Common Interest Community Association Disclosures
Significant Changes to Resale Certificates/Disclosure Packets Effective July 1, 2023
As a result of the passage of Senate Bill 1222 and House Bill 2235 during the 2023 General Assembly Session, associations will see significant changes to the form for providing resale certificates/disclosure packets. These changes are effective July 1, 2023.
The legislation took all provisions for resale certificates (condominiums) and disclosure packets (property owners’ association) from the Virginia Condominium Act (§55.1-1900, et seq.), the Property Owners’ Association Act (§55.1-1800, et seq.), and the Virginia Real Estate Cooperative Act (§55.1-2100, et seq.) and created a single act with all resale provisions: the Virginia Resale Disclosure Act (§55.1-2307, et seq.). This will help to streamline the process for providing required documents at resale, which culminated in several significant changes to the provisions for providing resale documents. Following is a brief summary, but please refer to the legislation in its entirety for more information.
- All documents pertaining to resale are now referred to as the “resale certificate.” The term “disclosure packet” has been eliminated.
- Instead of the Common Interest Community Board (Board) only producing a form to accompany resale certificates, the Board was charged with creating a standardized resale certificate form. This form must be used for all resales effective July 1, 2023.
- The standardized resale form will now be consistent across all associations and easier for users to navigate.
- The construction of the form allows the first few pages to serve as a road map of the document and a broad overview, with specific documents found in the appendices following the initial summary pages.
- The documents must be attached in the order provided.
- All resale certificate fees are now due when the item is ordered. This means that when a seller orders the resale certificate, they will have to pay for the certificate at that time, not at settlement, unless the association adopts a different policy.
- In order to collect the fees authorized by the Virginia Resale Disclosure Act, the association (i) must be registered by the Board, (ii) is current in filing its most recent annual report and fees with the Board, (iii) must be current in paying any assessment made by the Board, and (iv) must provide the option to receive the disclosure packet electronically.
Should you have any questions about the standardized Resale Certificate Form or the new Virginia Resale Disclosure Act, please contact the Board office.
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