HB 876 — Resale Disclosure Act; delivery of resale certificate, remedies.

SESSION ENROLLED VIRGINIA ACTS OF ASSEMBLY ––-- 2024 SESSION CHAPTER E54 An Act to amend and reenact §§ 55.1-2308 through 55.1-2312, 55.1-2316, and 55.1-2317 of the Code of Virginia, relating to Resale Disclosure Act;

R O [H 876] Approved LMarch L8, 2024 Be it enacted by the General Assembly of Virginia:

That §§ 55.1-2308 through 55.1-2312, 55.1-2316, and 55.1-2317 of the Code of Virginia are E amended and reenacted as follows:

D Unless exempt pursuant to § 55.1-2317,55.1-2308. any contract for the resale of a unit in a common interest community shall disclose (i) that the unit is located in a common interest community;

(ii)Contract thatfor theresale; seller or the seller's agent is required to obtain from the association a resale certificate and provide it to the purchaser or the purchaser's agent;

(iii)disclosures. the purchaser's right to cancel the contract pursuant to § 55.1-2312;

Unless exempt pursuant to § 55.1-2317, any contract for the resale of a unit in a common interest community shall disclose (i) that the unit is located in a common interest community;

(ii) that the seller or the seller's agent is required to obtain from the association a resale certificate and provide it to the § 55.1-2312;

If the contrHctcontract does not contain the disclosures required by this section, the purchaser's sole remedy is to cancel the 8ontractcontract pri§prior 55.1-2309.to settlement.

§ 55.1-2309.

6 A.

behalfC. of the association shall deliver the resale certificate to the seller, or to such person as the seller may direct, either printed or in a generally accepted electronic format as the seller may request.

The association, association's managing agent, or any third party preparing the resale certificate on behalf of the association shall deliver the resale certificate to the seller, or to such person as the seller may direct, either printed or in a generally accepted electronic format as the seller may request.

The association shall include the completed resale certificate form, developed by the common interest community board pursuant to subdivision 3 of § 54.1-2350, with supporting documentation set out1.out in the following order:

1.

for6. assessments, fees, or other charges due to the ownership of the unit;he unit being sold may be liable 7.

A statement of any other entity or facility to which the owner of the unit being sold may be liable for assessments, fees, or other charges due to the ownership of the unit;

7.

11.

The current operating budget of the association;

A statement of any unsatisfied judgments against the association and the nature and status of any of 4 pending actions in which the association is a party and that could have a material impact on the association, the owners, or the unit being sold;

of 4 14.

of 4 2.

Within three days, or up to seven days if extended by the ratified real estate contract, from the date the purchaser receives the resale certificate, whether or not complete pursuant to § 55.1-E310,55.1-2310, or a notice that the resale certificate is unavailable if delivery occurs after the contract is ratified;

If delivery of the resale certificate to the purchaser or purchaser's agent, whether or not complete pursuaRtpursuant to of 4 § 55.1-2310, or a notice that the resale certificate is unavailable, occurs before the contract is ratified, the purchaser may cancel the contract within a time period agreed upon by all parties in the ratified real estate contract.

L B.

If delivery of the resale certificate to the purchaser or purchaser's agent, whether or not complete pursuant to § 55.1-2310, or a notice that such resale certificate is unavailable, occurs after the contract is ratified, the purchaser may cancel the contract within a time period agreed upon by all partEesparties to the real estate contract.

If the resale certificate or notice that the resale certificate is unavailable has not been delivered settlement.haser,to the purchaser, the purchaser or purchaser's agent may cancel the contract at any time prior to B.settlement.

B.

If the unit is governed by more than one association, the timeframe for the purchaser'Hpurchaser's right of cancellation shall run from the date of delivery of the last resale certificate.

B D.

Cancellation shall be without penalty, and the seller shall cause any deposit or escro7edescrowed funds to be returned promptly to the purchaser.

E § 55.1-2316.

R A.

An association may charge a post-closing fee and fees for preparation, delivery, and expedited delivery of a resale certificate, an updated resale certificate, or financial update and for the inspection of bya theunit association,performed theto appropriateprepare fees shall be paid when the resale certificate,certificate updated resaleotherwise certificate, or financialupdated updateresale iscertificate. requested.

Unless provided otherwise by the association, the appropriate fees shall be paid when the resale certificate, updated resale certificate, or financial update is requested.

Unless provided otherwise by the association or this section, fees charged by an association for shallthe bepreparation paidand whendelivery theof a resale certificate, an updated resale certificate, or a financial update isshall requested.tebe However,paid ifwhen the sellerresale agreescertificate, toupdated payresale thecertificate, fees for preparation and delivery of the financial update, the association or the association's management agent shall either (i) upon receipt of the request for the financial update,update sendis instructionsrequested. by electronic means to the seller for electronic payment or (ii) accept payment of such fees at the time of closing.

However, if the seller agrees to pay the fees for preparation and delivery of the financial update, the association or the association's management agent shall either (i) upon receipt of the request for the financial update, send instructions by electronic means to the seller for electronic payment or (ii) accept payment of such fees at the time of closing.

The maximum allowable fees, as published by the Common Interest Community Board and effective as of January 12, 2023, shall be adjusted no less than every five years, as of January 1 of that year, in an amount not less than the annual increases for that five-year period in the United States Average Consumer Price Index for all items, all urban consumers (CPI-U), as published by the Bureau of Labor Statistics of the U.S.

No association may collect fees authorized by this section unless the association (i) is reportregistered and fee with the Common Interest Community BoardBoard; pursuant to § 55.1-1835, 55.1-1980, or annual 55.1-2182;