The Virginia REALTORS® legal and government affairs teams are working to amend recently-changed language to a form that may affect property owner association related transactions.
The Common Interest Community (CIC) Board has amended the Virginia Property Owners’ Association Disclosure Packet Notice Form, which is required to accompany all property owner association disclosure packets.
This form now states, “[t]he purchaser may have the right to cancel the contract after receiving the disclosure packet or an update of the disclosure packet.”
The form is currently available on the Common Interest Community Board website and is already in use by property owner associations.
The use of the word “may” in this context could cause confusion as to whether and when a buyer has a three-day right of cancellation, when in fact, the law does give the buyer the right to cancel the contract after receiving the disclosure packet, but not after receiving an update.
We will offer additional information as your Virginia REALTORS® staff works on your behalf to ensure that the form language accurately reflects the law.
What you need to know
- The form is legally incorrect since it says the buyer may have a right to terminate after receiving an update. However, the use of the word “may” reduces the risk while we work to have the form changed.
- The form could cause some confusion with your clients as to their rights.
- There IS absolutely a three-day right of cancellation after receipt of a disclosure packet.
- There is NOT a three-day right of cancellation after receipt of an update.
- This does not apply to the Condominium Act or condo resale certificate.