Change to Resale Certificate Review Timeline for CIC Condos
The Resale Certificate review period timeline for condo properties under the Common Interest Community (CIC) classification of WUCIOA has been clarified as of Sunday, July 27, 2025. This has the potential to adversely impact some condo buyers.
What is a Resale Certificate?
A Resale Certificate contains documentation pertaining to a condominium and its homeowners association. It is governed by Washington State statute.
It’s comprised of a number of documents including the declarations, covenants / conditions / restrictions (CC&Rs) and bylaws. It includes financial statements (e.g. budget, income statement, balance sheet, etc). It should contain the Reserve Study, information about assessments and judgements, insurance and so forth. The Resale Certificate provides an overview of the health and management of the condominium, its finances and the HOA.
What is WUCIOA?
WUCIOA stands for the Washington Uniform Common Interest Ownership Act and went into effect on July 1, 2018. It replaced Washington’s Condominium Act, the Homeowner Association Act and the Land Development Act. WUCIOA was created to impart uniformity of the regulation of condominiums, cooperatives and planned communities.
Condominium associations established with CC&Rs recorded on or after July 1st, 2018 are defined and covered as a Common Interest Community (CIC) under WUCIOA. Though, there are exemptions for smaller condos and those with dues below a certain threshold.
Condos established prior to July 1, 2018 do not fall under WUCIOA, which encompasses the overwhelming majority of condos. However, they may opt-in to WUCIOA.
The Resale Certificate Review Period Timeline
The Resale Certificate review period is a contingency provided to buyers by state law. Buyers have five (5) business days to review the information upon its receipt from the Seller or Listing Agent. The Resale Certificate provides Buyers a unilateral right to terminate the sale and receive their earnest money deposit back.
The Buyer’s five day review clock starts when they receive a complete Resale Certificate and its associated documents. In most cases, this occurs on or after Mutual Acceptance.
If the Resale Certificate is received prior to Mutual Acceptance, the Buyer’s five day clock starts at Mutual, benefiting the buyer. In either scenario, Buyers retain the right to review the documents and to unilaterally terminate the sale for at least five days after Mutual Acceptance.
What Is Changing And How Does It Affect Me?
Effective July 27, 2025, for condominiums and co-ops established on or after July 1, 2018, the Buyer’s review period clock will start ticking as soon as the Buyer, or their Buyer’s Agent, receives the Resale Certificate documents. This applies even if it is received prior to Mutual Acceptance.
Buyers still retain their full five day period to review the Resale Certificate and associated documents. However, the change to when that timeframe begins may negatively affect buyers, particularly their opportunity to terminate the sale.
Examples:
Buyer receives the Resale Certificate at Mutual Acceptance. The Buyer has their full five day review period from Mutual Acceptance to review the documents and determine whether to continue or terminate the purchase.
Buyer receives the Resale Certificate after Mutual Acceptance. The Buyer has their full five day review period starting upon receipt to review the documents and determine whether to continue or terminate the purchase.
Buyer receives the Resale Certificate three days prior Mutual Acceptance. The clock starts ticking when received, so the Buyer only has two of their five days remaining at Mutual Acceptance to determine whether to continue or terminate the purchase.
Buyer receives the Resale Certificate more than five days prior to Mutual Acceptance. The Buyer’s five day review period will have expired by the time of Mutual Acceptance. The buyer does not have the protection of the Resale Certificate contingency and no longer has the right to terminate the sale.
In Summary
The Resale Certificate review period clock now starts immediately upon receipt of a complete Resale Certificate and associated documents for WUCIOA CIC classified condos and co-ops. These are limited to condos and co-ops established on or after July 1, 2018.
Buyers should be aware that the timeline can now start prior to Mutual Acceptance. Buyers who may be relying on having their full five day period after Mutual Acceptance for strategic purposes may no longer have that option. And, it may affect their opportunity to terminate the sale. Thus, if they receive the Resale Certificate more than five days in advance, then they may need to contemplate whether or not to proceed with an offer.
Of course, Buyers may still have other contingencies that may apply, such as Financing or Inspection. So, potentially they have other protections and may be able to terminate the sale under those contingencies, if appropriate.
