Pennsylvania Uniform Planned Community Act Resale Certificate-PA Form 5407 and Buyer Capital Contribution Guidelines

6/1/17

The Board of Directors of The Reserve at Chadds Ford Community Association (“HOA”) created the following to guide the HOA on how best to respond to complying with the HOA’s requirement to provide a Resale Certificate under Section 5407 of the Pennsylvania Uniform Planned Community Act.

Background

Section 5407 of the Pennsylvania Uniform Planned Community Act (“the Act”) requires a Resale Certificate be requested once a home has a buyer and prior to the date of closing. As set forth in the Act, the HOA has ten (10) days from the date of request to provide the information and copies of documents required to comply with Section 5407.

Policy Outline

    The HOA’s Guidelines are as follows:

  1. All requests for Resale Certificates are to be made to the HOA Secretary. These requests are typically made by the Seller (aka resident) or the Seller’s realtor.

  2. The HOA will within the required ten (10) day time frame provide the following to the requesting party:

    • Prepare a certified copy of the Resale Certificate (Exhibit A)

    • A certified copy of the HOA Covenants and Restrictions

    • A certified copy of the HOA By-Laws

    *There shall be a $250 invoice sent with the documents enumerated above which will be payable by the party making the request. Payment should be made by check with the check being payable to “The Reserve at Chadds Ford Community Association” and shall be mailed to the HOA’s post office box (i.e., PO Box 332, Chadds Ford, PA 19317)


  3. Buyers of homes located within The Reserve at Chadds Ford will at closing be responsible for the payment of a one-time capital contribution of $500. An invoice will be sent to the Seller’s realtor with a request that it be forwarded to the buyer, their realtor, title agent or legal counsel handling the transaction.

    4. Payment should be made by check with the check being payable to “The Reserve at Chadds Ford Community Association” and shall be mailed to the HOA’s post office box (i.e., PO Box 332, Chadds Ford, PA 19317)

Please note that all funds collected will be used towards the maintenance and/or beautification of the community. Further, it will also entitle the Seller to participate in one HOA social event anytime within one (1) year of having sold their home, at no cost to the former resident.