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Q: “I represent a buyer. The property in question is subject to two HOAs. We have received the resale certificate for one of the HOAs but not the other. When does the clock start for purposes of my buyer’s right of cancellation, upon receiving the first resale certificate or the second?”

A: The timeframe in which a buyer has the right to terminate the contract after receiving the resale certificate begins upon delivery of the last resale certificate. Section 55.1-2312 of the Resale Disclosure Act in the Virginia Code states, “If the unit is governed by more than one association, the timeframe for the purchaser’s right of cancellation shall run from the date of delivery of the last resale certificate.” In this scenario, the timeframe will begin once the second resale certificate has been delivered. 

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