DC Condo Resale Package: What Buyers Should Review

Are you under contract on a condo in Adams Morgan and waiting on the resale package? This set of documents is the most important file you will read before closing because it shows the building’s rules, finances, and any upcoming costs tied to your unit. If you feel unsure about what matters and what to flag, you are not alone. In this guide, you will learn what to review, how long you have, the red flags to watch, and how to negotiate if something concerning appears. Let’s dive in.

What a DC resale package includes

A DC condo or co-op resale package contains association documents and a legal statement of your unit’s standing. You will typically see these items:

• Governing documents: Declaration, Bylaws, Articles, and Rules & Regulations. Confirm unit boundaries, limited common elements like parking or balconies, board structure, voting rights, amendment procedures, rental and subletting rules, short-term rental rules, pet and smoking rules, and noise policies. For co-ops, review the proprietary lease and shareholder agreement, including transfer approval steps and any resale restrictions.
• Estoppel or resale certificate: The official statement of your unit’s account. Verify current monthly assessment amount and due date, whether the seller is delinquent, any approved or pending special assessments, transfer and move fees, and if there is an estoppel fee and turnaround timeline.
• Financials: Current year budget, recent financial statements, reserve study, reserve fund balance, and any audit or CPA review. Check cash on hand, assessment trends, and how reserve contributions compare to reserve study recommendations.
• Minutes and management reports: Board and annual meeting minutes, usually 12 to 24 months. Watch for repeated maintenance issues, vendor conflicts, talk of large projects, or frequent closed sessions that may hint at major but undisclosed concerns.
• Insurance documents: Master policy declarations and certificate of insurance. Note coverage types and limits, deductibles, whether the policy is all-in or requires you to carry an HO-6 policy for interiors, and whether there is loss assessment coverage.
• Litigation disclosures: Any pending or threatened litigation with the association, management, or developer. Request the issue summary, potential financial exposure, and counsel’s general assessment.
• Contracts and vendors: Management agreement and major service contracts like elevator, roofing, or mechanical systems. Check contract length and termination penalties.
• Capital projects and assessments: Notices of upcoming or approved projects, deferred maintenance lists, and collection schedules for assessments. Confirm what is funded versus unfunded.
• Unit-specific items: Any approved modifications, open violations, certificates, and parking or storage assignments or deeds. For co-ops, check the shareholder ledger and approval process steps.
• Third-party approvals: FHA or VA project approval status if you are using those loan programs, and any known lender or insurer restrictions that could affect financing.

Practical note: Associations often charge a fee for the resale package and may charge extra for expedited estoppel processing. The amount and timing vary by building.

Timelines and fees to expect in DC

Your specific contract controls the timeline, but common local practices include:

• Document review window: Often 7 to 10 days, sometimes 10 business days. Confirm your exact contingency period in your contract.
• Estoppel turnaround: Commonly 3 to 14 days. Some associations offer expedited service for an additional fee.
• Fees: Many DC area associations charge in the low hundreds of dollars for resale packages or estoppels, but amounts vary.

During your review period, you can raise objections, negotiate solutions, or terminate if your contract allows. If the association delays delivery, you can ask the seller for an extension or other protections.

How to read the numbers

The financial pages are where most red flags appear. Focus on these areas.

Reserves and reserve study

• Compare the reserve fund balance to the most recent reserve study recommendations.
• A material gap, especially with big projects on the horizon, is a red flag.
• Ask the board for context, request a seller escrow or credit, or prepare to walk if the risk is large and unavoidable.

Special assessments

• Confirm the amount, purpose, start date, and collection schedule for any assessments.
• Large, unfunded assessments that will hit soon after closing are a key risk.
• Negotiate for the seller to pay or escrow funds, delay closing until paid, or terminate if allowed.

Delinquencies and collections

• Look at accounts receivable and delinquency trends in the financials.
• A high owner delinquency rate can strain the budget and lead to higher fees or deferred maintenance.
• Ask about collection policies and pending actions, then weigh whether you need extra protection or a price concession.

Insurance limits and deductibles

• Review the master policy limits, deductibles, and owner responsibilities.
• Large deductibles or coverage gaps can lead to loss assessments to owners.
• Confirm your HO-6 needs and endorsements, and ask for claims history context if available.

Litigation exposure

• Identify the nature of any litigation, who is involved, and the potential cost.
• Structural defects, façade or roof failures, or developer disputes can be material risks.
• Consider escrow protections, price adjustments, or termination if exposure is high.

