For anyone purchasing a property within a condominium or homeowners’ association, two documents often appear during the transaction process: the resale package and the condo questionnaire. Though they may seem similar, each serves a distinct purpose – and both can impact a buyer’s closing costs.
A resale package or HOA/Condo disclosure packet is designed to protect buyers by providing full transparency into the health and operation of the association they will be joining.
This document typically includes the HOA/Condo’s governing documents, financial statements, current budget, insurance information, details about any pending litigation, and an outline of fees the buyer will be responsible for.
It also confirms whether the current homeowner is up to date on dues and assessments. The goal is to ensure that buyers understand exactly what they’re stepping into—financially and operationally—before finalizing their purchase.
In contrast, a condo questionnaire isn’t for the buyer directly; it is for the lender. When a buyer uses mortgage financing, especially with conventional, FHA, or VA loans, the lender must evaluate the overall stability and eligibility of the condominium project. They do this through a detailed questionnaire completed by the association or its management company.
The condo questionnaire form includes questions about the percentage of owner-occupied units, the number of units owned by a single entity, the adequacy of the association’s reserve funds, recent special assessments, insurance coverage, and whether there is any ongoing or anticipated litigation.
Essentially, the questionnaire helps the lender assess whether the building itself meets financing guidelines – because even a well-qualified buyer cannot obtain a loan for a condo that does not.
Both documents often come with fees charged by the association or management company. Resale packages can range widely in price, but on average cost about $250-300, and are paid for and provided by the seller to a buyer.
Condo questionnaires may also incur additional fees, but this charge is traditionally paid for by the buyer.
Jason Cook, Eastern Shore Manager with Embrace Home Loans, explains, “For buyers, understanding these documents early in the process helps set realistic expectations. While the fees may feel like an unexpected add-on, both documents play an important role: one protects the buyer by promoting transparency, and the other protects the lender by ensuring the property meets financing standards. Together, they help create a smoother and more informed path to closing – one that benefits everyone involved.”
Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.
