municipal level, and the association may be stricter. Make sure the rules align with how you plan to use the unit.

Alterations and violations

Look for any recorded violations or outstanding approvals tied to the unit. Unauthorized alterations may require fixes or formal approvals. Confirm the approval process for future in-unit updates.

Utilities and services

See which utilities are paid through dues and which are separate. High-rise utilities, including central systems, can affect monthly costs. Submetering details help you estimate your usage.

Parking and storage

Confirm stall numbers, storage lockers, and whether they are deeded or license-based. Check transfer rules, fees, and any guest parking limits. In Downtown Seattle, parking assignment and transferability can affect value.

Transfer fees and rights

Identify any transfer fees, right of first refusal, or buyer approval steps. These can affect timelines and net proceeds. Plan for the process so your closing stays on track.

Environmental and structural issues

Review disclosures about water intrusion, past repairs, and any seismic or mechanical upgrades. Older towers and conversions can have unique needs. If major work is planned, request more detail.

Seattle-specific watchouts

• Building envelope repairs are common. Look for past or planned façade and waterproofing work and whether reserves can cover it.
• Seismic risk exists. Understand insurance deductibles and any plans for strengthening or mechanical upgrades.
• Short-term rental limits vary by building. Ensure your plans fit both city requirements and association rules.
• Parking is valuable. Verify assignment type and transfer terms since these influence resale value.
• Older conversions can carry unusual provisions. Read the governing documents carefully for unique clauses.

Red flags to pause on

• Significant special assessments approved or likely.
• Very low reserve balances or no reserve study.
• High association delinquency rates or lien activity.
• Active litigation, especially construction defects or envelope claims.
• Insurance with very high deductibles or limited coverage.
• Restrictions that conflict with your intended use, including rentals or pets.
• Unclear responsibility for repairs or open violations on the unit.

Process, timeline, and costs

• Who orders it: The seller or listing agent typically requests the resale certificate from the association or manager. Buyers, lenders, or escrow may also request updates.
• Timeline: Associations provide the packet within a set timeframe. Order early so you and your lender have time to review.
• Fees: Associations commonly charge a preparation fee. Confirm who pays and include it in your estimates.
• Updates: If closing is delayed, request an updated certificate near closing to capture any new assessments or changes.
• Escrow and title: Escrow and title will check for liens and unpaid assessments and may require payoffs at closing.

Buyer and seller checklists

Buyer quick list

• Verify the packet includes governing documents, budget, latest financials, reserve summary or study, insurance declarations, minutes from the last 12–24 months, delinquency or estoppel statement, special assessment list, and litigation disclosures.
• Confirm exact monthly dues, what they include, and effective dates for any changes.
• Review reserves, planned projects, insurance deductibles, and rules for rentals, pets, parking, and storage.
• If you see major issues, consult a local attorney and confirm your lender will still finance.

Seller quick list

• Order the packet early and confirm completeness to avoid delays.
• Clarify responsibility for any special assessments at closing.
• Resolve known violations or provide documentation of approvals.
• Be ready for buyer and lender questions about reserves, projects, and rules.

What to do if you spot issues

Ask for clarifications in writing from the manager or board if minutes hint at upcoming costs not shown in the budget. If litigation is active, request summaries and budget impact. For major structural work, ask for engineer reports, scope, and timelines. If your plans involve rentals or business use, confirm compliance with both city rules and association enforcement practices. When issues are material, speak with your agent, lender, title company, and a local attorney to protect your position.

Work with a local guide

You deserve clear answers and a smooth closing. A local, hands-on advisor helps you read between the lines, verify facts with the association, and keep your loan and timeline on track. If you are buying or selling a condo in Downtown Seattle, partner with a knowledgeable advocate who understands high-rise reserves, special assessments, and short-term rental rules. Connect with Michelle Codd for calm, concierge-level guidance from offer to keys.

FAQs

What is a condo resale certificate in Washington?

• It is a packet from the association or manager that summarizes the unit’s financials, rules, insurance, assessments, minutes, and any legal matters that affect ownership and financing.

Why do lenders in Seattle require a resale certificate?

• Lenders use it to confirm the building’s financial health, insurance coverage, and any risks that could affect the loan, closing, or the unit’s marketability.

What are common Downtown Seattle red flags?

• Low reserves, large or pending special assessments, active litigation, high master policy deductibles, and rules that conflict with your intended use, including rentals or pets.

How do special assessments affect closing?

• The certificate should state approved amounts and schedules; responsibility at closing depends on dates and contract terms, so confirm who pays and when.

What should I look for in insurance details?

• Check whether interiors are covered, note master policy deductibles, and plan for an HO-6 policy to cover finishes, personal property, liability, and deductible assessments if needed.

How do short-term rental rules impact my plan?

• The City of Seattle regulates short-term rentals and associations can be stricter; verify both sets of rules to make sure your intended use is allowed.