Selling Your Unit
Seller (Member) must notify the Mutual office in writing of their intent to sell. A sixty (60) day notice is requested. If you currently have a mortgage, please contact and inform them you are selling and that your Membership Certificate needs to be available for closing. The mortgage company may take four (4) to six (6) weeks to locate the certificate.
Seller (Member) must advise the buyer that they must be approved for Membership and an application can be obtained at the Mutual office. The application takes approximately thirty (30) days to process. This includes obtaining a credit report, interview, review of application by Board members and receipt of approval/denial letter. The application must be obtained and returned to the office in person by the buyer and signed at the Mutual office. A $75.00 nonrefundable fee is required.
Closing dates are to be scheduled with the Mutual office only after the unit passes both inspections (AVMA and Township). After your first AVMA inspection you will be given a copy (or a copy will be mailed to you) of the deficiencies in your unit. If there are AVMA repairs that need to be done, you must schedule them with the Maintenance Department. You are not to schedule a second inspection until all repairs have been made. When you schedule your second inspection, the unit must be clear of all furniture. If more than two (2) inspections are done on your unit (initial and final), you will be charged $20.00 per inspection. All open permits, AVMA and State, must be closed out (inspected and approved) before a closing date will be scheduled. If work was done in your unit that required an AVMA and/or State permit and there are no permits in your file, you will be fined $250.00 for non-compliance and the closing will not take place until this is cleared.
The Code Enforcement Officer of Shrewsbury Township will also do an inspection. Please contact the Township office at 732-542-0572. There is a $100.00 fee for this inspection. If the unit is being sold “AS IS”, the buyer is required to have their attorney submit an affidavit to Shrewsbury Township agreeing to not take occupancy until all repairs are completed and inspected. This will enable the buyer to close title prior to issuance of a Certificate of Continued Occupancy (CO). A copy of this affidavit must also be given to AVMA before the closing.
Seller (Member) pays an escrow deposit of $500.00 on the date of transfer. This check must be certified or from attorney trust account. Escrow deposit is held for approximately sixty (60) days or until the Seller’s portion of their last utility bill is paid. If during this time damages to the unit are found by AVMA or the buyer regarding AVMA property that needs to be repaired or replaced, and is found to be the responsibility of the seller, the escrow will be held until the repair is made. Examples of damages are: holes in sheetrock, broken windowpanes, floor damages due to unreported leaks or appliances. If determined by the Maintenance Committee at the final inspection, an additional escrow deposit may be required. Please note: an electric and water meter reading will be taken on the date of closing. Your $500.00 escrow will be held until all utilities are paid in full. Any PAST DUE fines (yard, non-compliance, and etc.), legal fees, utilities, monthly fees, sur charges, lease fees and etc. will be paid at the closing. If any of these monies are owed to the association and are not paid at closing, the closing will be cancelled until paid. Also due from the Seller (Member) is a closing fee of $400.00. This check must be certified or from attorney trust account.
New Member (Buyer) pays one (1) month security on the date of transfer and a closing fee of $400.00. The security deposit amount is equal to the current monthly payment. Security deposit plus interest will be returned to the new Member after establishing twelve (12) months consecutive good payment record.
New Member (Buyer) is not to move anything into the unit until all corrections and repairs have been made and a closing has taken place. There is a $250.00 non-compliance fine for this offense.
All inspections are the responsibility of the current owner to schedule with AVMA Maintenance Department, Shrewsbury Township and heating system contractor. Prior to scheduling an AVMA inspection, please confirm with the Mutual office that there are no outstanding AVMA and or State Permits for your unit. If there are, these items will also need to be inspected by AVMA and or the State Office. Any item found on the AVMA inspection that was installed without the proper AVMA and/or State Permits must be removed before a closing will be scheduled. All required paperwork must also be provided to the Mutual office before a closing will be scheduled. Inspections include: an initial AVMA sale inspection, a second (final) AVMA inspection to ensure repairs are satisfactory (if you unit passes on the initial inspection this will not be necessary), Certificate of Continued Occupancy (CO) from Shrewsbury Township and complete heating system inspection, which includes oil/gas furnace and oil tank. If the unit is heated by oil, a soil-boring test must be done on the underground storage tank. The test must consist of four (4) borings and must be done by a certified environmental specialist. The results must then be supplied to the Mutual office before the closing. If the underground oil tank is leaking, the unit cannot be sold until clean up is complete and a No Further Action letter is received from the New Jersey Department of Environmental Protection and a copy is supplied to AVMA. If the Buyer is purchasing your unit with a temporary above ground tank, you must disclose the length of time left for this tank. Temporary above ground tanks have a 5-year limit. If you have insurance on your underground storage tank, please make sure it is transferable to the Buyer. If the tank does not leak, proof of oil tank insurance that can be transferred to a buyer must be provided to the AVMA or remove the tank before the unit is sold.
Seller must provide the Mutual office with the following: Names, addresses and phone numbers of real estate agent, attorney, lender/mortgage company (if you still have a mortgage) and the full purchase price of the unit. If you still have a mortgage, the association will need a payoff letter on the original certificate number for your unit.
A copy of these instructions must be given to your real estate agent and attorney.
Once the above criteria are met and the Buyer has their AVMA approval letter and mortgage commitment, a closing date can be scheduled with the Mutual office. Closings are to be scheduled with and held only in the Mutual office.
Please contact the Mutual office if you have any questions.