The new estoppel legislation for condominiums, coops and homeowner associations becomes effective on July 1, 2017. What follows is a summary of the condominium estoppel law but the laws for coops and homeowner associations are mostly the same. As always, since this is only a summary, please refer to the law itself for the full text of the legislation.
1). The association has 10 business days after receiving the request to provide the certificate. If the association fails to provide the certificate within 10 business days, a fee cannot be charged to prepare and deliver the certificate thereafter.
2). The certificate must contain the following information substantially in the following form:
1. date of issuance
2. name of owner(s)
3. unit identification and address
4. parking or garage space number
5. attorney’s name and contact info if the account is delinquent and already turned over for collection. “No fee may be charged for this information.”
6. fee for preparation and delivery of the certificate;
7. name of requestor;
8. assessment and other information, including
9. regular assessment per payment period,
10. the date for which payments are paid through,
11. next installment amount and due date,
12. an itemized list of all assessments, special assessments and other money owed to the association by the unit owner
13. an itemized list of any additional assessments and other money scheduled to become due for the effective estoppel period.
14. any capital contribution fee or transfer fee and the amount
15. any open violations
16. whether approval of the transfer is required,
17. whether there is a right of first refusal, and if so, has it been exercised
18. a list and contact info for all other associations, if any, of which the unit is a member,
19. contact information for all insurance maintained by the association,
20. signature of the agent who prepares it.
3). The certificate is effective for 30 days, and if the association makes an error, it may not charge another fee to prepare the amended certificate.
4). Preparation fees are limited as follows:
a) to $250 if, on the date it is prepared, the account is not delinquent, and
b) an additional fee not to exceed $150.00 may be charged if the account is delinquent, and
c) Another fee of $100 may be charged if the certificate is requested on an expedited basis and delivered within 3 business days after the request.
d) If a single owner owns multiple units up to 25, the fee may not exceed $750.00.
Every 5 years, the Department of Business and Professional Regulation must adjust these fees based on the Consumer Price Index.
5). A Resolution authorizing the fees must be adopted by the Board or the fee must be stated in an agreement with management. The fee is payable upon preparation of the certificate. If the fee is not paid by the owner and the sale does not close, the payor can obtain a refund but the owner is liable to pay the fee to the Association. The right to a refund cannot be waived.
6). The Association shall designate on its website a person or entity with a street or email address who is to receive the request for an estoppel certificate.
Michael E. Rehr, Esq.