Information for our
About Resale Packages
by Bernie J. Grablowsky,
The Virginia Property Owners Association Act and the Virginia Condominium Act were enacted requiring disclosure of association information. Several people are responsible for making sure a home sale complies with that law: the real estate agents, attorneys and the seller.
Under the act, a community association has 14 days to provide a disclosure packet from the time the request is received with a check. Thus, a seller or his agent must ask the association for the packet as soon as the contract is signed. After receiving the information on dues, rules and other matters, the buyer has three days to decide whether to cancel the contract based on information contained in the packet. When the packet is requested at the last minute, there is no real opportunity to review the information, so the purpose of disclosure is defeated or the seller is put at a great disadvantage. As a result of such delay, the buyer is often committed to going through with the deal, even if he or she may be unhappy living in the community.
A prompt request for the disclosure packet will allow the buyer to be fully informed. The packet contains critical financial data, insurance coverage, recorded covenants, architectural guidelines and rules and regulations with which the owner will be expected to comply once he becomes a homeowner. The packet also contains information on reserve funds for repairs and future renovations and a statement as to the existence of any architectural violations existing on the property.
Most settlement attorneys do not receive a sales contract until well after it is signed – often after the loan is approved. Aside from the buyer and seller, real estate agents are usually the only people involved at a contract’s inception. Agents for buyers of condominiums and other association properties should inform the closing attorneys or settlement agent by providing a copy of the resale documents to them immediately upon receipt.
By failing to advise buyers to review an association’s disclosure packet, an agent might be failing to “disclose material facts” about the home for sale.
Our thanks to G. Robert Kirkland, president of a Virginia Beach property management consulting firm, and Michael A. Inman, an attorney specializing in Virginia community association issues, for providing this information.
The UPA Management Library contains an ever-growing collection of articles and papers of interest to association boards and management as well as rental property owners.
If you have an idea or a possible submission for inclusion in the Library, please contact Debra Young at email@example.com.
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