55-79.97 - Resale by purchaser.
§ 55-79.97. Resale by purchaser.
A. In the event of any resale of a condominium unit by a unit owner otherthan the declarant, and subject to the provisions of subsection F and §55-79.87 A, the unit owner shall disclose in the contract that (i) the unitis located within a development which is subject to the Condominium Act, (ii)the Act requires the seller to obtain from the unit owners' association aresale certificate and provide it to the purchaser, (iii) the purchaser maycancel the contract within three days after receiving the resale certificate,(iv) if the purchaser has received the resale certificate, the purchaser hasa right to request a resale certificate update or financial update inaccordance with § 55-79.97:1, as appropriate, and (v) the right to receivethe resale certificate and the right to cancel the contract are waivedconclusively if not exercised before settlement.
B. If the contract does not contain the disclosure required by subsection A,the purchaser's sole remedy is to cancel the contract prior to settlement.
C. The information contained in the resale certificate shall be current as ofa date specified on the resale certificate. A resale certificate update or afinancial update may be requested as provided in § 55-79.97:1, asappropriate. The purchaser may cancel the contract (i) within three daysafter the date of the contract, if the purchaser receives the resalecertificate on or before the date that the purchaser signs the contract; (ii)within three days after receiving the resale certificate if the resalecertificate is hand delivered or delivered by electronic means and a receiptobtained; or (iii) within six days after the postmark date if the resalecertificate is sent to the purchaser by United States mail. Notice ofcancellation shall be provided to the unit owner or his agent by one of thefollowing methods:
a. Hand delivery;
b. United States mail, postage prepaid, provided the sender retainssufficient proof of mailing, which may be either a United States postalcertificate of mailing or a certificate of service prepared by the senderconfirming such mailing;
c. Electronic means provided the sender retains sufficient proof of theelectronic delivery, which may be an electronic receipt of delivery, aconfirmation that the notice was sent by facsimile, or a certificate ofservice prepared by the sender confirming the electronic delivery; or
d. Overnight delivery using a commercial service or the United States PostalService.
In the event of a dispute, the sender shall have the burden to demonstratedelivery of the notice of cancellation. Such cancellation shall be withoutpenalty, and the unit owner shall cause any deposit to be returned promptlyto the purchaser.
A resale certificate shall include the following:
1. An appropriate statement pursuant to subsection H of § 55-79.84 which neednot be notarized and, if applicable, an appropriate statement pursuant to §55-79.85;
2. A statement of any expenditure of funds approved by the unit owners'association or the executive organ which shall require an assessment inaddition to the regular assessment during the current or the immediatelysucceeding fiscal year;
3. A statement, including the amount, of all assessments and any other feesor charges currently imposed by the unit owners' association, together withany known post-closing fee charged by the common interest community manager,if any, and associated with the purchase, disposition and maintenance of thecondominium unit and the use of the common elements, and the status of theaccount;
4. A statement whether there is any other entity or facility to which theunit owner may be liable for fees or other charges;
5. The current reserve study report or a summary thereof, a statement of thestatus and amount of any reserve or replacement fund and any portion of thefund designated for any specified project by the executive organ;
6. A copy of the unit owners' association's current budget or a summarythereof prepared by the unit owners' association and a copy of the statementof its financial position (balance sheet) for the last fiscal year for whicha statement is available, including a statement of the balance due of anyoutstanding loans of the unit owners' association;
7. A statement of the nature and status of any pending suits or unpaidjudgments to which the unit owners' association is a party which either couldor would have a material impact on the unit owners' association or the unitowners or which relates to the unit being purchased;
8. A statement setting forth what insurance coverage is provided for all unitowners by the unit owners' association, including the fidelity bondmaintained by the unit owners' association, and what additional insurancecoverage would normally be secured by each individual unit owner;
9. A statement that any improvements or alterations made to the unit, or thelimited common elements assigned thereto, are or are not in violation of thecondominium instruments;
10. A copy of the current bylaws, rules and regulations and architecturalguidelines adopted by the unit owners' association and the amendments thereto;
11. A statement of whether the condominium or any portion thereof is locatedwithin a development subject to the Property Owners' Association Act (§55-508 et seq.) of Chapter 26 of this title;
12. A copy of the notice given to the unit owner by the unit owners'association of any current or pending rule or architectural violation;
13. A copy of any approved minutes of the executive organ and unit owners'association meetings for the six calendar months preceding the request forthe resale certificate;
14. Certification that the unit owners' association has filed with the CommonInterest Community Board the annual report required by § 55-79.93:1; whichcertification shall indicate the filing number assigned by the CommonInterest Community Board and the expiration date of such filing;
15. A statement of any limitation on the number of persons who may occupy aunit as a dwelling; and
16. A statement setting forth any restrictions, limitation or prohibition onthe right of a unit owner to display the flag of the United States,including, but not limited to reasonable restrictions as to the size, time,place, and manner of placement or display of such flag.
Failure to receive a resale certificate shall not excuse any failure tocomply with the provisions of the condominium instruments, articles ofincorporation, or rules or regulations.
The resale certificate shall be delivered in accordance with the writtenrequest and instructions of the seller or his authorized agent, includingwhether the resale certificate shall be delivered electronically or in hardcopy, and shall specify the complete contact information for the parties towhom the resale certificate shall be delivered. The resale certificate shallbe delivered within 14 days of receipt of such request. The resalecertificate shall not, in and of itself, be deemed a security within themeaning of § 13.1-501.
D. The seller or his authorized agent may request that the resale certificatebe provided in hard copy or in electronic form. A unit owners' association orcommon interest community manager may provide the resale certificateelectronically; however, the seller or his authorized agent shall have theright to request that the resale certificate be provided in hard copy. Theseller or his authorized agent shall continue to have the right to request ahard copy of the resale certificate in person at the principal place ofbusiness of the unit owners' association. If the seller or his authorizedagent requests that the resale certificate be provided in electronic format,neither the unit owners' association nor its common interest communitymanager may require the seller or his authorized agent to pay any fees to usethe provider's electronic network or system. If the seller or his authorizedagent asks that the resale certificate be provided in electronic format, theseller or his authorized agent may designate no more than two additionalrecipients to receive the resale certificate in electronic format at noadditional charge.
E. Subject to the provisions of § 55-79.87, but notwithstanding any otherprovisions of this chapter, the provisions and requirements of this sectionshall apply to any such resale of a condominium unit created under theprovisions of the Horizontal Property Act (§ 55-79.1 et seq.).
F. The resale certificate required by this section need not be provided inthe case of:
1. A disposition of a unit by gift;
2. A disposition of a unit pursuant to court order if the court so directs; or
3. A disposition of a unit by foreclosure or deed in lieu of foreclosure.
G. In any transaction in which a resale certificate is required and a trusteeacts as the seller in the sale or resale of a unit, the trustee shall obtainthe resale certificate from the unit owners' association and provide theresale certificate to the purchaser.
(1974, c. 416; 1975, c. 415; 1978, cc. 234, 290; 1983, c. 60; 1984, cc. 29,103; 1990, c. 662; 1991, c. 497; 1994, c. 172; 1997, c. 222; 1998, cc. 32,454, 463; 1999, c. 263; 2001, c. 556; 2002, cc. 459, 509; 2005, c. 415; 2007,cc. 696, 712, 854, 910; 2008, cc. 851, 871.)