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Disclosure Packets and Certificates
- The certificate or resale packet must disclose any post-closing fees charged by the management company and the past six months of association meeting minutes.
- Two copies of the certificate or packet will be provided in either electronic or hard copy format. Sellers may request a hard copy in-person at the association’s office. No fees shall be charged to access the management company’s electronic delivery system.
- The certificate or packet shall be sent to the parties listed on the resale certificate request and in the format specified on the request (print or electronic).
Packet and Certificate Fees
- Associations or their management companies shall make a schedule of fees available so that sellers will know the cost at the time the packet is requested. In no event shall the fees exceed the following limits:
$100 for the physical inspection of the unit;
$150 for two hard copies or $125 for two electronic copies of the certificate or disclosure packet;
$50 for optional expedited delivery;
$25 for additional hard copies at the seller’s option;
Actual cost for optional third-party hand or overnight delivery;
$50 post-closing fee to set up the purchaser’s association account.
- Expedited fees may only be charged if the inspection and delivery of the packet are completed in 5 business days.
- No association may charge an inspection fee unless they have architectural control over the unit.
- All costs shall be collected at settlement and no fees shall be due when the packet is requested. If settlement does not occur within 90 days of packet delivery, the fees shall be assessed against the unit owner.
- The fees may adjust every five years in relation to the U.S. Consumer Price Index.
Packet and Certificate Expiration and Updates
- If a resale certificate or packet has been issued within the past 12 months, the seller or purchaser only needs to request an update instead of ordering a new certificate or packet. Such updates must be delivered within 10 days.
- Settlement agents may request financial updates to the packets.
- The cost for such updates shall not exceed $50.
- There shall be no cost to the settlement agents for requests of written escrow instructions.
- The purchaser may request an additional inspection of the property by the association for not more than $100.
Oversight of Association Management Companies
- Virginia shall create a Common Interest Community Board, with powers similar to the Real Estate Board, to establish licensing procedures for community managers and to hear consumer complaints against licensees.
- On January 1, 2009, all entities offering professional association management services for a fee will be required to be licensed in Virginia.
- By July 1, 2011, all company employees that have the primary responsibility for association management will obtain certification from the Common Interest Community Board that the individual possesses the skills and character necessary for association management.
- Association management companies will be required to obtain surety bonds in the amount of $2 million or the amount of operating and reserve balances of the association, whichever is less.
- All association funds must be kept separate from the management company’s operating accounts.
- A Common Interest Community Ombudsman will be named to educate and assist association members.
- Annual reports on complaints and inquiries shall be submitted to the General Assembly and the Housing Commission.
- A Common Interest Community Management Recovery Fund is established to pay claims resulting from violations of the statute.