Starting October 1, 2026, every condo, co-op, or HOA-governed home sold in Connecticut comes with a new special statement built into the Residential Condition Report. It's not about the roof or the furnace. It's about the association's finances, and whether the buyer actually knows what they're walking into.
The law is Public Act 26-31, originally House Bill 5265. Officially it's titled an act concerning court-ordered accountings of common interest community financial records and revising disclosure requirements for common interest communities. Long name, simple idea: Connecticut wants buyers to stop finding out about a shortfall after they've closed.
This has been a long time coming. I had a buyer client move into a condo, get settled in, and then get hit with a special assessment letter well after closing — the reserve fund had never been funded properly, and nobody was required to spell that out before they signed. Now they are.
Worth knowing: This is a disclosure change, not a new condo law overall. It doesn't change HOA rules or how associations operate - it changes what sellers have to tell buyers before they sign.
What the New Statement Actually Says
Per the legislature's official summary, the new special statement tells the buyer to do one of two things, depending on the size of the association:
- More than 12 units: Request a resale certificate and a reserve fund report before you commit.
- 12 units or fewer: Consult with professionals - an attorney, an accountant - and talk to other owners about any ownership issues before you commit.
Basically, it's Connecticut telling buyers: don't just trust the listing photos and the HOA fee number on the flyer. Go get the paperwork that actually shows whether this association has money set aside or is one bad winter away from a special assessment.
A resale certificate is the association's snapshot of itself at the moment of sale - current dues, any pending litigation, any planned assessments, the state of the reserve account. A reserve fund report shows whether the association has been saving enough for big-ticket items - roofs, siding, parking lots, elevators - or whether it's been kicking that can down the road.
Oct. 1, 2026effective date for PA 26-31's new disclosure requirement
Why This Is Happening Now
Surprise special assessments and reserve shortfalls have become a real pain point in Connecticut associations. Buyers' attorneys asking for the reserve report during due diligence has become the moment sellers find out their own association was underfunded all along. The answer isn't good.
So here's the long story short: a lot of smaller and mid-size associations in CT have kept dues artificially low for years to keep owners happy, while deferring the roof, the pavement, the siding. That works fine until it doesn't. When the bill comes due, it comes due as a special assessment - sometimes due within 30 or 60 days.
Buyers who didn't ask the right questions before closing inherit that problem. That's the gap this law is trying to close. It's not a huge structural overhaul. It's a disclosure fix - basically forcing the conversation to happen before the closing table instead of after.
Worth knowing: This is separate from the flood disclosure changes and the hidden-listings marketing law also taking effect October 1, 2026. Three different changes, same date - don't mix them up when you're prepping paperwork this fall.
What Sellers Need to Do Differently
If you're listing a condo, co-op, or HOA property this fall, the disclosure form itself changes. You'll be signing off on the new special statement as part of the Residential Condition Report, same as you already do for the general property condition.
What that means practically:
- Talk to your association management company now, not the week before closing, about how quickly they can produce a resale certificate and reserve fund report.
- If your association is under 12 units and doesn't have formal reserve reporting, know that buyers are now being explicitly told to go ask other owners questions. Be ready for that.
- If you know the reserve fund is thin or a special assessment is being discussed, that's not something to bury. Buyers are going to find out - the law is designed specifically so they will.
Associations that keep clean books and current reserve reports sell faster and with less friction at the closing table. That's not a hedge, that's what I've watched happen. The ones that don't create a scramble right when you can least afford one - mid-contract, with a buyer's attorney asking questions you can't answer fast enough.
Bottom line: Get your association's paperwork in order before you list, not after an offer comes in. A clean resale certificate and reserve report make your listing move faster, not slower.
What Buyers Should Demand Before Waiving Anything
If you're under contract on a CT condo this fall, or about to be, here's what changes for you. Once this disclosure line exists on the form, you have no excuse not to ask for it.
| Association Size | What to Request | What It Tells You |
|---|
| More than 12 units | Resale certificate + reserve fund report | Current dues, pending litigation, reserve balance, planned assessments |
| 12 units or fewer | Consult attorney/accountant + talk to owners | Informal history of assessments, disputes, deferred maintenance |
This is especially important if you're thinking about waiving contingencies to make your offer competitive. Waiving inspection is one thing - waiving your review of the association's finances is a different kind of risk. You could waive inspection on the unit itself and still ask for 100% of the association's financial documents before you close. Those are two separate decisions, and conflating them is a mistake.
But full pre-approval matters here too. Lenders increasingly scrutinize HOA financials on condo loans. A reserve fund that's underfunded can actually affect whether the loan gets approved at all, not just whether you personally feel comfortable with the purchase.
What This Doesn't Fix
Let me put it this way: this law makes the conversation mandatory. It doesn't make the underlying problem go away. An association that's been underfunding its reserves for a decade doesn't suddenly have money because a new form exists. What changes is that now the buyer can't say they weren't told to ask.
That's still a real improvement. In Southington, Berlin, and Newington, where condo inventory moves fast and multiple-offer situations are common, buyers have been known to waive contingencies just to win. This new disclosure line gives buyers - and their agents - a legitimate, legally-backed reason to slow down on the financial side even when the market is telling them to move fast on everything else.
And so on and so on for the rest of the transaction - inspection, title, the usual closing mechanics. This is one piece, but it's a piece that's been missing. That is the whole game.
Frequently Asked Questions
Does this new disclosure rule apply to single-family homes with no HOA?
No. The new special statement only applies to condos, co-ops, and other common interest communities governed by an association. Single-family homes without an HOA use the standard Residential Property Condition Disclosure Report unchanged.
What's the difference between a resale certificate and a reserve fund report?
A resale certificate is a snapshot of the association's current status - dues, pending litigation, planned assessments. A reserve fund report shows how much money the association has saved for big future repairs like roofs or parking lots, and whether that amount is adequate.
What happens if my association has 12 units or fewer?
The law directs buyers of smaller associations to consult with professionals - an attorney or accountant - and talk to other unit owners about possible issues, rather than requiring a formal resale certificate and reserve report.
Can I still waive contingencies on a condo purchase after this law takes effect?
You can, but Peter's advice is to separate the inspection contingency from your financial due diligence on the association. Waiving inspection is a different risk than skipping review of the association's reserve fund and resale certificate.
Is this the only Connecticut real estate law changing October 1, 2026?
No. Flood disclosure requirements and a new law affecting hidden listings also take effect the same day. They're separate changes covered elsewhere on our blog - this post is specifically about the condo/HOA disclosure statement.