A couple of months ago we informed you of major changes coming to resale disclosure requirements and the fees that can be charged for preparing those disclosures.  Those changes went into effect on July 1, 2018 and we wanted to remind you that you must now be complying with those changes.

Every homeowners association disclosure for both initial sales by the developer and resales is required to include a form developed by the Common Interest Community (CIC) Board titled “Property Owners’ Association Disclosure Packet Notice.”  This form has always been required for homeowners associations initial sales and resales but the form has been revised to include multiple additional disclosures enacted by the Virginia General Assembly. Continue Reading CHANGES TO RESALE DISCLOSURE REQUIREMENTS AND FEES HAVE NOW BECOME LAW

It seems like we have to say this every year, but the Virginia General Assembly was very busy again this session making amendments to the content and fee structures for condominium and homeowner association disclosure requirements.  These changes are significant so we wanted to give association boards and managers time to prepare before these changes go into effect on July 1, 2018.

House Bill 923 focused first on the disclosure form provided by the Common Interest Community (CIC) Board and made significant additions.  It now must contain the following statements to alert buyers to certain aspects of ownership in a community association even though some of these items will not apply in every community:  Continue Reading Big Changes Coming Soon to Resale Disclosure Requirements and Fees

If there is one thing we seem to be able to count on from the Virginia General Assembly, its frequent amendments to the statutes regarding association resale certificates and 2017 was no exception.

Under the “News You Can Use” section of this site, Jeanne Lauer explained the new legislation regarding “For Sale” signs in condominium and homeowners associations which became effective July 1, 2017. That posting is a must read for anyone preparing resale certificates for an association because “For Sale” sign regulations in your Declaration (and/or Bylaws for a condominium) must be disclosed in association resale certificates. Unless you are familiar with the new “For Sale” sign statute regarding limitations on an association’s ability to regulate signs, you could easily disclosure incorrect information to prospective purchasers and that’s no way to get off to a good start with new members of the community.

Other changes affecting resale certificates that became effective July 1, 2017 are: (i) if an owner designates a licensed real estate agent as the unit owner’s representative in writing to the association, the association must recognize such representation without the requirement for a formal power of attorney; however, the representative will not have the right to vote on behalf of the owner without a valid proxy; and (2) the Common Interest Community (CIC) Board may now assess a monetary penalty to the association or the association’s common interest community manager (as the case may be) for failure to deliver the resale certificate within 14 days.

Section 55-79.97 of the Virginia Condominium Act and Section 55-509.4 of the Property Owners Association (POA) Act provide a complete list of the information and documentation required to be part of the resale certificate. It’s a prudent business practice to compare your resale certificate to the appropriate statute after July 1 of each year to make sure your association remains in compliance.

 

Question:

I have a contract on my Virginia condo to close next week.  After the contract was signed, a special assessment was voted on and passed. The first due date for the assessment is after the closing.

The contract says "Unless otherwise agreed to in writing, Seller will pay any special assessments and will comply with all orders or notices of violations of any county or local authority, condominium unit owners’ association, homeowners’ or property owners’ association or actions in any court on account thereof, against or affecting the Property on the Settlement Date."

The title agency is saying that because the special assessment was passed before the closing I must pay the whole assessment.  Is this the correct interpretation of the above language from the contract?   I will pay it if I have to, but as it is not even due until after the settlement date; I would like to confirm.

Continue Reading Who is responsible to pay special assessment?