Q: If my seller obtained a homeowner’s resale certificate or POA packet when recently purchasing their home, do they still need to obtain new HOA documents to give to a prospective buyer even though it has only been a few months since they purchased the home and obtained those documents from the prior transaction?
A: Yes. The Property Owners’ Association Act (POA Act) “requires the seller to obtain from the property owners’ association an association disclosure packet and provide it to the purchaser.” (Va. Code § 55.1-1808.B.) Similarly, the Condominium Act (Condo Act) “requires the seller to obtain from the unit owners’ association a resale certificate and provide it to the purchaser.” (Va. § Code 55.1-1900.B.)
Both the POA Act and Condo Act require the seller in the transaction be the party that obtains either the disclosure packet or resale certificate from the association. Even if the seller recently purchased the property, when the seller first received the packet/certificate, they received it from the prior seller, not the association. Thus, the packet/certificate being provided to the new purchaser would be invalid for the law’s disclosure requirements.
Also, keep in mind both the POA Act and Condo Act provide purchasers a window of time beginning upon receipt of the packet/certificate (3 to 7 days, depending on the contract) to cancel a contract. This time period begins even if the packet/certificate is not in conformity with the law and/or does not contain all the information required.
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