Martin & Raynor, P.C. - Resale of a Condominium by a Unit Owner other than the Declarant

Resale of a Condominium by a
Unit Owner other than the Declarant
January 1, 2002

Martin & Raynor, P.C.
1228 Cedars Court
Charlottesville, Virginia 22903-4801
Telephone: (434) 817-3100
Fax: (434) 817-3110

The Declarant
1. The unit owner shall disclose in the contract that:
  1. The unit is located within a development which is subject to the Condominium Act.
  2. The Act requires the seller to obtain from the unit owners’ association a resale certificate and provide it to the purchaser.
  3. The purchaser may cancel the contract within three days after receiving the resale certificate.
    1. The purchaser has a right to request an update of the resale certificate.
    2. The right to receive the resale certificate and the right to cancel the contract are waived conclusively if not exercised before settlement.
2. If the contract does not contain the above disclosure, the purchaser’s sole remedy is to cancel the contract prior to settlement.
3. The information contained in the resale certificate shall be current as of a date specified on the resale certificate. The purchaser may cancel the contract: (i) within three days after the date of the contract, if the purchaser receives the resale certificate on or before the date that the purchaser signs the contract; (ii) within three days after hand-delivered receipt of the resale certificate; or (iii) within six days after the post-marked date, if the resale certificate is sent to the purchaser via the United States mail. The purchaser’s notice of cancellation shall be either hand-delivered or sent via the United States mail, return receipt requested, to the seller. The purchaser’s cancellation pursuant to this subsection shall be without penalty. The contract shall become void upon cancellation and the deposit shall be refunded in full to the purchaser upon the purchaser’s notice of cancellation.
4. Any rights of the purchaser to cancel the contract are waived conclusively if not exercised prior to settlement.
Contents of the resale certificate and other requirements.
1. Unit Owners’ Association requirements: The unit owners’ association shall make available to a unit owner within fourteen days after receipt of a written request and receipt of the appropriate fee, a resale certificate, which, upon receipt, the seller shall deliver to the purchaser. The information contained in the association disclosure packet shall be current as of a date specified on the resale certificate.
  1. Required Contents:
    1. A statement setting forth the amount of unpaid assessments currently levied against the unit and any rights of first refusal or free alienability of units;
    2. A statement of any expenditure of funds approved by the unit owners’ association or the executive organ which shall require an assessment in addition to the regular assessment during the current or immediately succeeding fiscal year;
    3. A statement, including the amount of all assessments and any other mandatory fees or charges currently imposed by the unit owners’ association and associated with the purchase, disposition and maintenance of the unit and to the right of use of common elements, and the status of the account;
    4. A statement whether there is any other entity or facility to which the unit owner may be liable for fees or other charges;
    5. A statement of the status and amount of any reserve or replacement fund and any portion of the fund allocated by the executive organ for a specified project;
    6. A copy of the unit owners’ association’s current budget or a summary thereof prepared by the unit owners’ association, and a copy of the statement of its financial condition for the last fiscal year for which such statement is available;
    7. A statement of the nature and status of any pending suit or unpaid judgment to which the unit owners’ association is a party which either could or would have a material impact on the association or the unit owners or which relates to the unit being purchased;
    8. A statement setting forth what insurance coverage is provided for all unit owners by the unit owners’ association, including any fidelity bond maintained by the unit owners’ association, and what additional insurance would normally be secured by each individual unit owner;
    9. A statement that any improvement or alteration made to the unit or the limited common elements assigned thereto, by the prior unit owner, are not in violation of the condominium instruments;
    10. A copy of the current bylaws, rules and regulations and architectural guidelines adopted by the unit owners’ association and amendments thereto;
    11. A statement of whether the condominium or any portion thereof is located within a development subject to the Property Owners Association Act;
    12. Certification, if applicable, that the unit owners’ association has filed with the Real Estate Board the annual report required by Section 55-516.1; which certification shall indicate the filing number assigned by the Real Estate Board and the expiration date of such filing; and
    13. A statement of any limitation on the number of persons who may occupy a unit as a dwelling.
  2. Miscellaneous.
    1. Failure to receive copies of such documents shall not excuse any failure to comply with the provisions thereof.
    2. The resale certificate, once received by the owner from the unit owner’s association, shall be delivered by the owner to the purchaser. The unit owners’ association shall have no obligation to deliver the resale certificate to the purchaser of the unit. The resale certificate required by this section shall not, in and of itself, be deemed a security within the meaning of Section 13.1-501.
    3. The purchaser may submit a copy of the contract to the unit owners’ association with a request for assurance that the statements required by this section previously furnished remain materially unchanged, or, if there have been material changes, a statement specifying such changes. The purchaser shall be provided with such assurances or such statement within ten days of the receipt of such request by the unit owners’ association. The purchaser may be required to pay the same fee charged a unit owner for the resale certificate, if any. The statement of assurances shall be provided within ten days of receipt of the request by the unit owners’ association.
    4. The association may charge a fee for the preparation and issuance of the disclosure packet required by this section. The fee shall reflect the actual cost of the preparation of the packet, but shall not exceed $100.
    5. When a disclosure packet has been issued as required by this section, the association shall, as to the purchaser, be bound by the statements set forth therein as to the status of the assessment account and the status of the unit with respect to any violation of any of the instruments referred to as of the date of the statement unless the purchaser had actual knowledge that the contents of the disclosure packet were in error.
    6. In the absence of a written agreement to the contrary, the failure of the unit owners’ association to provide the assurance statement or the disclosure that there have been one or more material violations shall render the purchase contract void at the option of the purchaser.
Sanctions on unit owners’ association.
1. If the unit owners’ association has been requested to furnish the resale certificate and has been paid the appropriate fee, its failure to provide the resale certificate in substantially the form provided herein within fourteen days from the actual receipt of the request by an officer, director or agent of the unit owners’ association shall be deemed a waiver of any claim for delinquent assessments or of any violation of the declaration, bylaws, rules and regulations, or architectural guidelines existing as of the date of the request with respect to the subject unit.
2. The unit owners’ association shall be liable to the seller in an amount equal to the actual damages sustained by the seller in an amount not to exceed $500.
3. The purchaser shall nevertheless be obligated to abide by the declaration, bylaws, rules and regulations, and architectural guidelines of the unit owners’ association as to all matters arising after the date of settlement of the sale.
Exemptions.
1. A disposition of a unit by gift;
2. A disposition of a unit pursuant to court order if the court so directs;
3. A disposition of a unit by foreclosure or deed in lieu of foreclosure.