Governance and management

• Watch for frequent board turnover, recurring vendor disputes, or long contracts with heavy termination penalties.
• Chronic governance problems can affect maintenance, budgets, and morale.
• If dysfunction seems ongoing, treat it as a serious risk.

Adams Morgan patterns to watch

Adams Morgan’s housing stock includes many older conversions and small associations. That character brings unique considerations.

• Older buildings and conversions: Smaller associations may have limited economies of scale, modest reserves, and potential deferred maintenance on roofs, façades, masonry, and windows. Compare the reserve study to actual reserves and recent capital spending.
• Parking scarcity: Verify whether parking is deeded, assigned, or separate, and confirm any storage. Parking availability can influence monthly costs and resale value.
• Higher investor presence in some buildings: Check rental caps, lease approval rules, and how renter share might affect wear, collections, and governance.
• Noise and short-term rentals: Review rules and enforcement history around noise and short-term rentals. Meeting minutes often reveal how the board handles complaints.
• Lean budgets and vendor turnover: Smaller buildings may switch vendors more often or rely on reactive maintenance. Look for consistency in contracts and results.

Illustrative scenarios

• Reserve shortfall: A 12-unit conversion needs roof and window work in three years at an estimated $200,000, but reserves sit at $10,000. Ask for a detailed plan, negotiate escrow or credits, or walk if there is no realistic path to funding.
• Façade litigation: Ongoing litigation against a developer or contractor for façade issues with no cost estimate disclosed. Seek a written summary from counsel and an escrow sized to a reasonable worst case, or consider terminating.
• Vendor disputes: Minutes show repeated unpaid vendor claims and threats of liens. Request contracts and payment history, then decide if conditions to proceed or a price change are needed.

Negotiation playbook after review

If your review reveals concerns, you have options. Use them early and in writing within your contingency period.

• Seller cures before closing: The seller pays any unit delinquencies or approved special assessments that would otherwise pass to you.
• Escrow at closing: Hold funds equal to a known assessment or estimated exposure, with clear release conditions when the issue is resolved.
• Price reduction or closing credit: Offset anticipated costs tied to upcoming projects or litigation risk.
• Repairs or project milestones pre-closing: Rare, but sometimes possible if the seller controls approvals.
• Contract termination: If risks are too high or documents are incomplete and the association will not cure, you may be able to terminate under your contingency.

Best practices:

• Get itemized numbers and timelines for capital projects and assessments.
• Involve your lender early, especially if FHA or VA approval is needed.
• Confirm escrow terms with the title company so release triggers are clear.

Quick checklist before your deadline

Use this list to stay focused during your review window.

1. Confirm your review deadline and set reminders for mid-point and 24 hours before.
2. Read the estoppel first to verify monthly fees, delinquencies, and assessments.
3. Compare reserves to the reserve study and ask about large projects.
4. Scan minutes for repeated issues and disputes over the past 12 to 24 months.
5. Review master insurance, deductibles, and HO-6 requirements.
6. Note any litigation and request a written summary of exposure.
7. Verify parking and storage assignments or deeds.
8. Check rental policies, STR rules, and enforcement notes.
9. Confirm FHA or VA approval if needed for your loan.
10. Decide to proceed, negotiate, or terminate before your deadline.

Work with a local guide

Reading a resale package takes time, context, and a plan. A local advisor who knows Adams Morgan buildings can help you interpret reserve studies, estimate the real impact of projects, and set smart negotiation targets within your contingency window. If you want a calm, step-by-step review and clear next steps, reach out to schedule time.

Ready to review your resale package with a trusted guide? Connect with Tamara Miller for a friendly, expert walkthrough of your Adams Morgan condo documents.

FAQs

How long do DC buyers have to review a condo resale package?

• Most contracts give you about 7 to 10 days, but your exact document review contingency controls the deadline.

What if the association delays the estoppel or documents in Adams Morgan?

• Ask the seller to push for expedited delivery and request a written extension of your review period if permitted by your contract.

Who typically pays DC condo resale or estoppel fees?

• It depends on your contract; many sellers pay, but the fee can be negotiated and may vary by building.

Can a large special assessment affect my loan approval in DC?

• Yes, big assessments and weak reserves can concern lenders, so involve your lender early and provide all documents for review.

What are the biggest red flags in Adams Morgan condo documents?

• Material reserve shortfalls with near-term projects, active litigation on core building systems, high delinquencies, large deductibles, and chronic management disputes.