Guide to Selling Your Home
So, you’ve decided to sell your home in the Quakers Green Community – we wish you the best.
Since your home is situated within a “planned community” as defined by the Pennsylvania Uniform Planned Community Act, an additional requirement must be met before you can transfer ownership of your home. We hope the sale goes smoothly and to that end we have prepared this guide to help you understand the process.
According to §5407 of the PA Uniform Planned Community Act, you – the seller, must provide a considerable amount of information and documentation to the buyer prior to transferring your home. This information is commonly referred to as a “5407 Certificate”. Failure to provide the 5407 Certificate & related documentation can be used as grounds for the buyer to cancel the sale without penalty. Thankfully for you, the same law also provides that the Association must, upon a properly-made request, provide the required information & documentation to the seller. The law allows the Association 10 days to comply with the request, and permits a Special Assessment for this purpose.
The purpose of these provisions in the law is to protect the Buyer, the Seller, the Association and the community. The required documentation is designed to provide the buyer with all material information relating to membership in the Association, thus allowing for a more informed decision. By passing along to the buyer, the certificate & documentation provided by the Association, the seller cannot be held liable to the buyer for any erroneous information therein. The certification process helps to ensure that the Association collects all amounts rightfully due under the deed restrictions for the betterment of the membership. And home values in the community are protected by ensuring that the property being transferred complies with all applicable Architectural Guidelines.
How does this affect the sale of my home?
Generally, all alterations or improvements to your home and any conditions about your home, which are in violation of the Architectural Guidelines must be corrected before a favorable 5407 Certificate will be issued. The Association has a responsibility to protect the value of our homes and cannot permit such violations to survive a transfer of ownership. If any such violations exist at your property, settlement on your sale may be delayed significantly until the violations are satisfactorily corrected.
Your 5407 Certificate will include an itemized list of all amounts due at settlement. Certain amounts due will the responsibility of the seller, including:
- the Special Assessment for the preparation of the 5407 Certificate and documentation
- any outstanding assessments together with any late charges thereon
- any outstanding fines assessed against the property together with any late charges thereon
- any amounts due the Association relating to the optional use of the common areas or any services offered by the Association
- the remaining balance in full of any active Installment Agreements between the Association & the seller
- any judgments against the seller
These amounts will reduce the proceeds you receive or increase the amount due at settlement.
What can I do to prepare?
The Quakers Green Board of Directors wants to help make the sale of your house as easy as possible.
Once you have decided to sell your home, we recommend that you request a Preliminary Resale Certification Report. The report will describe any amounts due on your account and any conditions which must be corrected before settlement. It is designed to give you time to verify and correct these conditions so that they do not interfere with your settlement process.
The report can be requested by completing and returning a Request for Preliminary Resale Certification form. Please allow 10 days after we receive the request, for us to prepare your report.
How do I obtain a 5407 Certificate & the documentation?
Typically, the seller’s real estate agent, or in some cases, the settlement agent will request the certification and pay the Special Assessment. Your real estate agent should certainly know this and the 5407 Certification requirement, but it never hurts to make sure.
A 5407 Certification may be requested by completing and returning a Request for Resale Certificate form. Please allow 10 days after we receive the request, for preparation of the certification kit.
If you have any questions regarding the requirements discussed herein, please contact the Association office.