All initial sales and resales of properties located in a property owners/homeowners association require that the buyer receive a Disclosure Packet Notice (“Disclosure Notice”) developed by the Virginia Common Interest Community (CIC) Board which includes a list of the information and association documents which must be disclosed to a buyer upon entering into a purchase contract. Below in italics is an email we received from the CIC Board regarding an update to the Disclosure Notice.
“Effective July 1, 2020, associations subject to the Property Owners’ Association Act (“POA Act”) will be required to furnish the revised POA Act Disclosure Packet Notice as part of all disclosure packets.
Property Owners’ Association Disclosure Packet Notice (REVISED effective 7/1/20) (http://www.dpor.virginia.gov/uploadedFiles/MainSite/Content/Boards/CIC/POA%20Disclosure%20Packet%20Notice-eff07-01-2020.pdf)
The Common Interest Community Board adopted this form as the result of HB 720 passing during the 2020 General Assembly Session. This legislation amended §§ 55.1-1809 and 55.1-1814. of the Code of Virginia.
Carefully review the form and be prepared to begin using it for any POA disclosure packets prepared beginning July 1, 2020. Please be advised that failure to provide the required notice as part of a disclosure packet may be a violation of the POA Act.
You can also access this document on the Board’s webpage. (http://www.dpor.virginia.gov/CIC-Board/Disclosure_Notices/)”
NEW ADDITION TO RESALE DISCLOSURE
House Bill 720 amended § 55.1-1909 of the POA Act entitled “Contents of association packet; delivery of packet” and § 55.1-1814 entitled “Exceptions to disclosure requirements” by adding a new requirement that a Disclosure Notice must include the following:
“A statement setting forth any restrictions as to the size, place, duration, or manner of placement or display of political signs by a lot owner on his lot.”
We recommend that associations review their governing documents and their rules and regulations regarding the use and display of signs and, in particular, political signs in light of these new disclosure requirements. If your association board of directors needs assistance in determining if the board has the authority in your governing documents to enact new rules or revise existing rules regarding the use or placement of signs in your community, we can assist you in staying in compliance with your governing documents and the provisions of the POA Act.