When a residential property being sold is part of a common interest community, the Virginia Code, specifically section 55.1-2309, imposes a duty on the seller or seller’s agent to request a resale certificate from the association and ensure it is provided to the purchaser. The seller or seller’s agent must make the request for the resale certificate in writing. Once the written request is received, the association has 14 days to provide the resale certificate to the seller or other person as the seller may direct.  

If an association fails to provide the resale certificate the purchaser will not be required to pay any delinquent assessments or remedy any violation existing as of the date the resale certificate was requested. However, even if the purchaser does not receive the resale certificate, the purchaser is still obligated to abide by the governing documents, rules, and regulations of the association. 

If an association fails to provide a resale certificate when one has been requested in writing, the Common Interest Community Board may assess a monetary penalty on the association, and the association may be liable for up to $1,000 of actual damages to the seller. 

The Virginia Code also outlines certain circumstances under which a resale certificate is not required, even when the property is in a common interest community. Some of those scenarios include the initial acquisition of the property, the transfer of the property by gift, court order, foreclosure, or when the property is sold at auction and the resale certificate was provided as part of the auction package. 

If you have any questions about this article, please reach out to the Virginia REALTORS^® Legal Hotline.