Maine Real Estate License Practice Exam

When transferring a previously owned condominium unit, when must the buyer receive a resale certificate?

1. 10 days before the transfer

2. At closing

3. Immediately after the annual association meeting

4. To make the contract binding

The correct answer is: To make the contract binding

The buyer must receive a resale certificate when transferring a previously owned condominium unit to ensure they have all the necessary information about the condominium association and the specific unit being purchased. This document includes crucial details concerning the financial status, rules, and regulations of the association, which can significantly influence the buyer's decision to proceed with the sale. In many jurisdictions, including Maine, the resale certificate is critical for the buyer to review before finalizing the transaction. It provides transparency about any potential liabilities and obligations attached to the condominium, helping buyers make informed decisions. Consequently, for a purchase agreement to be considered binding, the provision requiring the resale certificate to be delivered to the buyer prior to closing is essential. This process ensures that the buyer is adequately informed and can fully understand what they are entering into in terms of ownership and association rules. The other options do not accurately reflect the timing requirements or the importance of delivering the resale certificate to ensure the buyer is informed prior to closing the transaction.